Sometime property managers are so anxious for business and properties, they fail to protect themselves from PITA owners. Here are some ways to make sure the relationship is beneficial to BOTH parties:
1) Have your property presentation at the property....there are 2 schools of thought on this - WOW them in your office or SEE what you are being asked to manage. I prefer to go to the property and interview the property owner there.
2) PREVIEW the property from your office chair * run MLS search for any current/past listings. Run assessor records for ownership to make sure that WHO you are meeting is the property owner. Run MLS rental comp OR Craigslist search for homes in similar areas.
3) Ask more questions of the property owner at the property presentation that you answer. If you have written marketing/presentation material, mail it in advance or take it to the presentation * I have a 18-page Rental Management proposal, I take 4 of my quarterly newsletters, 2 management agreements I have signed and a SASE for mgmt agreement and their CHECK to be returned to me.
4) Ask why they are thinking of renting their property? They want a long term rental investment? Can't sell so they will rent for 2 or 3 years? This is IMPORTANT if you have extensive web/up front marketing costs and efforts. Cover these costs in your management agreement if contract is cancelled
5) Ask about any service contracts, utilities, repair personnel familiar with property. Ask about neighbors and neighborhood if you don't already know.
6) If you have any qualms about the property owners, their questions (or lack of questions) don't be afraid to suggest an alternative property manager or that they have their listing agent place the rental in local MLS and find tenant if they are balking at your fees or marketing program.
If you don't HAVE a marketing program * GET ONE!!!
I walked out of a property presentation last week. I could not find an exterior photo from local MLS so I drove 20 min last Sun to take ext photo. When I got to the property presentation following Wed, it was batchelor pad PLUS which would make marketing difficult with owner in place. Owner was waiting for job relocation offers which meant property availability was unknown. Easy fix-it projects were left half-done AND owner is an attorney.
The property looked good from the exterior, it is a good area and is LARGE; however, before leaving, I suggested 2 more local (lesser) property managers who would be more likely to take property for management....
Don't be afraid to say no AND suggest other property managers.
PRO property managers will tell you that 90% of their client/hand holding time is spent on 10% of their owners....we expect PITA residents - we don't need PITA owners!!!
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
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Wallace: I agree with meeting the owner at their rental if possible. That way an intelligent discussion can take place about the condition of the property and the property manager can make a better rent evaluation. Many homes not maintaned and the manager needs to know this.
I would never take on a property to manage unless the owner can give a firm move out date. How can a property be marketed without know that? I would not waste the time.
The appointment part sales and part screening. Property managers have to get along with their clients and see eye to eye on how things are to go. We don't sell one service like sales. We are creating a relationship that has to work for both parties.
Nice post.
Great post Wallace! I definitely pick and choose! The only thing is, which may be backwards is... I do my research collect my up front fee and then view the property. Fact is when it comes to rentals, I don't give free info. In other words, As you know, rentals don't produce the same commissions as sales. Therefore, I don't share my marketing strategies, area rental rates, professional opinions about the property or area before receiving my up front fee because I need to know the owner is serious. If I go to the property and it's not as I seen it through the research performed or the owners description, I'll be more than happy to refund the up front fee and refer them to someone else.
Thank for sharing.
Jo Newton