A guest post by Andrew Payne, Louisville Property Management, Louisville, KY
Before doing business with a property management service, a property owner must feel that the company’s 8-10% management fee is valid and deserved. When you take a call from a prospective client, you must sell yourself based on what you truly offer. This article covers some key areas to explain when discussing your company’s role in the business.
If a manager doesn’t handle all incoming rental leads quickly, you can believe that they’ll move on to the next listing. In a market where the competition for renters is stiff, you need to jump on every opportunity. Also, responding quickly to maintenance or payment issues is of utmost importance.
Ability to deal with all types of tenants.
Being a landlord sometimes requires less-than comfortable interactions with tenants. Your role is to serve as their liason in all dealings no matter what. At the same time, understanding and compassion is a key trait. Your company must react to each situation in a way that best reflects the interests of the property owner.
Experience in marketing and applicant screening (judging the good from the bad).
One bad tenant can turn a profitable venture into a money pit. Owners benefit from an established procedure that a property manager uses. Appropriate market analysis, tenant screening, and statement accounting will ensure that the property is well-managed. In most states, a property manager must be a licensed real estate agent, which means we understand the laws and duties that are required.
Guru of home maintenance and repair.
While much of the time will consist of quiet enjoyment on behalf of the tenant, maintenance and repairs will occasionally be necessary. Whether it’s unit preparation in between tenants or a plumbing issue, property managers diligently supervise all work done by their preferred vendors.
Value for service. No markups.
The industry standard is 8-10% of collected rent and 50% of the first month’s rent for tenant placement. While this represents an additional cost to the property owner, it ensures that the property will be well-managed. There should be no markup on maintenance or repair, and any funds resulting from late-fees or penalties should belong to the property owner.
A property management company is essentially a partner in the rental business. A company that exhibits these traits will become an essential entity and ensure the best chance of success.