Choosing to make an investment in real estate, especially rental properties, can be an incredibly rewarding decisions and business can scale rapidly.
Many investors start by purchasing a single rental property and leverage those assets into multiple properties creating a compound return on their initial investments. However, more property means more of a need for management of those properties. And as appealing as investing in properties can be, it takes a special type of person to be equally as passionate about managing them.
Property management can be incredibly time-consuming and very stressful, especially for newer investors. That’s why so many investors outsource their property management as soon as they can. Hiring a property management company allows investors to focus more of their time to expansion as opposed to maintenance.
Unfortunately, not all property management companies are qualified to perform the job in a fashion that will allow investors to expand, or at very least, protect them from losses from their current properties. Here are 3 tell-tale signs that it’s time to find new property management services.
If your tenants feel like they have to track you down.
Your tenants need to be able to speak with a property manager for any issues that they have regarding the property itself. Time is of the essence; a skilled property management company will know how to handle these situations promptly and effectively.
When your neighbors complain directly to you.
If your neighbors routinely bring up issues about your property that continue to go unresolved. Issues that should have been taken care of by your property manager, or issues that would significantly improve the overall quality and value of your property and the neighborhood itself; it is time to bring in a team of professionals. Experienced property management teams will know how to identify and manage such instances before they ever become an issue.
If the lines of communication are down.
At the end of the day, your property manager works for, and should be reporting directly to, you. Whenever you need them to.Having a property manager “go rogue” isn’t all that uncommon (in fact, it probably happens a lot more frequently than most would assume), but you can’t allow it to happen for very long or you’re going to wind up with unhappy tenants and devalued property.
If your property manager isn’t communicating with you directly and/or regularly (or if the level of communication is lacking) it’s time to look elsewhere.
Investors always want to see a return, and the most successful rental owners recognize the ROI of quality property management. Investments always come with some amount of risk, but with the right team in place, property management does not be one of them.