Need a New Residential Property Management Firm? 6 Red Flags

Effective residential property management is the cornerstone of successful real estate investments. As a rental property owner, making sure your property is managed efficiently and professionally is a necessity.

However, there comes a time when it becomes evident that your current firm may not be meeting your expectations. Opt for experienced property management services to safeguard your investments.

Having a hard time with your property manager? Here are clear signs that indicate it’s time to find a new property management company.

Watch out for these six red flags:

1. Multiple Bad Residents
2. Poor Rent Collection
3. Multiple Maintenance Calls About the Same Issue
4. Too Many Resident Complaints
5. Poor Communication
6. Low Vacancy

Let’s dive into these red flags to make sure your investments are in good hands.

1. Multiple Bad Residents

If you’re encountering numerous challenging residents, it could signal ineffective screening processes. Frequent trouble with unruly residents can disrupt the community and could even lower your property’s value.

How to Avoid Bad Residents

A top-notch residential property management team will require the following to screen for quality residents.

1. Strong screening process: Screen potential residents with a thorough background check, reference checks and credit history review.
2. Detailed rental application: This will help weed out any potential red flags.
3. Clear lease agreement: Have an extremely clear and concise lease agreement. 

 

2. Poor Rent Collection

Late or missing rent can put you in a tough financial spot. One of the main duties of a property management firm is to collect rent on time and in full. Facing late payments or non-payment often indicates ineffective enforcement of rent collection policies by your current management company.

How to Ensure Timely Rent Collection

A reliable property management firm will have established systems for timely rent collection. These may include:

1. Online payment options for convenience and timely payments.
2. A strict late fee policy to discourage late payments.
3. Consistent communication with residents about rent due dates and reminders.

 

3. Multiple Maintenance Calls About the Same Issue

Maintaining the property is important to preserve its value. If you’re constantly receiving maintenance requests for the same issue, it can indicate a lack of proper maintenance or ineffective problem-solving.

How to Address Maintenance Issues Effectively

A competent property management firm should have a system in place to address maintenance issues promptly and efficiently. This may include:

1. Regular property inspections to identify any potential maintenance problems before they escalate.
2. A network of reliable and affordable vendors for timely repairs.
3. Clear communication with residents about proper use and care of the property to prevent avoidable maintenance issues.

 

4. Too Many Resident Complaints

A surge in resident complaints indicates your property management company might not be addressing residents’ needs effectively. These complaints could range from communication issues, unaddressed maintenance problems, or lack of response to inquiries or requests.

How to Address Resident Complaints Effectively

Prioritize open communication with residents and promptly addressing any concerns or complaints. This could include:

1. Regular surveys to gather feedback from residents.
2. A dedicated point of contact for residents to voice their concerns.
3. Prompt resolution of resident issues and clear communication about the actions taken.

 

5. Poor Communication

Communication is key in any successful business relationship, and property management is no exception. If you’re facing persistent miscommunication or silence, it could signal a lack of focus on effective communication practices.

How to Encourage Effective Communication

A residential property management firm should have open lines of communication with property owners and residents. This may include:

1. Regular updates and reports on property performance.
2. Prompt and clear responses to inquiries from property owners.
3. Timely communication with residents about any changes or important information.

 

6. Low Vacancy

Though it might seem odd to view low vacancy as a red flag, it could signal issues. If your property consistently has few vacancies, it could suggest that rental prices are too low, impacting your profits.

How to Secure Maximum Rental Potential

A property management company should be conducting a regular market analysis to determine the optimal rental rates for your Bozeman property. They should also have strategies in place to attract and retain quality residents, such as:

1. Effective marketing tactics to reach potential residents.
2. Actively updating and maintaining the property so it remains desirable for renters.
3. Having a fair but profitable rent pricing strategy.

Investing in a reliable and competent property management company is vital to the ROI of your rental property. Your investments should thrive in the competitive Bozeman rental market. However, some owners may prefer to have a low vacancy rate to help control turnover and keep great long-term residents. Stay informed to secure your assets.

 

Time to Find a New Property Management Firm?

Has your current manager ever spoken to you about any of these items? Ironhorse Management can explain how each of these red flags may be negatively impacting your investment and prepare a specific plan to maximize your investment.