The Six Major Problems Property Owners Face With Property Management - And How to Solve Them
Property ownership for the investor can be extremely exciting.
For many investors, it's a proven way to get on the road to a bright financial future.
Unfortunately, for some investors, the dream quickly becomes a nightmare.
Why? Two words: property management.
Owners often choose the wrong management company.
The result? A major headache.
And the owner has signed a contract and may be 'chained' to their management company for several months or maybe longer.
Ask any investor and they will quickly tell you that looking after their investment can be much more time consuming than they originally thought.
And it also requires physical work plus significant expertise.
Here are the six most common complaints about managers.
ONE.
Poor communication.
When an owner has a question, it's extremely frustrating when the manager fails to respond to calls and emails in a timely fashion.
TWO.
Poor money management.
The company doesn't treat your money as carefully as you do.
THREE.
Poor attention to detail.
Seemingly small issues can become major issues...
expensive issues.
FOUR.
High employee turnover.
Managers come...
managers go.
So the owner ends up working with several different people.
FIVE.
Bad attitude.
The owner feels that everything is an inconvenience to the company they've hired.
SIX.
A restrictive termination clause that makes it difficult to fire the company.
Here's how a top-quality professional property management company solves these problems.
ONE.
The company communicates promptly-usually with a set policy; they may have a rule about replying to emails and phone calls within 24-48 hours.
TWO.
Systems for money management.
The company should collect and distribute the rent weekly.
This provides significant cash flow advantages and can reduce interest costs over the term of the loan.
THREE.
A checklist for maintenance.
This means the management company is paying close attention to the 'health' of the investment and is taking a preventative approach.
FOUR.
A team of experienced managers who have been with the company for several years, follow set procedures, and understand management.
FIVE.
An excellent 'can do' attitude based on a partnership approach.
SIX.
A sensible termination clause that makes it easy and financially painless to part ways-a strong company will not be afraid of this type of clause.
Finding the right investment property can be difficult.
Once an investor has found one, the job isn't finished.
The next step to success is finding the right company to manage the investment like the asset it is.
For many investors, it's a proven way to get on the road to a bright financial future.
Unfortunately, for some investors, the dream quickly becomes a nightmare.
Why? Two words: property management.
Owners often choose the wrong management company.
The result? A major headache.
And the owner has signed a contract and may be 'chained' to their management company for several months or maybe longer.
Ask any investor and they will quickly tell you that looking after their investment can be much more time consuming than they originally thought.
And it also requires physical work plus significant expertise.
Here are the six most common complaints about managers.
ONE.
Poor communication.
When an owner has a question, it's extremely frustrating when the manager fails to respond to calls and emails in a timely fashion.
TWO.
Poor money management.
The company doesn't treat your money as carefully as you do.
THREE.
Poor attention to detail.
Seemingly small issues can become major issues...
expensive issues.
FOUR.
High employee turnover.
Managers come...
managers go.
So the owner ends up working with several different people.
FIVE.
Bad attitude.
The owner feels that everything is an inconvenience to the company they've hired.
SIX.
A restrictive termination clause that makes it difficult to fire the company.
Here's how a top-quality professional property management company solves these problems.
ONE.
The company communicates promptly-usually with a set policy; they may have a rule about replying to emails and phone calls within 24-48 hours.
TWO.
Systems for money management.
The company should collect and distribute the rent weekly.
This provides significant cash flow advantages and can reduce interest costs over the term of the loan.
THREE.
A checklist for maintenance.
This means the management company is paying close attention to the 'health' of the investment and is taking a preventative approach.
FOUR.
A team of experienced managers who have been with the company for several years, follow set procedures, and understand management.
FIVE.
An excellent 'can do' attitude based on a partnership approach.
SIX.
A sensible termination clause that makes it easy and financially painless to part ways-a strong company will not be afraid of this type of clause.
Finding the right investment property can be difficult.
Once an investor has found one, the job isn't finished.
The next step to success is finding the right company to manage the investment like the asset it is.
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