9 Signs of Professional Property Management

There are times when it may feel as though it is difficult to get professional property management. And if you've already been burned by a property management in the past, it might be difficult to believe that a new one would provide the same level of service and care for your investment this time around.

The last thing you want is to have to think about your investment property while you're trying to get some rest at night since someone else is managing it. Your peace of mind and the quality of the earnings on your investment property will both improve when you hire an experienced property manager.

What characteristics should property management have, and how can you tell whether the one you have hired is legitimate?

In this piece on our blog, we will discuss the nine telltale signals that a property management company is professional. That way, you'll know what to look for in a property management firm so that you can determine if the individual managing your rental property is an active participant who takes initiative or a passive observer who does little more than nothing.

1. They have good communication skills

If you choose a professional property management company, they will know when it is necessary to keep you informed about your investment property and when it is unnecessary to do so. In addition to this, they do not leave you hanging when you are attempting to make contact and give a response within a decent amount of time.

A decent rule of thumb is that you should receive a reply no more than two hours later. Even if the response is as simple as "I'm looking into this," knowing that you've been heard and acknowledged is quite helpful.

A property manager who is able to communicate well is beneficial to you in the following ways:

• Keep tenants pleased
• Not feel like you're being kept in the dark
• Obtain more accurate estimates for the upkeep of your property.
• Find peaceful solutions to conflicts and maintain order.

Testing this is one of the best things you can do before signing up with a reputable property manager, and it's something you should definitely consider doing. If it takes them more than a day to respond to you after you've let them know that you're interested in something, it's likely that they won't be particularly responsive in other situations either.

2. They're well-organized

Unfortunately, despite how appealing it may sound to have a property manager who is entirely devoted to the management of your specific property, this will not be the case. The real estate industry is a very active and hectic one. As a result, you should anticipate that your property manager is juggling many properties at any given moment, each of which has a different set of owners and tenants.

Did you know that the typical traditional property manager is responsible for the autonomous management of as many as 150 properties? To make something like this happen with these kinds of numbers, you absolutely have to be an organisation ninja.

It is absolutely necessary to have a database of properties that is both easily navigable and comprehensive. However, having a well-organized filing system for documents is also essential. A property manager who makes use of technology will be in a better position to deal with this situation.

It would be beneficial if you asked a potential new property manager about the tools they use to help them remain organised and on top of everything related to the management of the properties they oversee.

Without it, your property manager would have a difficult time keeping up with the tasks and requirements they face on a regular basis. Because of this, you can be certain that they will make an effort to attend to your needs.

You need to consider whether or not your property management has presented you with inspection reports that detail the state of the various aspects of the property. If your tenants have contacted you because the property manager hasn't been able to keep up with the requests, then it is possible that it is time to explore finding a new property manager.

3. They're good with technology

If you have a property manager that is proficient in the use of technology in property management, then this is wonderful news for both you as the owner and for your renters. However, this is only the case if you have a property manager.

The real estate management industry is rapidly transitioning into the digital era, and a growing number of new model property managers are entering the market with the intention of utilising technology to provide superior solutions. Maintenance requests, overdue rent payments, and lease renewals are just some of the operational details that can be easily monitored and addressed in a timely manner thanks to this capability.

Having said that, the human element of property management should not be replaced by technological solutions. It is included in order to enhance the experience.

Property managers that are professionals should adhere to the same guiding principle. It is a strong indication that you should switch property managers if the technology utilised by your current property management firm causes you unnecessary stress and causes chores to take significantly more time than they should.

If it makes it easy to gain a glance into your property and helps you keep in contact with others, then they are doing what they should be doing.

4. They have the knowledge they need to help you succeed

It is possible to determine the legitimacy of your property manager by looking at their level of knowledge. Because of their skill and understanding in the real estate market and property market, you should be well prepared for a successful voyage in real estate investing. In the end, competent property managers either already possess the answers you're looking for or are aware of where to go for them.

You should look for a competent property manager who possesses the following two sorts of knowledge in general:

• Local market knowledge
• Legal knowledge

Let's get into the weeds of them.

