An investment property can be a great source of extra income as well as a long-term investment. Nevertheless, managing an investment property can be a full-time job and one that requires specialized skills and experience. From marketing the property to screening and selecting tenants, not to mention property maintenance and repairs, lease management, conflict resolution, and financial tracking – there is much more than meets the eye when it comes to making your property a healthy investment today and into the future.
Because there are so many responsibilities associated with effective property management, many investors prefer hiring a property management company because they have the background and knowledge to do the job well. So then, as a property owner, what do you need to know about hiring a property manager?
First of all, it’s important to hire a property manager with the specific expertise you require. For example, you want to be sure that potential property managers have experience with your type of property whether that’s a commercial, residential, or strata property. Likewise, you should choose a property manager that is appropriately licensed in the province of British Columbia. Licensed property managers have demonstrated they have the qualifications that are recognized through a licensing body such as the Real Estate Council of BC.
Next, you want to choose a property manager that has established systems and processes for effectively managing your property. Today, many property managers utilize advanced technology and property management software that can track rental rates and deadlines, lease expiry, financial records, maintenance records, and so much more. While different property managers may have different approaches to systematically tracking their work, you should always try to get a sense of their processes so that you can trust that your investment will be managed well. Just as you wouldn’t put your money in the hands of any financial advisor, you should put your property in the hands of any property manager. Learning how a potential property manager organizes their case load can help you choose the right professional for your property.
Finally and most importantly, always seek referrals and/or references before selecting a property manager. You want to see that your property manager has track record of success and satisfied clientele with properties similar to your own. Sometimes you can narrow your search of property managers by reaching out to your own business contacts, friends, or family to ask for recommendations. On the other hand, if you can’t easily access referrals, you should always ask for references. It is totally appropriate to review potential property managers’ portfolios and ask to speak to references before choosing your property manager. Ultimately, the long-term success of your investment depends on finding the best possible property manager.