Keys to Multifamily Asset Management for Investors
So with your property manager then what are some red flags that you would that you would want to watch out for and maybe might give you some indication it’s time to find someone else?
Yeah. Red flag number one is that you’re getting complaints from the residents if you do the annual polls with your residents about how the property manager is taking care of them, how they’re handling complaints, how quickly are they getting repairs done. Things like that. Excuse me. Some of those things are out of their control, especially if they’re hiring contractors, because sometimes the contractors are just busy and they can’t get out there any faster. But other times it is in their control. You want to make sure that they care about the property and that they’re taking care of the property and that you see your income, right? Again. “What are you going to do to help me increase the value of the property?” A good property manager is proactive. They don’t come to you or you don’t go to them and say “Hey, we think we should raise the rent.” They should be coming to you and saying “Hey, we’ve done what’s called a lease survey or a rental survey and we’ve gone out and surveyed all the other surrounding competitive properties and we believe you can raise the rent x amount of dollars a month because of the survey that we did.” That’s what a good property manager should do. “We think we should change from this service provider to that service provider because we believe we’re going to help save you an extra 20% a year on expenses.” That’s what a good property manager does. Yeah. If you constantly have to go to your manager and say “Hey, can you go do a rental survey?” And of course, that’s one of the questions you ask them before you hire them is “Can you provide me with a rental survey?” And a lot of my students will say “Well, you know what? Well, why would a manager give me a rental survey when I haven’t hired them yet?” It’s easy. They want you to hire them and that’s why they’re going to give you the rental survey. But. They should be coming to you with that rental survey, right? You shouldn’t have to keep going to them and prodding them to give you the rental survey. They should automatically be giving it to you at least once a year, if not twice a year. As a matter of fact, I’ve got a student here in Denver who actually is a property manager. And, of course, she manages A class property. She does a rental survey every month for her owners. Every single month she goes into her software because the way the software is set up, she can actually go out and check competitive properties right through her software and come back and say “Hey, this is what the average is in the area. You should raise the rent $25, $30, $5000 a month.”
Yeah, so if they’re not if you’re not getting those things
Looking for somebody else.