Are you looking to hire a property manager to take care of your rental properties? It’s important that you do your due diligence and select wisely. A property manager will be doing more than taking care of the maintenance requirements and collecting rent. They’ll also be making critical decisions on your behalf that will impact the overall value of your property and the total cash flow you receive.
Proactive vs. Reactive
How does a proactive property manager differ from a reactive one? For starters, a proactive manager takes the initiative to recognize issues before they become full-blown problems that can deeply impact your bottom line. A reactive one waits until the tenant notifies them of building issues before they respond. Finding a proactive manager who has preventative measures in place and who can anticipate common issues before they arise, can save you thousands of dollars in maintenance and repair costs a year.
Reputation for Low Vacancy
The best PMs have low vacancy rates because they know how to attract high-quality tenants through effective marketing strategies and prescreening processes. They also have low turnover rates because they prioritize tenant retention by maintaining the properties to a higher standard and treating those tenants with respect. If you’re interviewing a prospect that has a high vacancy on their books, move on. High turnover and vacancy rates can often be a sign of management or marketing issues – neither is good for your bottom line. Your cash flow depends on your tenants being happy and the property cared for. If you hire a property manager that doesn’t care about either, you’ll end up with empty units and a negative ROI.
Maintenance and repair costs can make or break your profit margins. To keep costs under control you need a property manager who has a track record for putting tighter controls on financial transactions. So before you hire a company, ask to see some of their invoices to determine how much they are spending on landscaping, HVAC, and other contracted services. If the costs appear higher than average, consider it a red flag. The last thing you want to do is hire someone who contracts out jobs to their relatives and other vendors who pay kickbacks. The only person who loses in this situation is you. You want someone who is constantly looking for ways to improve the services while reducing costs. Not the other way around.
Round the Clock Availability
It’s a property manager’s job to be prepared for what can and will go wrong. And the speed of their response time can mean the difference between having angry, disgruntled tenants or happy ones. A serious leak or other emergency situation left to brew for a few hours can also result in costly property damage. Unfortunately, the vast majority of PMs don’t have a 24/7 emergency response system in place. You will want to hire someone that does.
Anyone can manage a property to some degree, but not everyone can manage the books. That’s why you need someone who has accounting professionals on staff who understand more than just how to run accounts payable and receivable - they should know how to realize profits. You’ll want a team that can balance expenses, set accurate rental prices, budget capital expenditures, create detailed cash flow projections, and utilize tax strategies to your advantage.
Looking for a trustworthy, dedicated, and highly experienced property manager with all the above traits? Contact us at Rent in Ottawa today.