Local market knowledge

Having a property manager on your side who is knowledgeable about the neighbourhood rental market is a simple method to give you a leg up on the competition. It will indicate that they are aware of:

• How to set your rental home apart from the competition in your particular region
• The optimal monthly rental rate to list for your rental property, ensuring that you are not overcharging or undercharging potential tenants.
• What amenities are desirable to prospective renters in the area and how can you incorporate those into your property to maximise your returns?
• How to entice prospective renters by means of a targeted advertising strategy
• When is demand at its lowest — that is, when should you hold off on raising the rent or looking for new tenants?

If you choose a qualified property manager who possesses this level of expertise, you can rest assured that your vacancy rates will remain as low as humanly possible.

Legal knowledge

When things hit the legal fan, a property manager's duty and responsibility is to be present. This is one of the most significant roles and responsibilities of a property management. You put yourself at jeopardy of getting caught up in a legal bind if you do not have a competent property manager who is familiar with the ins and outs of real estate legislation.

Let's say you've decided to evict one of your tenants. Are you familiar with the rights and obligations that come with being a tenant in your state? The amount of time that you are required to give notice? These are just some of the many responsibilities that reliable property management will take care of for you.

Professional property managers are able to provide answers to any legal questions that you may have.

5. They're personable and make you feel at ease

Can you even fathom having someone like Scrooge oversee your property? A property manager spends the majority of their time interacting with members of the public. Therefore, you should look for someone who is able to get along well with people and cultivate positive relationships with tenants.

To be able to interact with property owners and renters in a cordial and upbeat manner is essential to providing professional property management services. It entails being in possession of the great customer service talents that are necessary in the formation of trustworthy connections.

The more harmonious the relationship between your tenants and your property manager (and, by extension, between yourself and your tenants), the greater the likelihood that:

• That your tenants will choose to continue renting from them
• There is a good chance that people will refer your home to their friends and family.
• You can expect to be informed of any essential maintenance or repairs within a reasonable amount of time.

6. They're assertive when the situation calls for it

When it comes to real estate, things aren't always going to go according to plan. There will almost certainly be some bumps in the road here and there. You are going to want a property manager who is capable of rising to the occasion and making decisions when something like this occurs.

Your property manager should constantly demonstrate respect and compassion to your renters. This should go without saying. However, at the same time, they need to have the ability to modify their appearance and behaviour in accordance with the circumstances.

It could be a challenging tenant or a contractor that isn't doing a thorough job. In any case, the management of your property needs to be aware of when it is appropriate to be accommodating and when it is appropriate to be aggressive.

Inquiring about a copy of the correspondence between your property manager and tenants will reveal to you right away whether or not they have that determined spirit.

When it comes to rent arrears, providing high-quality property management includes being aware of when to be strict with a renter and when to be more lenient. And in the event that the tenant is obviously in the wrong but continues to refuse to vacate the premises, the property management is not hesitant to demonstrate their strength and make the correct choice.

7. They have the experience to back up their decisions

There is no doubt that devoting a significant amount of time to academic study will provide you with a wealth of information regarding your chosen field. But let's be honest: information is meaningless in the absence of experience. In particular, this is the situation with professional management of real estate properties.

You should look for a real estate agent who either has a substantial amount of personal experience working in the field or is a member of a team of highly experienced property experts.

When searching for a new property manager, one of the most important characteristics that property owners look for is experience, and there is a solid reason for this.

Your property manager's experience will ensure that he or she is a seasoned veteran in the following areas:

• Managing difficult tenants as a challenge
• Addressing problems with repairs and upkeep and obtaining competitive bids
• Performing the necessary checks on a regular basis
• Taking care of day-to-day responsibilities such as collecting rent

Asking the question "How many years have you been in real estate?" is a simple way to learn about the level of experience that your property manager have. How many different kinds of properties do you manage? Ask them how they intend to make up for the fact that they haven't been in the role for a sufficient amount of time if they don't have the necessary experience.

8. They take accountability

Coming clean about your transgressions is a significant component of having a trustworthy reputation. Because we've all been there, we are well aware that this is not the simplest task to complete. Accountability, on the other hand, is an absolutely essential component of competent property management.

Problems do develop. It is extremely likely to occur. However, your property manager should never try to shift blame or avoid taking responsibility for their mistakes. They should always own up to their actions.

Additionally important characteristics of high-quality property management are honesty and openness to communication. You should accept the reality that your property management is only a flawed human being, but you shouldn't accept it if they don't take responsibility for their errors. You should come to terms with the fact that your property manager is simply a flawed human being.

