Choosing a Property Manager - things to consider

[chrisrussell]

I have been a property manager for nearly 10 years now.
Over this time I have seen some good ones and bad ones. The bad has often outnumber the good unfortunately.

I have put together a list of questions, which, in my humble opinion, I think would be handy for someone considering a PM - I'll try to be as unbiased as possible!

• Does the PM specialise in PM?
  • Often have found many (not all) Real Estate agencies have a PM dept that is performing badly. This is because PM is not a main focus, just something the owner has tacked on to make some extra $$. It doesn't get much resource or attention.
  • Try a company that only does PM. They get 100% of the attention and resource.
  
  
• Does the PM have an audited trust account?
  • As I'm aware Real Estate agencies have to have an audited account (and so do their PM's?).
  • Make sure your independent PM has an audited trust account and is not paying staff wages from the same account your rent is going into.
  
  
• How long has the staff been there? (Staff retention).
  • This can be indicative of the management of the co. If the property manager has been there only 6 months or so, find out how long the previous one was there for.
  
  
• How many properties does the PM look after?
  • There are numbers of up to 250 per manager I have heard. It is dependent of how whether they do their own letting or not. But 250 is a lot. Less than 100 is preferable.
  
  
• Does the PM belong to a wider group that it is accountable to?
  • There are a number of organisations that a PM can belong to. The Independent Property Managers Association is a good one. They are a non-profit that has certain standards that are a benchmark for entry.
  
  
• Who is the main owner?
  • In property there are a number of rogues unfortunately. Find out who the owner is and do a quick google. Make sure they are not a ex-bankrupt rogue who has set up a company out the back of a failed property development.

Hope that helps! There are good ones out there!

[philipanz2014]

the features of good property managers

any ideas?

[Leftette]

Someone you can trust who is proactive but knows when something is large enough of an issue to contact the owner.

[philipanz2014]

Thanks. How to find one?

[Damap]

Trial and error. Most of them are not great. If you are in Auckland use Lovegrove Realty in Manukau. Sean is the man. I have had rentals for nearly 2 decades they are hands down the best I have ever had.
Word of mouth and trial and error is the only way

[philipanz2014]

Yes. That's right. But the cost of error is very high.

[Rosco]

- Trust account, so that your money is safer
- Qualifications? I'm not actually sure that Real Estate members are any better than others.
- Audit? Again I'm not sure this really protects you much
- Strict policy around arrears that they actually follow
- common sense and understanding of rental property investment. I think a good property manager needs to own some rentals!
- Prompt vacant property advertising, so that no down time
- Know the market rent, and make suggestions on how to add value to your property and rent return.

Ross

[chrisrussell]

• Does the PM specialise in PM?
• Does the PM have an audited trust account?
• How long has the staff been there? (Staff retention).
• How many properties does the PM look after?
• Does the PM belong to a wider group that it is accountable to?
• Who is the main owner?

[chrisrussell]

FYI
Median national housing rents rose at an annual pace of 5.3 percent in November,
slowing from a month earlier as rental prices continue to plateau, according to online
auction site Trade Me.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11374367

[Sharon]

Word of mouth referrals often the best from others that have thrived and survived the game. Don't be side tracked by a great website, flash logo or the big claim that an audited trust account means someone is fantastic. Where possible try to deal with an owner operator with a vested long term interest with a proven track record. There are some good ones around.

[PTWhatAGreatForum]

Approach them as a tenant and go with the one who tells the least number of 'untruths'.

[Patrickrh]

Trial and error. Most of them are not great. If you are in Auckland use Lovegrove Realty in Manukau. Sean is the man. I have had rentals for nearly 2 decades they are hands down the best I have ever had.
Word of mouth and trial and error is the only way

Hi, it seems Sean is not that old to serve you for 2 decades. Did you always use him?

[WestonSF]

- Good communication - Replies to your emails and phone calls promptly as well at the tenants emails and phone calls.
- Friendly and builds trust with the tenants, but doesn't become too friendly.
- Keeps on top of issues and keeps everyone updated.
- Makes sure rent is paid on time!
- Will find issues with the property before they turn into major issues costing more money to repair.