9 Things to Keep in Mind When Hiring a Property Manager in South Florida
One of the advantages of being a real estate investor is the ability to do whatever you want, whenever you want. Since you don’t have to deal with the nine-to-five, you can handle your landlord duties from anywhere in the world, whether it’s from the comfort of home or miles away. Plus, if you hire a property manager, you don’t have to do a thing. You can put property management in South Florida on autopilot and watch as your rental income rolls in.
Unfortunately, some property managers consider your rental property as a way to earn easy money. In other words, they don’t have your best interests at heart. They’ll only do the bare minimum. So, how can you be absolutely sure that they can care for your property as properly as you?
Leaving your investment property in the hands of a stranger can be scary. To ensure that you receive the top services, we’ve put together a couple of considerations when choosing a property manager in South Florida.
Purpose of Hiring a South Florida Property Manager
What are property managers supposed to do, anyway? Before choosing the best South Florida property manager, you should understand the purpose of hiring one in the first place.
A property manager is someone that oversees the day-to-day activities involved in running a rental property. Property managers can be independent contractors or they can be employed under a property management company. In a nutshell, they take over the landlord’s tasks when they aren’t able to or when they simply don’t want to.
They typically handle:
Marketing and advertising
Tenant screening
Lease processing
Accounting and reporting
Conducting property inspections
Collecting rent
Coordinating maintenance
Communicating with tenants
Complying with local and state laws
How to Choose the Best Property Manager
The property manager you choose can affect the future of your property. If you choose correctly, you can generate a higher ROI and live the life you’ve always wanted. If you choose wrong, you’ll end up with losses, forcing you to give up your investment property. With that said, not all property managers in South Florida are created the same. Here are nine things to consider when choosing a property manager:
#1 Determine Your Needs
What do you want in a property manager? Do you want someone who can handle everything, or do you simply need some assistance from time to time? To determine the types of services your investment property needs, consider your present challenges. For instance, if you’re having a hard time filling vacancies, you should look for a property manager with strong marketing skills.
#2 Consider Local Experience
An understanding of the local market is the key to taking your property to greater heights. So, choose a property manager that knows what the South Florida market is like. They should know the local laws (e.g. licensing, building codes, etc.) and the market demographics. For instance, if the property is in a college town, they should be aware that it would be better suited to students.
#3 Check Their Vendor Network
Your rental property will eventually need repairs. By partnering with a property manager with an established network of vendors, you can take advantage of competitive prices for property maintenance in Florida. In addition, you can rest assured that your property receives the attention it deserves in a timely manner.
#4 Create a Pool of Candidates
Don’t sign a contract with the first property manager you can find. You should create a pool of at least three candidates that satisfy your criteria, such as location, rate, and so on. Find out as much information as possible and compare their capabilities and character. The goal is to go for a high quality property management or a candidate that you know can take care of your property properly. Not only will this help you find the right fit, but it will also give you negotiating power to get the best deal.
#5 Get Referrals From Fellow Landlords
Do you have friends that are also real estate investors? Ask them if they know of anyone whom they think can be trusted to take care of your property. If your colleagues can vouch for them, you can have peace of mind, knowing that you aren’t taking a chance on a complete stranger. And, depending on your state, you should confirm if your prospective property manager has the necessary licenses.
#6 Keep in Mind Their Track Record
The easiest way to tell if a property manager knows what they’re doing is by checking their track record. Of the number of units they’re handling, how many are vacant? What’s their eviction rate? How fast can the property management company fill vacancies? Remember, having several clients doesn’t always mean they’re capable property managers.
#7 Test Their Tech
It’s the 21st century. Your property manager must leverage technology that can support the administrative demands involved in running a rental property. These include rent collection, repair coordination, and more. Besides, going paperless is a huge benefit as it is safer than storing paper copies. Choose a property management company that’s up-to-date, and that uses applications such as tenant portals.
#8 Assess Their Skills
Your property manager should be able to handle all sorts of situations, especially since they’ll have to call the shots in most cases. During the interview, ask them questions that are designed to assess their decision-making skills, like:
How would you handle emergency repairs?
What would you do if a tenant had to be evicted?
How would you deny a rental application without violating the law?
How would you approach a tenant with unpaid rent?
#9 Trust Your Gut
Aside from looking at your South Florida property manager’s skills, you should also get to know who they truly are. If you end up hiring them, you’ll have to communicate with them constantly, so you need to establish rapport from the start. If you don’t think that you “click” with them, trust your gut. They’re probably not the best fit for you. If you two can’t get on the same page, you’ll face challenges down the road.
Conclusion
Choosing a property manager or property management company is a critical step toward your property’s success. Your chosen manager can make or break your property, so be sure to choose carefully. Remember these tips, and soon you’ll find someone that can take care of your property the way it should be taken care of.
