How To Hire a Property Manager You Can Trust
It’s 3 a.m. and you awaken to the persistent buzzing of your phone.
Frustrated at the interruption, you answer. It’s a tenant in your rental property.
A pipe has burst and the bathroom is flooding.
You rush over to the property only to find that the flooding is simply coming from an overflowing toilet. You turn off the water supply and unclog the toilet.
As you stumble back into your bed you quietly mumble a vow to yourself –– it’s time to hire a property manager.
A property manager can make the difference between owning an investment property that you only think about when the income rolls in on the first of the month and one that is constantly draining your wallet and energy.
If you’re asking yourself, “Should I use a property manager to take some of the weight off my rental property?”, this guide will walk you through what a property manager can do for you and seven tips to hire one you can trust.
Table of Contents
- What Does Hiring a Property Manager Mean for Your Investment?
- What Do Property Management Companies Typically Take Care Of?
- Why Hire a Property Manager?
- 7 Tips for How To Hire a Property Manager You Can Trust
- PEGGY HOAG REAL ESTATE Property Management: Caring for Your Investment With Experience and Integrity
What Does Hiring a Property Manager Mean for Your Investment?
Whether you own one rental property or ten, you’ve got enough on your plate as it is.
The time required to …
- Take calls
- Handle property issues
- Vet and manage tenants
- Oversee the daily maintenance of the property
- Collect rent
- And more
… can quickly add up to a full-time job.
Hiring a property manager can help you protect your real estate investment and passive income and save you…
- Stress; and
… that comes along with being a hands-on landlord.
With over 30 years of experience in luxury real estate in the greater Portland area, the services at PEGGY HOAG REAL ESTATE Property Management can free you to do other things with the peace of mind that comes from knowing your rental management is in the hands of professionals.
What Do Property Management Companies Typically Take Care Of?
Property managers are often backed by a property management company that rents and manages your property in exchange for a fee, typically between 7-10% of the monthly rent.
Property management companies handle the daily operations of a real estate investment including, but not limited to:
- Advertising the property
- Screening potential tenants
- Showing and leasing vacant units
- Executing lease agreements
- Collecting and depositing rent
- Managing maintenance and repairs
Why Hire a Property Manager?
A property management company is responsible for an array of services and can help you:
- Grow your business
- Free up time; and
- Increase returns
Additionally, hiring a property management company can offer advantages like:
- Expertise – A good property manager will have a vast knowledge of Fair Housing Laws along with experience in managing rentals and even property taxes.
- Maintenance Contracting – Maintenance issues can be daunting, especially when a tenant calls unexpectedly. It’s a property manager’s job to respond to these calls quickly. Some property management companies even have 24/7 call centers. A good property manager will be equipped with a list of multiple vendors ready to tackle the job, saving you the time and hassle of finding the best vendors. Under Oregon law, a property manager can even perform maintenance work on a property without a construction contractor’s license.
- Boots on The Ground – Owning a rental portfolio is complex and being outside of the city or state in which it is located can make management nearly impossible. Many investors who live in a different location than their property, or those who have a large portfolio, hire property managers to be the local contact for their rentals.
7 Tips for How To Hire a Property Manager You Can Trust
#1: Evaluate the Property Manager’s Work Model
After you reach out to a property management company, you should receive the property management introduction.
Review this brief to determine if their business model approach addresses your needs and concerns.
If you’re looking for a hands-on property manager who is invested in your property, seek someone whose work model appeals to you.
#2: Ask for References or Check Reviews
When talking to property management companies, it’s important to remember that you are interviewing them for a job.
Don’t be afraid to call other landlords who are currently working with the property management company you’re considering. This is your opportunity to collect information you might not otherwise learn.
Ask what types of services the management company provides to them.
Check to see if they’ve had any issues with the management company and, if so, how these problems were handled.
The best information you can gather about a property manager will be directly from the landlords already working with them.
#3: Check Their Qualifications
Rental management services must comply with certain requirements that vary from state to state.
No matter where you live, the management company must have a licensed principal broker overseeing all management because they are acting on your behalf to lease and manage your rental property.
In the state of Oregon, all property managers must:
- Be at least 18 years of age
- Have a high school diploma or General Educational Development diploma (GED)
- Submit to a background check
- Pass a 60-hour pre-license course at an approved real estate school
- Pass the licensing exam; and
- Register with the Oregon Real Estate Agency
Additional regulations may differ by state, with some states requiring HOA management licenses or property management licenses to run a property management company.
#4: Ask Good Questions
Before you interview property management companies, it’s helpful to make a list of expectations you have for the company you hire.
You’ll also need to ask the right questions to make sure they know how to handle common scenarios.
This will help you avoid unexpected surprises in the future if you’ve already outlined expected duties and asked about issues that typically come up.
#5: Pay Attention To Their Communication Skills
Communication is key when it comes to management.
When contacting potential property managers, pay attention to:
- How quickly they return calls or emails
- How much knowledge they have
- How well they answer your questions; and
- If they interrupt you while you’re speaking
This is a direct reflection of what you and your tenants will be dealing with if you choose to hire them.
Nothing is more frustrating than trying to work with a property manager who refuses to communicate with you.
If you get the sense that a property management company is more interested in landing your property than delivering the best service, keep looking until you find a company that will put your needs first.
#6: Meet the Property Manager at Your Property
Once you’ve completed your preliminary interview, invite the property manager to meet you at your property.
Meeting at the property can give the manager an opportunity to survey the property to get a better idea of what your needs will be and make suggestions that may make your life easier.
A good property manager may be able to spot simple improvements that you can implement to increase your property value or avoid problems in the future.
#7: Consider How Many Properties They Manage at a Time (This Is Key!)
What It Means To Work With a Large Property Management Company
While large property management companies may offer attractive benefits like 24/7 call centers and lower fees, it’s important to keep in mind that the largest companies often have many more properties.
The more properties they manage, the harder it becomes to keep close track of what’s happening, leaving issues to fall through the cracks.
Managing too many properties can also get in the way of carefully vetting tenants. A large property management company may be more focused on filling the vacancy for income and less focused on taking the time necessary to find the right tenant.
Be aware that these types of problems often end up costing you more money in the long run.
Advantages of Working With a Smaller Property Management
Smaller property management companies can offer a more personal working relationship with their clients.
Focused on long-term partnerships, smaller companies often have more skin in the game building trust with property owners.
That’s just what you get with PEGGY HOAG REAL ESTATE Property Management.
Along with hands-on quality care, we take on no more than 10-15 luxury rental properties in the greater Portland area at one time.
This holistic approach allows us to build meaningful long-term relationships with the owner, from property management to buying or selling in the future.
PEGGY HOAG REAL ESTATE Property Management: Caring for Your Investment With Experience and Integrity
At PEGGY HOAG REAL ESTATE Property Management, caring for your investment with experience and integrity is our number one priority.
A family-owned and operated company, PEGGY HOAG REAL ESTATE has been a member of the real estate industry since 1991.
Our longstanding experience selling and managing luxury real estate properties in Oregon and Washington means we know how to …
- Market; and
… your property. We also keep up with the ever-changing landlord-tenant laws.
Managing your own property can cost you more time and money than it’s worth — don’t make that mistake.
Let PEGGY HOAG REAL ESTATE Property Management help you:
- Minimize liability
- Reduce maintenance expenses; and
- Avoid under-renting your investment property
Please feel free to reach out to us today.