Hiring a property manager is an essential part of earning from your properties. However, not all property managers or management firms are cut from the same cloth. How can you tell apart an all-star property manager from a mediocre one?

Here are six signs you need to replace your property manager with a better one.

1) Late With Their Reports

Property managers understand the anxieties that accompany handing over the care of your investment properties and financial report to someone else. Part of that worry is alleviated with timely reports letting you know the state of property affairs. A good property manager provides you with comprehensive reports punctually.

If it takes your property manager or management firm a little time to compile the reports, that’s alright. However, receiving them in the middle or near the end of the following month is unacceptable. If you have been waiting for the reports for several months, that is a massive red flag. You need to be able to see all the costs, expenses, and income in time to make future decisions.

2) Can’t Fill Your Units

One of the most critical responsibilities of a property manager is ensuring all your available units are filled. When a property remains empty, that is money going down the drain.

That applies to single or multi-family units, commercial, and industrial properties. They should strive to find tenants to occupy your property no matter the niche it falls into.

You aren’t getting your money’s worth if they can only fill a few units. It is prudent to think of employing a more reliable property management firm. The right property management firm understands the rental market and can find tenants and make them stay without too much struggle.

3) Not a People Person

Suppose you have a diligent property manager who always does everything on time and in a good way. However, they lack communication skills and aren’t that great with people. They are introverted or just shy.

Unfortunately for them, many aspects of property management require interaction with people. Many tasks require higher communication skills like finding and vetting tenants, handling maintenance specialists and contractors, collecting rent, handling emergency repairs, and so on.

If the property manager doesn’t communicate effectively, they cannot accomplish these tasks efficiently. Someone with great advertising skills and social media knowledge can get tenants to see the properties, but it takes an excellent conversationalist to reel them in. If you noticed your property manager isn’t great with people, perhaps consider switching to a more charismatic one.

4) Lack Experience

Are you one of the handful of clients a new property manager has? Of course, this property manager has lots of potential but can you afford them making beginner mistakes? Experience is crucial for property management success.

A good property manager has skills honed to perfection with time. They understand the market deeply and know how to research the local property scene. Not having experience means your property manager will always be in unfamiliar territory.

Some people are more adept and resourceful than others. However, you cannot risk your valuable investment in the hands of anyone who could prove to be incapable. You are better off hedging your bets with a long-standing property management firm. Even if they assign a relatively inexperienced manager to you, he will have access to mentors and resources.

5) Not Technologically Advanced

Nowadays, property management is becoming more and more reliant on technology. Accounting software, CRMs, report generators, and so much more are available. This software and technology aim to make property management more convenient for the managers and property owners.

If your property management firm isn’t moving with the times and chooses to use dated methods, you should consider switching. A property management firm that stays up to date with modern technologies will be one step ahead of its outdated peers.

For example, during the recent pandemic, property managers already familiar with online payments, meetings, and virtual tours adjusted without issues. In contrast, firms that resisted change suffered and created easily avoidable problems for clients and tenants.

6) Faulty Leasing Agreements

A lease agreement is a contract between the owner and the tenant. Some inexperienced property managers are okay with just a handshake instead of a John Hancock. Others make the mistake of not catching up on the legal requirements of the area. They might make clauses in the agreement which are unlawful. That would make the whole contract void.

The sign of a good property management firm is that they will never let you down when it comes to leasing agreements. They are well-read on all local regulations and ensure all documentation is perfect.

Conclusion

If you see any of these signs, you should swap your current property manager for a better one. Now you can tell apart a good property manager from a low-grade one. We hope this helps you make better decisions regarding your property management needs.