9. They have an investor mindset

After everything is said and done, you want your property manager to assist you in increasing your returns on investment. After all, you are a business investor. As a result, you are going to want to choose a property manager who will handle your investment as if they were also involved in the real estate investment business.

If you hire a qualified property manager, they will provide you with suggestions on how you may increase the profits you make from your rental property. They will, to the extent that it is practicable, look to:

• Maximise your rental yield
• Reduce the number of vacant units.
• Maintain control of any maintenance concerns before they become expensive.
• When it's in the budget, raise the rent.
• Using your knowledge of the neighbourhood to increase the value of your property

However, they will also keep your investment strategy in mind and check to see that your property is being taxed in the most efficient manner possible. A qualified property manager will be familiar with the concepts of positive gearing and negative gearing, as well as the strategies that may be used to maximise return on either type of investment.

If a property manager does not have the mindset of an investor, this could easily result in negative cash flow. Therefore, maintain a close check on your bottom line to determine whether or not they have the instinct of an investor.

Do You Need a Local Property Manager? Local vs National Compared

The majority of property owners in Australia are of the opinion that local property management should be prioritised above all others. You may have asked a coworker for advice on what to look for in a property management firm, and they may have responded by stating that locality and experience are two of the most important aspects, particularly when it comes to finding suitable tenants.

The equation appears to be straightforward. A local property manager is more focused on a smaller area, will have more expertise and knowledge about your advertising in your neighbourhood, and will have more time to manage your property because they are a smaller agency with fewer clients, right? A local property manager also has more time to manage your property because they have more expertise and knowledge about your advertising in your neighbourhood.

It has come to light that local property managers may not always be the optimal choice for you and the rental property that you own. Local lease managers and national property managers each have their own advantages and disadvantages, all of which should be taken into consideration before selecting the type of management that will best meet your requirements.

We will assist you in making that selection by contrasting national property managers with local property managers and discussing the circumstances under which you should work with either one.

Using a local property manager

Many people assume that selecting a property management who is located in your area ought to be your top consideration. It is possible that someone has advised you that hiring an agent who is familiar with the neighbourhood is more important than everything else.

But is this really the case?

To make your life easier, we have outlined both the benefits and drawbacks of local property management in order to assess whether or not "local is king" is a phrase that really describes the situation.

Pros and cons of using a local property manager

Pros

They are well-versed in the local community as well as the market, which makes it easy for them to tailor your property to the specific needs of the target audience.

They also have the potential to obtain confidential information or relationships. If a property's owner is thinking about selling, for instance, this could be a fantastic opportunity for you to make an investment.

They have a very simple process for doing rental inspections. If they are in the neighbourhood, they will also have the ability to rapidly respond to any call-outs that are placed.

Better better, if they frequently pass by your rental home, they will be able to see any possible wrongdoing to the property and take appropriate action.

They are familiar with the local merchants. The majority of the time, local property managers have established working relationships with trustworthy local contractors and craftsmen.

They oversee a smaller number of properties. Because of this, they typically have more time to devote to prioritising your property and your renters in a manner that is more individualised. It is true that doing so will result in increased expenses.

Cons

They are little, and being a little fish in a large body of water comes with a few inherent drawbacks.

They won't have as much money to invest in their procedures and won't have as many resources available to them as a national property manager because they function on a much smaller scale.

They are typically more expensive. The property management fees that your local leasing manager will charge you are normally between 7 and 10 percent of your monthly rent.

They also have a tendency to employ an older model for property management, which means that there are generally additional surcharges for things like administrative fees, credit checks, and other such services. It has a tendency to accumulate.

It's possible that they lack prior experience. They only handle a limited number of properties due to the magnitude at which they operate.

This indicates that if your particular property manager has never dealt with problem tenants in the past or is unsure when and how to evict a tenant, they can quickly fall behind, make mistakes, and lose credibility with your tenants if they do not have previous experience with either of these scenarios.

Using a national property manager

Now that you are familiar with some of the advantages and disadvantages of working with a local property management, we will proceed to do the same thing for the alternative choice of working with a national property manager.

Over the course of their existence, national agencies have earned a reputation for being overly bureaucratic, sluggish to respond, and lacking in flexibility. In addition, you want someone who is familiar with the neighbourhood to manage your rental property.

