Managing Your Real Estate and Relationships
Whether you’ve taken the plunge and hired a property management team or simply considering the idea to take your real estate investments to the next level, it’s important to understand and manage the professional relationship that develops between a landlord and property management team.
As an investor, becoming a landlord, especially for the first time, will present various unique trials and obstacles to overcome and it is important to know what you are getting into beforehand or seek a proper source of help to assist with the necessary operations conducted during the lifetime of owning and renting real estate.
The right property management company will propel your company and bring an incredible return on investment with important benefits but if the partnership isn’t developed and established correctly, it is doomed from the very beginning.
The overall goal of you the investor is to create wealth through real estate and your property management team’s goal is to make that goal a reality in the most seamless manner possible.
Together, we can take a look at what can keep this relationship working in a healthy manner to maximize your real estate returns and satisfaction.
Screen Your Property Management Team
In the same manner, you screen your tenants, it is important to know who you are working with before you dive on in.
Starting off on the wrong foot rarely produces great relationships in any facet of life and when money is involved, these problems are only amplified.
Establishing the terms of your relationship, the terms of your business, and the responsibilities beforehand can save time, money, and headaches in the future.
Get to know the team and their practices that will be partially responsible for a very important financial investment for you and your livelihood to ensure everyone is operating on the same page.
Avoid surprises upfront. Some of the top considerations you should determine before hiring a property management company are:
- How and when payment is handled and processed.
- What the property management company’s fees are.
- Which communication channels will be used and how often to expect those messages to be conveyed.
- If things don’t go well, what are the terms in which to terminate the property management relationship?
Like many things in life, communication is key. Speak with your team and find out how they operate and determine if your two goals do in fact coincide.
Establish Responsibilities Early
The day-to-day operations can seem simple on paper but in practice may require more thought.
Of course, property management teams are brought into place to ease the life of landlords and investors and ideally handle the routine things such as maintenance; however, depending on your financial structure, you may want to consider different scenarios in which you would make the decision instead of the company.
An example of this can be simply seen in one of the most consistent problems landlords face, repairs and while that $125 charge for an air conditioning service call might not break the bank, a $15,000 new unit is a tremendously different situation. Avoid a surprising charge and loss by establishing guidelines that detail what scenarios you wish to handle personally or at least be notified before a decision is made.
This doesn’t simply end on repairs or monetary discretion either:
- Who posts to social media?
- If pets are a “case by case basis” will you or your property team make that call?
- What roles do each party play in the event of a legal dispute between the company and a disgruntled tenant/ex-tenant?
Going through and establishing guidelines helps ensure your business is ran in the correct manner.
Respect Your Property Management Team
Last yet certainly not least is an area that can sometimes be difficult for many owners to do: trust the team you hire.
We get it.
It’s your money.
It’s other people’s money.
It’s a responsibility that spans far beyond the initial investment and carries heavier implications that meet the surface, but in some ways, you just have to let it go.
This is why due diligence and establishing the terms of your relationship before you dive in are actually of importance. When you hire the right team, it can become a lot easier to entrust them with such a responsibility to not only do the job but also do it right.
Respect the established perimeters of your professional relationship and navigate them accordingly. Your property management team is on your side and together should work with you to achieve your goals and create a relationship that fosters success.
The Property Management Team You Can Trust
A successful business relationship should provide value to all of the parties that are involved and the one between your real estate business and property management team is no different.
With over a decade of experience, the experts at Key Realtors are equipped to build a quality relationship through unmatched service and a history of results.
Our property management services allow your company peace of mind all while delivering proper service to your company and tenants. Contact us today and see what we can do to provide your property with proper management and maximize your company’s returns.