Passive income… the ideal of those wishing to supplement their income, and, the cash cow for retirement age people. If only it were easy! One of the prime ways that people try to achieve it is through buying a rental property. However, success or failure can often be the product of one factor, the property manager who is tasked with caring for the nest egg.
So, the question is: How can we ensure that our choice of property manager will address all of our concerns?
Choosing A Property Manager – What To Look For?
No tower is built without a strong foundation, nothing is more true. The same principle applies to hiring a property manager. But, how can we do the due diligence to ensure success?
Whilst there are myriads of factors, 5 essential points must be addressed, and they are:
Point 1 – Don’t maintain the status quo: Perhaps our feeling is that we won’t rock the boat or complicate things, maybe asking the real estate agent if he will also manage the property. However, does an expert in real estate sales qualify someone to care in an ongoing basis, the property that we have bought? Probably not!
Point 2 – Help Them Reach Their Potential: When someone is aware that others in the same industry may be considered, they generally will strive to close the deal by offering incentives. Let the prospective property manager that they are only one of your options, and ask them what they can offer that is superior to their peers.
Point 3 – Due Diligence. People involved with real estate are generally good sales people. NO! I hear you cry… however, it is true. If you base your choice of property manager based upon the sales pitch, disaster could follow. Instead, why not ask for, and check references from others who have used the agent?
Point 4 – The Art of The Deal. Generally, the first position is not always the same as the bottom line. What this means is that you need to push the agent for more concessions, you may be surprised at what a little pressure can get you!
Point 5 – Rental Property Inspections: Don’t make the mistake that we did. We hired a property manager who never inspected the property whilst the tenants were there. As a result, our property was often left with rubbish piled high to the ceiling. How we regret not hiring a property manager who scheduled regular rental property inspections. So, ask the property manager how often they intend to inspect the property and what bond, or deposit they will take from prospective tenants.
Choosing A Property Manager – The Foundation of Success
It might be our tendency to think that the first professional that we meet will know more than us, and, therefore, we will bow to their superior intellect. However, knowledge is not always success. When we are choosing a property manager for our property, due diligence is an absolute must! The foundation of success is knowing WHAT to look for and how to determine whether those standards are met.
The questions listed above are a solid foundation when choosing a professional, although they are not necessarily the exhaustive list of possible options. However, one thing is for sure, asking these questions may well help you sleep better at night, and ensure that you have a rental property that will lay golden eggs for you for many years to come.
