There comes a time when busy landlords might need some help running their rental property and decide to hire a property manager. To make the most of your investment, it is important to find the right tenants, stay on top of maintenance, and make sure rent is paid on time. A professional property management company can help with these tasks by streamlining your business and handling the day-to-day operations of your rental property, which ultimately frees up a lot of your time. 

However, finding the right property manager can be tricky. A good property manager is somebody with experience and a track record of success you can trust. When looking for a professional to help you with your investment property, here is how to avoid hiring a bad property manager.

1. Consider the Property Manager’s Expertise

There are a few things to ask yourself when you start your search for a property manager. What do you need? What do you want the most help with? Does this property manager’s expertise align with your needs? In order to answer these questions, you should ask the property managers if they specialize in any type of property and what services they offer.

If you have one or several multi-family properties, you will want to find a property manager that has the experience and tools to handle the number of tenants you have. If you own several rental homes and need to find quality long-term tenants, a property manager who provides highly-targeted marketing services and in-depth tenant screenings will be an important factor.

2. Read Online Reviews of the Property Management Company

As part of your due diligence when vetting property managers, it is essential to check online reviews and client testimonials to see what current or former clients are saying about the business. While a company’s website can appear polished and professional, reviews will give you insight into the way they treat clients and tenants, follow through on their promises, and handle tenant conflicts.

Things to watch for include:

• Low star ratings
• Too many poor reviews
• Negative feedback on tenant relations
• Negative feedback on communication or responsiveness
• Major issues that affected the client’s business

If you notice any red flags, you may want to think about crossing that candidate off your list, especially if there are several complaints about the same issue.

3. Confirm the Property Manager’s Qualifications

Another way to weed out unprofessional property managers is to check their qualifications and experience. You will want to ask if they are licensed and what types of certifications they have. There are several real estate organizations that provide training and certifications that hold a lot of weight in the industry. Without these qualifications, you may be left dealing with an incompetent property manager who lacks the skills you need.

Additionally, you should ask how long the company has been in business—specifically in your area. Understanding the local real estate market and current trends is crucial to providing the best service and optimizing your rental income. If the property management company does not have an established office or experience in the region, you may want to pass on them.

4. Ask About Eviction Rates

While it is important to know your property manager can handle any eviction issues that come up with your tenants, eviction rates are something to consider. If the property management company has high eviction rates, that could be a sign that they are not doing a very good job of screening potential tenants.

The need to evict problematic tenants goes down when you do a thorough screening process of applicants, including background and credit checks, income verification, rental history, and reference checks. Evictions can be expensive and time-consuming, so you will want to work with a property manager whose services can help you avoid them.

5. Ask About Vacancy Rates

Just like eviction rates, the current vacancy rate of any property management company can provide insight into what you can expect for your rental property. If their vacancy rate is particularly high when compared to other property managers you are considering, it could mean:

• Their marketing and advertising strategies are not working.
• The properties they manage are less desirable than others in the area.
• They are failing to make basic repairs or improvements.
• They do not have the resources to fill vacancies quickly.

RELATED: 7 Ways Vacant Rental Properties Are Costing You Money

6. Always Read the Fine Print

If everything sounds good and you are ready to sign a contract with a property manager, do not rush through the signing process. You should always take your time to look through the contract, read the fine print, and make sure you understand exactly what you will be getting. If there is anything you do not understand or is not made very clear in the contract, you are well within your rights to ask for clarification or a change in wording to reduce any ambiguity or confusion.

Details to review include:

• Property management fees and structure
• Property management services
• Duration of the agreement
• Disbursement of income
• Property owner obligations
• Insurance requirements
• Contract termination

If the contract is unprofessional, does not cover important details, or is vague about fees or compensation, you may want to steer clear of that property management company.

7. Meet with Your Potential Property Manager

Even if everything looks good on paper, you definitely should meet with the potential property manager with whom you may be communicating with on a regular basis. Ideally, you want to work with somebody who is professional, has a pleasant demeanor, and can positively represent you when dealing with your tenants. Speaking with this person will show you how they communicate and their overall disposition, which will be important factors as you continue to work together.

Hiring the Right Property Management Company

Finding the right property manager is a huge step in growing your business and expanding opportunities. If you are looking for a full-service Henderson or Las Vegas property management company, Black & Cherry provides the services you need to take your investment property to the next level, including professional listings of your rental vacancies, tenant screenings, rent collection, property maintenance, and tenant communication.

To learn how we can help you with your rental property, contact our property management team today to schedule a consultation!