Finding the Perfect Property Manager
Finding the Perfect Property Manager
January 2023 Substack Exclusive
By Shamontiel L. Vaughn, Go4Rent Staff Writer
The day-to-day duties of a landlord are a bit like a seesaw. On some days, the tenants want nothing. On other days, they won’t stop calling. And as with most professions that require person-to-person communication, soft skills are a must. But for property owners who realize fairly quickly that they’re more interested in the residual income and investment and less in the rental duties, this may be a good time to find a property manager.
Jonathan Coleman, a licensed mortgage broker since 2004 and property manager since 2008, has some tips for how property owners should navigate the property manager hiring process.
Tip One: Ask About the Rental Collection Process
A quality property manager won’t be depositing tenants’ rent (or condo assessment fees) into their own bank account. There should be a payment processing platform that keeps track of incoming payments, including any late fees or fines due.
There should also be an escrow account separate from the rental collection account to avoid intermingling funds.
“As a landlord, you're required to let the property manager hold a certain amount of funds for small repairs,” said Coleman.
Tip Two: Investigate How Repairs Are Documented and Handled
Depending on the condo board or landlord, they may have their own on-call maintenance specialist or repair person. However, if all maintenance is streamlined through the property manager, a few immediate details need to be clarified.
Are maintenance requests honored on weekdays only? Do they cost more on weekends?
Are maintenance requests documented via phone only or is there a website to submit requests?
How often are these requests monitored? What is the average turnaround time for completion?
Are the requests handled by one person or a list of on-call contractors?
Will it cost extra if the property manager needs to arrive with the repair person to explain the repair needed? How much?
“When the tenant has a repair request, they want that repair addressed immediately,” said Coleman.
Tip Three: Clarify Understanding and Experience for State Laws and Evictions
In Texas, state law requires that a landlord must make repairs if the problem is “materially affecting the physical health or safety of the ordinary tenant.” This can range from plumbing and electrical wiring to prevention from mold and asbestos.
However, before a landlord is required to make any repairs, tenants must be current on their rent. They should report the problem to the property manager who is collecting the rent. State law gives property owners (or property managers) a “reasonable” turnaround of seven days.
Recommended Read: “Repairs: Who Pays for What?”
Florida also has a seven-day turnaround, but tenants can withhold rent if repairs are not made after that. Additionally, Florida state law gives tenants the option to move without paying owed rent if those legitimate repairs were never made.
Property managers in Texas and Florida must be able to identify which is which when it comes to state laws, repair needs and releasing security deposits in the event of a move-out. That’s in addition to other less legitimate reasons for evictions (ex. violating the no-pet rule or trashing the rental).
“Luckily for us, in Texas, there are classes you can take, specifically for property management, and property management certification that you can obtain,” said Coleman. “You want to make sure that they are a part of the National Association of Residential Property Managers.”
Tip Four: Navigate Their Website, Including Tenant and Landlord Portal, for Effectiveness
Take a look at the property manager’s website. Is there a portal for the landlord to log into? Is there a separate one for tenants? Is there information about insurance? Is there public information about which states the property manager is licensed to work in?
“Some states don’t require a license,” said Coleman. “But, in Texas, you have to be a licensed Realtor in order to conduct some property manager activities.”
Quality property managers will usually have information about specifics like credentials, insurance and history in their “About Us” page. Additionally, they will make sure to troubleshoot any error messages to avoid potential problems with collecting rent or maintenance record-keeping.
Tip Five: Make Sure Property Manager’s Communication Preferences Match Landlord’s
“Property managers can keep landlords up to date on every little aspect of what's going on with that property,” said Coleman. “If that level of communication is as overwhelming to you as a tenant contacting you all the time, then you will need to make that known with the property manager beforehand.”
Additionally, some property managers are tech savvy. They’re likely to request digital signatures, online payment options, apps to scan documents, and communicate via email and text. Scheduling a meeting with them will more likely be through a Calendly-style reservation.
Others rely on a paper trail—file cabinets, copiers, folders, postage stamps, check dropboxes for rent—and will insist on in-person meetings instead of virtual video calls. They may have a receptionist or assistant call to schedule any necessary communication.
For landlords who prefer more-tech savvy property managers, not just for themselves but for the tenants, these work preferences may be deal-breakers.
Tip Six: Understand and Agree With Cancellation Process
All property management contracts should have some type of cancellation option. On average, it’s 60 days. Be wary of excessive cancellation fees that will tie the landlord to an agreement that just isn’t working out or gives the property manager too much leeway on “not getting the cancellation request.” There should be definitive language about an email request, certified mail request and/or another documented request that can be tracked by the date.
This way, should that date come and go and no improvements were made, both parties can amicably separate their agreement.
When the Right Property Manager Is Hired
In a perfect real estate world, these six tips will create a healthy, long-term agreement between the landlord and the property manager the first time. In the real world, sometimes business relationships are a lot like dating. Sometimes it works. Sometimes it doesn’t. But by using these tips to keep open communication along the way, eventually that landlord will find “the one.”