Tom C. Says:
In a recent letter, Dede Fulk mentioned, “I have a list of criteria that I looked for in a property manager, and I found one through referrals.” It would be great if Ronan could give a list of criteria for good property managers.
Real Estate Trend Alert Founder Ronan McMahon Says:
Hi Tom,
A good rental manager can mean the difference between mediocre occupancy rates with measly rental income and a stellar performance. However, who you go with will depend on what your requirements are, and they may not be the same as mine. But I can offer you some advice to help with your search.
When you’re looking for a rental manager, ask friends, neighbors, and locals who they use and what their experience has been with them. Then, go online to do an internet search. Search for similar homes to yours in the same area and see if a certain name comes up again and again. You might find a rental management company with a website that’s in the top three that shows up…or a manager who’s working all the vacation rental sites, like Airbnb and VRBO.
As you know, that web presence is crucial. It’s the way to get your home out there, in the face of potential renters, and keep a steady stream of visitors coming through your door. Look at how appealing they make the real estate on their books seem. Are there nice photos? Good descriptions? Would they make you want to stay there? If so, you may have found your rental manager.
When you’ve found a possible rental manager, it’s time to start asking questions. When you describe your home, they should immediately tell you the ballpark rental rates you can charge and the type of occupancy you can expect. They should also give you a clear breakdown of what they will charge you and what it covers.
Make sure you ask what they will do for their management fee. Will they find you renters…do check in and check out…pay the bills…take care of the cleaning…handle repairs and maintenance? It’s worth paying a little bit more to a manager who does all of this for you. The last thing you want is to receive phone calls in the middle of the night, or during an important work meeting, asking you to fix the hot water or get the internet sorted in your overseas home.
Most managers are juggling the number of units they manage and the number of staff they employ to handle rentals. You won’t get good service if they have a handful of staff and a large number of units. Find out what systems they have for handling reservations, queries, and reporting problems. Check if they are an established company with a large client base or a start-up with no track record.
An established company should give you a clear idea of how much rent you’re likely to get and how much profit that translates to. Check the data they provide with other sources. Ask them for referrals from clients, too.
A start-up manager might come along with some innovative ideas to draw in renters and an attractively low fee. But you’re their guinea pig as they learn the ropes. An established group will have experience…connections…and (hopefully) a good name for delivering excellent service. They’ll have staff in place and plumbers and cleaners on speed dial. And a huge plus is they will have an existing list of clients who rented through them in the past. Repeat renters and referrals by renters is key to getting high occupancy rates. You’ve got a head start if your manager has a long list of satisfied clients.
With that in mind, see what reviews the rental manager has online from renters. Five stars is fantastic.
Get some written referrals too, from owners who already use them, to see if they’re happy with the type of income and level of service they’re getting.
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