Reasons to Fire a Property ManagerSep 03, 2021
This is going to happen to you as an investor at some point. You're going to fire a property manager eventually. Why would you do that? What kinds of things are happening over and over again, that make you say, this company's lost their edge and I got to get a different property manager? What should you look out for?
When getting a property manager, the key question that comes to my mind is, how valuable is your time. Time is valuable, right? And so that's why a lot of investors want a property manager, I, my time is valuable, I'd rather be doing other stuff, family work. And so I see value there.
When it comes down to it, it's understanding the PMA property management agreement, what's included in their services, and then seeing if they execute that or not, and holding them accountable for what they promise they're going to provide.
It's just understanding what they have to offer upfront and then seeing if they can execute that or not. And if they're dropping the ball over and over again, or if the communication, which is huge, if that's a little bit clunky, or if that's not being delivered. And that's something to really think about.
Or if they're not getting you the rents. So in your PMA, you're usually saying, this is where we want our rents to be. If they're not getting the rents, then obviously, that's going to be an issue.
Or if it's taking a lot longer to lease-up, than you anticipated again, there's some of that time period where you need to stabilize the property if there's a lot of inventory coming on the market. But are they taking a lot longer? I don't know. Maybe they are. Maybe they're not.
Are they executing what they agreed that they can provide for their services?
One thing that gets me, and management companies that I personally use have been guilty of this... is if I have to drag every piece of information out of them. If I have to go retroactively, look at my statement and say, Why did this happen? And they don't know.
We want to know these things.
A bad property manager is somebody where you have to find out if there's a problem. They might not even know, and then they don't have a good solution. I mean, that's a problem right there.