Do: take the job of hiring a property management team very seriously. Your property management company is your right hand man! Without them, your passive income venture could be not so passive. Check out our list of 5 questions you should ask when interviewing a property management team.
Don’t: try to micromanage them. If you’ve done your due diligence with hiring, let go of all of the details. You hired this team because they’re qualified to screen the tenants, and collect rent. Don’t try to micromanage them. Don’t come to them with a list of additional demands or tasks. They know what to do, and how to do it!
Do: get on the same page about communication. Some companies use email, while others use text messages, or snail mail. Always get clear information about which team member you’ll hear from in each circumstance, and the method of communication they will use.
Don’t: be too impressed by flashy software. Software isn’t the most important qualification when it comes to managing rental properties. In fact, we even work with a team that sends a paper, handwritten check via email. Software can be helpful, and organization is important, but we prefer that our teams be more focused on cash flow than minor details like that.
Do: take care of the things they ask you to fix. When your team contacts you regarding a leaky faucet, rattling heat vent, or a broken toilet, give them the green light to fix those issues. It might seem like some of these complaints are small to you, but to your tenant, the little things compile. When you anger your tenants, you make your property management team’s job harder.
Don’t: be greedy with pricing. Your team is already established in the market, and they know what price is appropriate. Trust their judgment and experience.
Do: get your account numbers right, and give plenty of notice if you need to change your banking info. Most property management companies will pay your rent via ACH. If you decide you need to change the account where your rent is deposited, give them a heads up in advance.
Don’t: fall prey to the allure of the first property. Many investors think they can self-manage when they first get started in real estate. But if your plan is to grow your portfolio, you’ll want to place this job into the hands of professionals.
Do: fill out all documents in a timely manner. When you onboard with a property management company, they’ll send you a packet of paperwork to complete. This stuff is important! It’s how you receive your payments and important tax documents.
Don’t: forget how crucial a property management team is to your success! Always treat them with respect, and do your best to make their job easy.