As the demand and price for rental properties continue to increase, property management organizations have become more and more prominent as expectations from tenants have also increased. In general, it is very important to not only evaluate your company’s culture, but also your property management’s culture, especially if they are a third party department. Therefore, you may wonder what are some common qualities and metrics that are commonly looked for within property management organizations.
Barbara Dershowitz, a Contributing Editor to The Cooperator, states that good management organizations should be responsible for, but not limited to, activities including:
Providing accurate and up-to-date financial reports regularly of your properties
Supervising your staff, including hiring and firing, while providing documentation of staff performance
Regularly attending board meetings to provide counsel and property statuses
Tailoring their service in an unobstructive manner
Handling tenant questions and concerns in a timely and courteous manner
Metrics are also very important when evaluating the effectiveness of a management organization. The most common metrics are tenant occupancy and retention rates per month. However, property owners should also keep track of maintenance fees and the average length of time a tenant stays in relation to the property management organization in place. These factors can reveal what percentage the management organization is costing you per portfolio and can provide a picture of how satisfied your tenants are based on occupancy and retention behavior under certain management organizations.
Property management is a very tricky, but highly impactful, line of work. As in all businesses, there are good management and bad management organizations and distinguishing between them is very difficult. What other qualities and/or metrics do you use to filter between good and bad management organizations? What major red flags or trends have you noticed?
For more information about this topic, please see the referenced articles below: