Sometime property managers are so anxious for business and properties, they fail to protect themselves from PITA owners. Here are some ways to make sure the relationship is beneficial to BOTH parties:
1) Have your property presentation at the property....there are 2 schools of thought on this - WOW them in your office or SEE what you are being asked to manage. I prefer to go to the property and interview the property owner there.
2) PREVIEW the property from your office chair * run MLS search for any current/past listings. Run assessor records for ownership to make sure that WHO you are meeting is the property owner. Run MLS rental comp OR Craigslist search for homes in similar areas.
3) Ask more questions of the property owner at the property presentation that you answer. If you have written marketing/presentation material, mail it in advance or take it to the presentation * I have a 18-page Rental Management proposal, I take 4 of my quarterly newsletters, 2 management agreements I have signed and a SASE for mgmt agreement and their CHECK to be returned to me.
4) Ask why they are thinking of renting their property? They want a long term rental investment? Can't sell so they will rent for 2 or 3 years? This is IMPORTANT if you have extensive web/up front marketing costs and efforts. Cover these costs in your management agreement if contract is cancelled
5) Ask about any service contracts, utilities, repair personnel familiar with property. Ask about neighbors and neighborhood if you don't already know.
6) If you have any qualms about the property owners, their questions (or lack of questions) don't be afraid to suggest an alternative property manager or that they have their listing agent place the rental in local MLS and find tenant if they are balking at your fees or marketing program.
If you don't HAVE a marketing program * GET ONE!!!
I walked out of a property presentation last week. I could not find an exterior photo from local MLS so I drove 20 min last Sun to take ext photo. When I got to the property presentation following Wed, it was batchelor pad PLUS which would make marketing difficult with owner in place. Owner was waiting for job relocation offers which meant property availability was unknown. Easy fix-it projects were left half-done AND owner is an attorney.
The property looked good from the exterior, it is a good area and is LARGE; however, before leaving, I suggested 2 more local (lesser) property managers who would be more likely to take property for management....
Don't be afraid to say no AND suggest other property managers.
PRO property managers will tell you that 90% of their client/hand holding time is spent on 10% of their owners....we expect PITA residents - we don't need PITA owners!!!
Comments(5)