Smart investors know that working with a professional San Diego property management company can help them have a better investment experience. If you want to earn more, spend less, and make fewer mistakes, you need a good property manager. So, Steve and Kyle got together to discuss what investors should be asking when they’re looking for a management company that’s the best fit.
Know Your Investment Goals When Seeking Property Management
First, you have to think about what your investment goals are. This is what will drive your property management choice because you want to make sure your investment goals match your property management company’s core values.
It’s never a good idea to go around looking for the cheapest property management company in San Diego. This will end in disaster. Instead, you want to find a great and reputable company with policies, procedures, and operations that line up with our investment goals and expectations.
You want to be sure that the property management company you select can help you reach the goals you want to accomplish. Core values should line up with yours. Your property manager must understand your investment goals and present a plan of action that allows you to reach those goals. You’re looking for property managers with confidence and professionalism. You’re hoping to develop and maintain a positive relationship that lasts for the long term.
It’s important to have a friendly relationship with your property manager. You want someone who checks in with you and really cares about your rental experience, not just someone who seems like they are doing the bare minimum to get through the tasks involved in their job. It’s not a good sign if you never hear from your property manager. You need a friendly, open relationship, and you need results.
Ask Questions and Have a Conversation
There are several important questions that need to be asked when you’re interviewing potential property management companies in San Diego.
Start with getting to know the team members. Who is making the decisions when it comes to your property? You’ll want to get some answers even before you buy an investment. Your property management company is going to help you earn better returns. Buying a property with a projected return is different than actually getting the money in your bank account. A lot of things will affect those returns, including vacancy and resident retention. So, when you’re talking to your property manager or a potential property management company, make sure they’re aligned with your goals. Make sure they understand your goals and how to reach them.
You’re looking for a team member who can help you make smart decisions. Don’t hire a property manager simply because you need someone who can collect rent and handle maintenance requests from your residents. Anyone can do that. You want someone who is willing to engage with you. A passion for property and real estate investing is critical.
We have talked to many people who said they hired the company that was either the cheapest or the company that answered the phone first. Those are not qualifying reasons. An investment property is likely one of the largest investments you’ll ever make in your life, probably the second largest investment after your own home. You want to have someone on your team who can help you invest. You don’t want to choose the company that is good at answering their phone.
Topics to Cover and Questions to Ask
When you’re talking to potential managers, you want to ask things like:
- When can I expect the rent disbursement? Hopefully, you’ll find that most management companies make electronic payments directly to your account, and you don’t have to wait around for a check.
- How many days does it take to lease the actual property? Ask about the vacancy rates for the management company overall and what their occupancy rates are. You are not looking for a long vacancy period.
- What is your eviction rate? Your property manager should know how to evict a resident, but you don’t want to work with a company that is always evicting the residents that they place. There might be something wrong with their screening process.
- How many days after a property goes vacant should I expect maintenance to be done? Turnover times should be quick.
These are things you want to know. If a company cannot answer those questions, then they’re not doing a good job of tracking their results. That’s going to be a problem for the smart investor, and they might not be the best fit for you.
Think about what kind of benefits you want from this company. You want them to value and treat your property like it is their own investment. Just like with any other business, you don’t always want to choose the cheapest one to do the job. You need to look for someone with experience and confidence and professionalism.
Cheaper is not cheaper, as experienced investors have learned. Investing successfully requires a team, and you need a professional management company to be part of that team.
We are passionate about property management in San Diego, and we’d love to tell you more about the way we manage residential investment homes. We’d also be happy to answer any questions that you have about how we are and how we work. Please contact us at Mynd Property Management.
You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.