Choosing the Right Property Manager

APRIL 25, 2024

by: judy & ernesto andujar

Introduction

Focus on choosing a property manager and management company
Key Points

Distinction: Property Manager vs. Property Management Company
Property Management Company

Expected to bring value
Consistency and accountability
Multi-layered accountability: State, client, investor, resident, vendors
High liability impact
Property Manager
Can have a good company but a poor manager, and vice versa
In Texas, licensing is required for single-family property managers
1. Relationship
Importance of business relationships
First contact: Ask about the client, not the property
Establish trust and understanding
Two-way relationship: Fit between client and company
Avoid the "price tag trap"
2. Services
Services should be clearly listed in agreements, not just mentioned by salespeople
Key Services:
Rent collection
Leasing
Maintenance coordination
Full-service companies vs. co-management
Importance of understanding full service for value realization
3. Guarantees
Need to know guarantees for services
Example guarantees:
Maintenance re-checks without extra charge if the same issue persists
No administrative fees for eviction if the management placed the resident
Assurance of company standing behind their services
4. Fees
Should be considered last after relationship, services, and guarantees
Fees generally range from 6% to 10%, can vary based on property specifics
Importance of valuing the property manager for their worth, not just cost
Fees should correlate with value provided and market competition
Conclusion
Importance of relationship and communication
Efficient management can lead to competitive fees
Call to Action
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