Hiring the right property management partner for your real estate business can seem time-consuming. For property managers, that's more true. They are the ones constantly doing the tenant interaction and becomes the face of the company. Many of these people can be highly qualified, but finding the right suited match for your business needs is essential. As a real estate business owner, it is a basic necessity to have a smooth property management plan.
To make this lengthy process easier for you, we have compiled a list of essential questions you must ask your property management partner before onboarding.
Why hire a property management partner?
If you are paying money to get your property managed then you need to ensure get good value for your money. No real estate business hardly has 10 - 15 properties under them, most of them deal in hundreds of units. Keeping track of all of these is a daunting task and needs a property manager who can work in a fast-paced and constantly changing market. That is why hiring an experienced property management partner is the best solution to streamline the managing process.
Property managers and agents need to be constantly updated about the market be extremely responsive. Why? National Association of Realtors (NAR) research reports says more than 98% home buyers want someone they find reliable. Among these responders, 9 out of 10 home buyers want their agents to be updated with market rates and property issues.
7 key questions to ask a potential property management partner
So, how do you decide which property managing partner is the best fit for your business that goes beyond their qualifications on paper? Here is a carefully curated list of key questions you can ask a property management partner before getting them on board.
How much experience do they have in handling real estate properties?
The right qualifications are just the beginning. You also need to ask your property management partner how many years of experience they have in handling properties and projects. Real estate property deals are of many kinds, from single residential homes to multi-family homes to restaurants, malls, warehouses, hotels, properties can vary. Every type of these businesses need different business abilities and experience. You need to make sure that your partner has specific experience in the field that your property dealings happen in.
What kind of property management plans do they offer?
Property management has many different needs, rent collection, tenant onboarding, tenant eviction, common area maintenance, property listings, tenant screenings, sales, home tours and much more. Before you partner up with a property manager you need to tell them your business needs and also get a holistic understanding of which of these services they offer under their purview. You will lose out on money if you hire a property manager who does not offer all the property management plans you need to smoothen your business process overview. The strategy and leadership team at your business needs to think this through before making a decision.
How are the property management fees divided among parties?
If you are a real estate business owner or landlord and get a third-party property management partner, they will take a portion of the management fees. Before cracking a deal, all stakeholders must agree on the share of management fees they are entitled to with each sale and each customer onboarding.
Do they use any property management software to automate the work?
Property management data collection is a necessity for any business with growth plans. Getting customer data, feedback, making logs and registering these information is crucial to understand buying patterns and improvement areas. According to UNITrends market reports more than 94% of companies that suffer from data loss do not recover from it and have to call for bankruptcy.
These can be solved with the use of latest property management software like Yardi project management or MRI software services. From data collection to rent collection or even accounting and budgeting and forecasting work can be automated with these software. Ask your property managing partner which software they use to streamline your work and ensure you get to leverage the best tech in the market.
Ask if they are real estate investors
Many property management firms and staff are real estate investors and property owners. As a fellow real estate business owner, you need to know who you are dealing with before making a move. Be upfront about it; you can not afford to lose out on business if your property manager themselves own properties and make sales at your expense without sharing profits with you.
Ask if they do the marketing for properties listed with them
Property management also includes sales, which should include the marketing o listed properties. You must ask if your partner provides marketing strategies for your units to drive sales and what they charge for these extra services.
Ask if you have any say in the lease agreement terms & conditions
As a landlord or real estate owner, you can have a say in the terms and conditions of your lease agreement. So, you need to ask your partner how much you can influence the agreement terms in a lease when they are managing the properties on your behalf. Ensure this to stay in control of the happenings in your properties even if you do not mingle with them every day.
What’s next in real estate property management?
Real estate business owners need to get the best of both worlds to taste success. Property management includes human resources and a good technology selection to make the process more inclusive and quick.
At Assetsoft, we help your property managers onboard the latest property management software into your system to ease the process. We can even provide you customized features to let you manage your properties much better with the latest software in the market. From employee training for the software to completing SaaS integration, our team of technology experts do it all.
Talk to us to know more!