What is the number-one sign it’s time to find a new property manager?
The fact that you’re even considering making a change is usually a big red flag.
Are you painting the red flags green?
Below are the 7 signs it is time to switch.......
1. Not Invested
Find a property management company that cares as much about your investment as you do, rather than settling for a property management company that does the bare minimum to get by. A property management company should operate as a business partner who seeks out new ways to generate income, and who exhibits tenacity and determination to not just maintain but grow your investment.
2. Monthly Reports Late or Inadequate
As a property owner, you should be receiving reports regarding your property consistently and at the same time every month. These monthly reports should always be on time and be well organized. Unreliable reporting is a huge red flag that there are some serious organizational issues that need to be addressed. Consistent, on-time, well-organized reports are a true test to the efficiency and organization of a property management company overall. Pay close attention to the details to gain some important insight into the state of your asset.
3. Cash Flow Inconsistency
Huge fluctuations in cash flow can not only be stressful, it can put your investment at risk. If your cash flow seems to be unsteady, then perhaps it is time to consider a new property management company. Some fluctuations are to be expected. There are some months out of the year which consistently perform better than others, and the local and national economy do play a role, however; these standard fluctuations are gradual and happen again and again over time and are easily predicted, monitored and documented.
4. Follow through Lacking
It is expected that both parties will follow through and keep to their promises. Property management companies which lack accountability and reliability about deadlines are demonstrating a lack of respect for your time, for your investment and of your tenants. Trust must exist between a property owner, tenants, and property managers to have a solid foundation of accountability and reliability for any business to be run or managed effectively.
5. Rapid Escalation of Conflict Between Property Managers and Tenants
Conflict is inevitable in this industry, however, if you notice tenant needs are not being met, increased negative activity, or increased litigation on behalf of tenants, then it is probably time to consider a new property management company. The failure to establish a working relationship with tenants by a property management company will result in the inability for them to establish any sort of authority or enforcement of regulations.
6. Extremely High Maintenance Costs
Property management companies which have not established themselves among local vendors as credible and trustworthy, and who have not established a network of trusted vendors will often pay premium prices for even regularly scheduled maintenance. Additionally, elevated maintenance costs can be a potentially serious red flag, indicating inaccurate invoices and accounting practices, lack of regular maintenance and inspections of the property and mishandling of tenant maintenance requests.7. You Hear from Them Too Much... or Not at All
One of the main reasons for hiring a property manager or property management company is so that the property is managed. If you are a property owner, and you find yourself constantly leaving messages, sending emails and follow up emails, or they consistently seek permission or approval before taking any action, it shows generalized inexperience and/or incompetence.
Red flags cost a fortune
It can result in negligence regarding property inspections, maintenance, and general property upkeep, mishandling of money, major problems between property managers and tenants, lack of adequate bookkeeping, lack of adequate staffing, and lack of communication between tenants and property managers, which can cost you a fortune.
Whether these expenses present themselves as major damage to your property, legal costs and damages associated with poor accounting, nonpayment of rent by tenants, high turn-over rate, or long periods of vacancies; eventually lack of action on the part of a property owner to change property managers will come at a steep, and serious cost.
With offices in Tampa and Orlando, Harvard Pacific has you covered in the State of Florida. Learn how Harvard Pacific 3rd Party Property Management will partner with you. Click here to set up a meeting.