How to Choose the Right Property Management Company

A frequent question we get from people when discussing out-of-state investments is how we can manage a large building from so far away. Thankfully the combination of a good property manager and technology allows us to do this effectively. Just like anything, communication is key in making this happen. In this blog, we will outline how we go about choosing a property manager and how we work with them to run operations smoothly.

How to choose a property manager

Choosing the correct property management company is extremely vital to a building’s success. These are the people that are your boots on the ground. They manage maintenance, tenant relations, and the building’s overall well-being. When choosing a property manager, it is important to find someone with experience and strong communication skills. Also, someone that is flexible and open to suggestions on how to better run assets. We like companies that aren’t tiny but small enough that we can have direct communication with the owner, if necessary. Additionally, we always recommend interviewing at least two but ideally three managers.

Experience

How long has this company been around and how many units are they managing? Through more experience, managers have seen all types of issues arise therefore will be more versed on how to handle difficult situations that arise. Also, what is their experience for the given area? Do they manage nearby buildings? Do they know how to work with the housing authority there? For our building in OKC, our manager oversees several similar buildings nearby. Therefore, they can accurately guide us on what vacancy rates are, appropriate rental rates, and what expenses will realistically look like.

Communication

These are large financial investments we are all making into these buildings. Therefore, we want to give all the attention and effort into making them successful. One way we do that is to have a strong follow-up with the management company and our on-site manager. We want to be in the know on how Capex projects are going, leasing, and monthly budgets. These items are currently presented to us in a weekly report and we also have a weekly call with our on-site and regional manager. The purpose of these meetings is to review the above-mentioned items and brainstorm how we can improve. These zoom calls are where we find solutions to overcome any issues we are having. Additionally, we have access to the owner portal through the Yardi system to pull our reports and keep track of rent rolls, delinquency, and expenses in real-time. This allows us to drill down on any problem areas during these meetings.

On-Site Manager

Owning a larger apartment building allows having an onsite manager that is typically there Monday-Friday, 9 am-5 pm (depending on the asset). Since we are not local, this person is our eyes and ears at the property. Thanks to technology, if they have a question about a repair, they can send us a picture or video within seconds. This is really what allows us to manage an asset from across the country. This person is essentially an extension of ourselves as we have shown them how we operate and what we expect. Therefore, this person must be a great communicator not only to us but to the tenant base as well. 

Maintenance/Construction

One area that is probably not talked about enough is maintenance/construction needs. Having a great maintenance tech onsite is priceless. A maintenance guy that can do most of the work when it comes to getting an apartment ready will save you a lot. It’s a huge plus if they are capable of plumbing/electrical, HVAC, etc.… Basically, the less you need to outsource the more savings. Plus, tenants feel more comfortable when they see the same face coming into their unit. So, having an understanding of what kind of maintenance staff your manager has and what they can take on with larger CAPEX projects is crucial. Also, see if they have a roving maintenance person that can assist the tech on your property as needed or if your tech is out sick, etc. Ultimately maintenance costs can make or break an investment so it’s that much more important.

To conclude, it is very possible to manage a building without being in the same city. Having a strong property management team in place, an onsite manager, maintenance tech and the appropriate technologies allow for that. Having a manager that is willing to be flexible and is open to change is essential. The #1 thing is to have consistent and clear communication with all party’s involved therefore nothing gets lost in translation.