Since managing real estate properties requires overseeing numerous responsibilities, hiring a property manager may relieve the burden. Property managers provide benefits, such as giving you more time to spend on other aspects of your life. And this freed-up time proves that hiring a property manager can help alleviate unnecessary stress.
Sometimes, though, you may wonder whether hiring a property manager is worth the cost. In this article, we will go over the seven common reasons why property owners fire property managers.
This article explains what to avoid when hiring a property manager if you have never before employed one to oversee your properties.
Reason No. 1: Lack of Communication
Communication is vital in any relationship, including business relationships.
There are property managers, however, that have poor communication skills. The following list includes signs of a property manager who lacks communication skills:
- Does not return phone calls
- Does not respond to texts or emails
- Does not present a monthly update to the owner
- Failure to notify the owner of any alterations and maintenance requests, even complaints about the tenant
- Cannot justify their disbursements
If a property manager displays these actions, they do not just lack proper communication but also the professionalism to handle your property effectively.
Property managers must provide clear information about the current state of your residential or commercial property. They must always be available and quick to respond, especially in urgent situations.
Strong communication between the manager and the property owners ensures that the manager plays a pivotal role in decision-making, including making repairs and making leasing pay adjustments.
Reason No. 2: Unhealthy Tenants
A property manager’s job is more than just looking for occupants. They must also guarantee owners they can fill the property with quality tenants who will care for it.
Having quality tenants is vital to ensure your residential property will preserve its value and reputation. If an unhealthy tenant slides through the property manager’s screening process, this may put the owner and the property in a distressing situation.
Property managers need not compromise the screening process. Below are the documents you may want to request from potential tenants:
- A valid ID, such as a driver’s license
- Social security number
- Place of employment and their pay slips
- Bank account information
Evicting tenants is a time-consuming and costly process — no property owner wants to go through that. To avoid undependable tenants in the future, it is a must for property managers to conduct comprehensive screening.
Reason No. 3: Doing Less Than What They Promise
The worst mistake a property manager can make is to over-promise then under-deliver. It can take many years to build your credibility, so keeping your promises is imperative if you want to retain the client’s trust and grow your business as a property manager.
Given below are examples of property management promises that are far from reality:
- Overpriced rental fees
- Very cheap maintenance costs
- Idealistic timeline of leasing and turnover
Property managers should avoid giving owners false expectations, and they should be honest about what they can and cannot do. This transparency will strengthen ties between owners and property managers.
Reason No. 4: Lack of Expertise Compared to Other Property Managers
Owners choose property managers who they think will best manage their properties with excellent results. An owner may consider replacing their current property manager for these reasons:
- Property manager’s lack of expertise to effectively manage properties
- Owners are not satisfied with the quality of service
While property managers have individual strengths and weaknesses, they must exceed your expectations. Remember that the grass can always be greener on the other side, and as a property owner, you may look for a different manager because yours is not delivering.
Reason No. 5: Inefficient Property Maintenance and Damage Issues
Property managers are solely responsible for keeping properties well-maintained and in a safe condition. The following are parts of the property that need inspection at least twice a year. These include:
- HVAC systems
- Plumbing system
- Smoke alarms
Property managers should keep owners updated about each property’s condition, additional expenses, and anticipated vacancies. If there are any maintenance issues with the property, the property manager must immediately report them to the owner and suggest a list of solutions.
Property damage is a serious concern. Damages that go unnoticed may cost owners a lot of money and lead to the “firing” of property managers. To avoid these problems, owners and tenants must get insurance.
Reason No. 6: Long Vacancy on Properties
The goal of every property owner is to utilize their properties and generate income. One of the reasons property managers come in handy is to search for potential tenants. If the property manager has not brought in any tenants for an extended period, it may be time to let them go.
Property managers must create a cost-effective marketing strategy to attract potential tenants. Property managers can market through social media platforms or even build a free website for vacancy listings.
Reason No. 7: Issues on Expenses
While property managers simplify life for property owners, hiring these real estate professionals comes at a cost — sometimes a hidden cost, such as when property managers add hidden fees. If a property manager does not deliver their promises and tacks on these hidden fees, there is no point in keeping them.
Perhaps you are a property owner, and you realize that your rapport with your property managers fits one or more of these situations. You might want to consider talking to your property manager first and explaining your side before letting them go. Having this discussion will assure you that you made an effort to make the business relationship work, even if it does not work out.
If you are currently working as a property manager and want to build a stronger relationship with your clients, following these do’s and don’ts can help you become more effective and efficient.
Managing a rental property can be an overwhelming job but hiring a property manager can help take the load off.