The fact of the issue is that national property management is an alternative that is quite legitimate for a lot of people. These days, a large number of federal agencies have developed ingenious solutions that enable them to provide you with services in a more timely manner while ensuring that you do not lose access to the benefits of local expertise.

Pros and cons of using a national property manager

Pros

The majority of the time, national property managers will charge you less for their services because they operate on a much larger scale, which lowers their overhead costs.

They possess a wealth of resources as well as a great deal of skill. Because of the scale at which they operate, companies have greater resources available for spending, including more thorough tenancy databases.

In addition to this, they frequently have at their disposal platforms that are specifically designed for the purpose of recognising patterns and gathering data in order to obtain market insights.

Even if you have many properties located in different states, they will assist you in remaining up to speed on the regulations and in complying with them.

National property managers typically come up with creative ideas in order to compensate for their lack of familiarity with the local market.

So, should you use a local or national property manager?

It is essential to have local knowledge and experience; yet, you must be aware that having basic destructive processes will always be more valuable than having any local understanding.

For this reason, the first and most important thing that you need to do is determine whether or not the property management firm is any good.

Aside from that, we'll now walk you through the circumstances in which you should go with one of the two choices.

• If you believe that you could benefit from the local expertise and the more personalised approach offered by a local property management company, then you should consider using one. Keep in mind that it is imperative that you have an understanding of what exactly is covered by the property management costs. It is not going to be worth it if you are required to spend a lot of money for a relatively small amount of service.
• There are property managers operating on a nationwide scale who may provide you with ingenious methods to access local experience; hence, you have choices.
• If you own many investment properties, you should work with a property management that works on a national scale. You are not going to have a good experience if you hire a single property manager for all of your properties. Property managers that rely heavily on technology are especially skilled at making the experience of having many rental properties feel more like owning just one.
• If you're looking to cut expenditures, using a nationwide property manager is the way to go. Getting a national property manager who charges more reasonable prices is an excellent alternative to consider given the tendency of local agencies to charge significantly higher fees.

You should never let the question of whether or not the property management company is local or national take precedence over the quality of the manager that you choose to oversee your investments in real estate.

You will considerably improve your odds of finding an agent who will treat your investment property with the utmost care if you put in the effort and investigate the procedures of the agency in which you are interested in working.

Summary

The last thing you want is to have to think about your investment property while you're trying to get some rest at night. Your peace of mind and the quality of the earnings on your rental property will both improve when you hire an experienced property manager. Here are nine telltale signals that a property management company is professional. Despite how appealing it may sound to have a property manager who is entirely devoted to the management of your specific property, this will not be the case. A typical property manager is responsible for the autonomous management of as many as 150 properties at any given time.

They should have a well-organized filing system for documents. Property managers that are professionals should adhere to the same guiding principle. It is possible to determine the legitimacy of your property manager by looking at their level of knowledge. You should look for a competent property manager who possesses the following two sorts of knowledge in general:Local market knowledge and legal knowledge. When things hit the legal fan, a property manager's duty and responsibility is to be present.

Professional property managers are able to provide answers to any legal questions that you may have. The more harmonious the relationship between your tenants and your property manager, the greater the likelihood that people will choose to continue renting from them. It could be a challenging tenant or a contractor that isn't doing a thorough job. High-quality property management includes being aware of when to be strict with a renter. Ask the question "How many years have you been in real estate?" to learn about your manager's experience.

Accountability is an essential component of competent property management. Your property manager should never try to shift blame or avoid taking responsibility for their mistakes. High-quality property managers must also have the mindset of an investor. They must handle your investment as if they were also involved in the real estate business. The majority of property owners in Australia are of the opinion that local property management should be prioritised above all others.

A local property manager is more focused on a smaller area, will have more expertise and knowledge about your advertising in your neighbourhood, and has more time to manage your property. Local property managers have established working relationships with trustworthy local contractors and craftsmen. They also have a tendency to employ an older model for property management, which means additional surcharges for things like administrative fees, credit checks, and other such services. It's possible that they lack prior experience. The majority of the time, national property managers will charge you less for their services because they operate on a much larger scale, which lowers their overhead costs.

National property managers typically come up with creative ideas in order to compensate for their lack of familiarity with the local market. If you're looking to cut down expenditures, using a nationwide property manager is the way to go. Getting a national property manager who charges more reasonable prices is an excellent alternative. You will considerably improve your odds of finding an agent who will treat your investment property with the utmost care.