What Should I Expect From a Good Property Management Company? By Darin Garman

What is the most important thing after you buy an apartment building? Property management.

Finding a good property manager can make the difference between 'make or break' in your investment, so it is not a decision to take lightly. In this article I would like to discuss what you should expect when looking for a good property management company.

Before we begin, remember this:

You are the owner. You are the "Asset Manager" and not the "Property Manager." If there is one sentence of advice I can give investors, it is this:

"Think like the CEO of your company."

Leave the day-to-day operations up to a good management company. Focus your efforts on increasing returns and improving property value. Focus on the big picture.

OK, let's move on. What should you expect from your property manager? What are they responsible for?

1. Marketing and Rental of Units

Of course our number one goal for your property manager is to rent units, and turn them as quickly as possible. You want to look for a company that does a good job keeping units full, and maintaining as close as possible to 100% occupancy. Be sure that they are using their advertising dollars wisely and monitoring market rents, so your rents will climb over time with the market.

2. Collecting Rents and Paying Bills

OK, once it's rented, someone has to collect the rents. A good property management company will be diligent here, enforcing late fees, and not letting residents get behind. Once a resident is behind, it becomes very difficult... then impossible to catch up.

Along with paying bills, I would look for a company with good reporting. Take a look at their reporting periods and how often they will be sending you a check. After all, that's the name of the game.

3. Property Maintenance

Next, you want to find a company that does a good job on maintenance. You will want to work with a company that does not sacrifice maintenance for profits. Keeping a property well-maintained while minimizing costs can be a challenge, but is not impossible. Again, the difference between a good and bad manager will show through - especially in this area. Attention to detail is an absolute requirement to be successful.

4. Enforcing Property and Resident Rules

Twp of the biggest mistakes I see are:

#1. Not having written resident and property rules.
#2. Not enforcing the rules that are provided.

A good property manager will not only have written procedural manuals, but also have written rules for residents to follow. Enforcement of these rules will make your investment run smoother, and keep your good (paying) residents happy.

By the way, if you liked this article, you will probably like my new report and video series, "The 7 Biggest Mistakes Investors Make When Buying Income Property."