For syndicators, the Property managers can be your best asset. Managing property managers can take less time than managing a property and the tenants, but it’s not as simple as hiring them and walking away. If you think you can “just set it and forget it,” you run the risk of creating even more stress for yourself. Here are 4 expert tips from industry insiders on managing property managers so you avoid headaches and save valuable time.
Tip #1 Syndicator: Do Your Research
A key part for syndicators managing property managers is hiring carefully in the first place. Your property manager will represent you and make important decisions, so you must do the right research before hiring a management company. Gather enough facts so that you can evaluate each candidate thoroughly. Most importantly, you want to find a property management company with a good track record. Research how long they’ve been in business and the types of properties they manage. Make sure they have the proper licensing for the laws in your area. Many states require a broker’s license to practice property management. Find out what others have to say about them. Do a quick Google search for any consumer reviews that may have been posted. How long have they been working with their clients? It’s a good sign if they have a long history with them. Are they located near your property? If they’re too far away, it can be difficult for a management company to dedicate the right amount of time to your property. How many properties do they currently manage? Will they have the resources available to effectively manage yours? Are they a member of an industry association such as the Insitute of Real Estate Management (IREM)?
Tip #2 Ask The Right Questions
Once you’ve done your research, you need to ask your candidates the right questions. If they’re not willing and able to answer your questions, move on. Give them potential scenarios and ask how they would handle the situations. Look for a property manager that doesn’t simply react to problems, but understand your role as a syndicator and your duty to your investors. Pointed questions help you see if they have efficient systems in place to manage proactively. Ask about their process for selecting tenants. Search for some of their current rental listings and drive by the properties. You can even ask the current tenants about their experience to get an idea of how well they’re doing their job.
Tip #3 Pay Attention To Warning Signs
One of the biggest mistakes property owners make, is prolonging the decision to replace a property manager. Not all property managers do what they say, and you’ll see the warning signs. If you notice the property manager putting off maintenance issues, past due rent payments, and poor tenant selection, it’s time to reevaluate your management company. As soon as you notice the quality of work deteriorating, it’s essential to act quickly.
Tip #4 Make Sure They Communicate Well With Syndicators
Finally, respectful and timely communication is at the core of good property management. Without it, your investment is at risk. To illustrate, if a tenant complains of a leaky shower, you need to trust the property manager will address the problem quickly before it causes costly damage to your property. Not only does communication keep your tenants happy, but it also keeps your property well-maintained.
All things considered, a dependable property manager to handle the daily tasks of operating a rental property is one of the best investments you can make when growing a real estate portfolio. Call us at Moschetti Law Group for advice on managing property management for a real estate syndication.
Tilden Moschetti, Esq., is a highly sought-after syndication attorney with nearly two decades of experience. His clientele ranges from real estate developers and startups to established businesses and private equity funds. Tilden’s expertise in syndication law comes not only from his knowledge of syndication and securities law but from real, hands-on experience as an active syndicator himself in every real estate product type and nearly all markets in the US. His knowledge and experience set him apart and established him as the Reg D legal services leader.