What to look for when managing a manager managing your property? There are a few items to keep in mind, and keep your focus on.
- Keep a working relationship with your manager. Try to understand where they’re coming from, what they’re explaining; gain clarity on what they’re doing and why they’re doing it. It is important to understand their perspective, you’ll learn a lot, and you’ll learn how you can contribute and bring value to the relationship.
- The property metrics. Who is paying rent? Are they paying the full amount? Are they paying on time? What are the expenses? What are the repairs historically? What repairs and or maintenance items need to be done now? Or in the near future? What is the cost for repairs? How often does it happen? Do the repairs make sense?
- The landscape, what has happened and what’s coming up. Are there tenants planning to leave? And if so, when? What repairs need to be done over the next year (five years)? What maintenance items can be done to improve the rent and/or long-term rentability of the property? What Market cycle are you in? Going up, going down, going sideways? What direction is it likely to go? Do you have a loan coming due?
These are all questions that you could ask yourself, and your property manager on a monthly and/or annual basis. Some should be tracked monthly, others at least annually.
They give you a good overview of what’s going on with the property, what changes you should make, what to do next, and additional expenses that you’ll have in the future.