Property Management Guide
Whether you’re just starting to look for your first investment property or you already own a rental property; the success of your investment rests on how well it is managed. Effective property management ensures the smooth operation, profitability, and long-term success of your investments.
This guide aims to provide an overview of property management principles. It’s important to mention that it should not be considered legal advice. It is always advisable to consult with legal and financial professionals for specific circumstances and/or requirements.
Successful property management requires a diverse skill set, including knowledge of real estate, finance, customer service and legal matters. It requires ongoing learning and adaptation to changing market conditions and industry trends.
As the Owner of an income generating property, the first step is to identify your needs and goals for the property. This will help you determine if you should self-manage or hire a management company.
As strong as a property may seem, it cannot run itself. Managing a property requires time, structured policies, attention, preventative maintenance, record keeping, basic accounting, marketing, people skills and a plan. If you choose to self-manage, take into consideration the time you will need to oversee the daily operations of the property. Will you manage the property in your spare time in addition to your full time job and family activities? Will you have the resources to address any unexpected repairs or issues?
Ultimately, the decision to self-manage a property depends on your individual circumstances, preferences, and resources. Carefully weigh the pros and cons, and consider seeking advice from industry professionals or experienced property owners to make an informed choice.
If you choose to work with a management company, would you prefer working with a large company that has a large staff & multiple offices or a boutique office where you’re likely to receive more personal attention?
Whether you opt to work with a large or small office, in the end the company you hire should understand your needs and goals. Anyone can agree to collect monthly rent, coordinate trash removal and call a plumber when needed. What steps will the company take to improve the value of your property?
In making your selection, cost should not be the determining factor. While you don’t have to select the most expensive company you shouldn’t select the least expensive just to save a few bucks. Each company will vary in their cost. Some companies charge a flat fee based on the expected services. Others charge a percentage of the monies collected and monies paid. This kind of fee is a strong motivator to collect rents, pay bills timely and maintain the property rented.
In your determination, create a checklist to evaluate and compare the level of service:
- What does one company offer over the next?
- How comfortable did you feel expressing your expectations?
- Did the person truly listen to you?
- Will the person you met directly manage your property or will someone else be assigned to oversee the daily operations?
- Do they have experience managing properties like yours?
- What other services do they offer? You want to get a sense of their level of commitment to your property and anything else that may distract them.
- What systems do they have in place to effectively manage your property?
- How will they routinely maintain your property?
- What’s their preventative maintenance plan?
- How will they collect monthly rents?
- What are their office hours?
- What arrangements do they have in place to handle after hour emergencies?
- Will they be accountable?
- How knowledgeable are they about local regulations?
- How do they resolve disputes?
- What type of technology will they use to manage the property and communicate with residents?
- What types of records will they keep?
- How will they price rentals?
- How will they market rentals?
- What are their customer service policies?
- How often will they communicate with you?
- What’s their method of reporting?
- What legal services do they employ?
The management team you select will be an extension of your vision for the property. They will create the environment for residents, manage finances, maintain the systems that physically keep your property running, respond to emergencies, interface with city agencies and comply with regulations. In the end, the profitability of your investment will be affected by how well your property is managed so take special care to choose wisely.
Do you have a property that can benefit from our expertise? No property is too small or large for us to manage. TurnKey NY offers a broad range of customizable services tailored to fit an individual owner’s needs. Call or email us; we’re ready to help you get started.