When Is the Right Time to Hire a Property Manager?

When is it the right time to open the umbrella? Well, before it rains would be the logical answer. The same logic applices when it comes to decding whether to hire a manager for your rental propert.

As a property manager and Realtor, I am privy to hearing of so many tenant/landlord horror stories from folks who self-manage their rentals and investment properties.

That being said, many people are very comfortable and successful in managing and understanding their assets. Tenants can either be an asset or a liability. Working to recognize the tenant’s categories is where the success can be had.

I manage more than 40 residential properties, from multi-million dollar estates to small condominiums. One thing that we encounter in today’s economy is that regardless of a tenant’s current economic status, more and more tenants are just one paycheck away from transitioning from an asset to a liability.

Constant communication and taking an interest in a tenant’s life can pay huge dividends and perhaps avoid disaster. For instance, if the tenant is in the aerospace industry and we hear that aerospace will be suffering, we contact the tenant.

The point of contact is by no means a point of harassment, but a point
of concern. We will ask questions that will convey to the tenant that we are genuinely interested in their well-being. Also, we remind them that should there be an issue with rent, they could and should contact us so that if arrangements need to be considered we can take a pro-active stance. Again, opening the umbrella before it rains.

If you are one who self-manages and has enjoyed success, kudos to you. If you are one who self-manages and struggles with tenant issues, tenant-related legal concerns, repairs, late payments, no payments, sleepless nights or high turnover, you may consider finding a property manager. In most cases when you find with a qualified property manager, the fee will pay for itself time and time again.

Finding a property manager that indeed manages the assets properly and is not just a clearing house for rents and owners' proceeds is also key. Interview the property manager. Make sure that they are licensed with the Department of Real Estate as mandated by California law. If they are not licensed, you may be held liable for more than you bargained for. Ask if they have the appropriate team to handle emergencies and repairs. Insure that you are like-minded and they understand your long- and short-term goals with the property.