Not all property managers are equal. Truer words are seldom spoken! What’s even more true is this: a good property manager can make or break your valuable investment dollars. Yikes. That’s a whole lotta control, isn’t it? If you struggle with letting go of the reigns, you’re in an even more vulnerable position. How do you know who to trust? What criteria should you use? At Hipster, we believe that finding an investor-friendly property manager is your first step toward successful long distance investing.
Ask: What is a Cap Rate?
Your property manager should know some investing basics. After all, if they deal with investors like you day in and day out it only makes sense that they know some of the lingo of the trade! Ask your property manager or potential manager to explain to you what a cap rate is. They may not answer perfectly, but they should have some idea of what this investing standard means!
Learn: Do They Walk the Property Often?
Ok: you may be a hands-off investor but you don’t want a hands-off property manager! Find out how often your potential property manager actually walks the property. Your PM should be your eyes and ears so you don’t need to worry about a small issue blowing up into a much bigger one. Once a month or once every several weeks is a good rule of thumb for the management team you end up working with. You should also receive thorough reports that help keep you in the loop.
Investigate: Their Managed Properties
It’s not that hard to figure out which properties your company is managing. You can find out from listings on their website and area signage. If you’re local to your company, take a drive by and check out their other properties. Are they clean and well-managed? Is everything in order? Do the tenants seem respectful? They say a picture tells 1000 words and in this case it certainly does!
Your future property manager is every bit as important as the other aspects of a potential deal. It never hurts to scout out a good property manager in a certain area ahead of time! You can also work with a company like Hipster Investments to help ease you into the process of finding a good manager for your awesome new investment property! Remember that hiring a property manager is, in many ways, similar to the process of hiring an employee: interview, investigate and get as much knowledge as possible before you take the big plunge…