| Building the right team is critical when starting a business. Working with others to achieve a common goal can have its challenges. Fortunately for us, we have an amazing team. K&E property management has teamed up with Threefold REI to manage our 4 buildings. They are great partners and play a critical role in the success of our business. However, the search for a good property management company can be difficult! Here are 5 qualities to look for in a great property management company: Reporting: What metrics do the property management company evaluate on a daily, weekly and monthly basis? What reports are provided and expected from both the management company and the ownership team? Some examples include owners reports, profit and loss statements, rent rolls, vacancy percentages, etc. These reports help analyze your business efficiently. Market knowledge: What is the current market rent for the location? A great property management should know the current market rental price for any size of unit. This will help your company be successful in marketing and overall growth. Communication: Will the property management pick up when the owners or the tenants call? Furthermore, what is the timeline expected for repairs or resolutions when issues arise? A great property management company provides clear timelines and expectations for the communication and for necessary repairs for both the ownership team and for the tenants. This transparency will improve overall satisfaction with the property. Management standards: What standards does the property management company have on late fees, evictions, pet fees, rental applicants, etc? A great management team will have strict and clearly stated fair standards to avoid issues. Each tenant should be treated the same regardless of the situation and honesty and integrity is imperative. A great team will do the right thing in any tough situation even when it may be costly. This helps maintain a healthy relationship between the management team and the residents. Vacancy: Vacancy in an apartment building can be detrimental to its success. To successfully turnover an apartment, a great property management team should be able to repair and clean the property quickly and efficiently, to effectively market to prospective tenants, and to screen applicants to find a qualified tenant. A great team will have the turnover plan clearly delineated and will frequently update the ownership team regarding the status of each property turnover/vacancy. At threefold REI, we are grateful to work with a great property management team. It is reasonable to spend 8-10% of your revenue on a property management team. Our management team will also be paid each tenant’s first month rent to incentivize a rapid turnover. We are happy to spend this money to work with a great property management team. Because of them and their work, we are free to focus on our investors and to search for new property opportunities! |
