In this insightful episode of the Heartland Multifamily Show, Trot and I address a pivotal aspect of successful multifamily investing: selecting the right property manager. This choice is more than just a business decision; it’s a critical factor that significantly influences the success and value of your property. We often encounter multifamily owners who face challenges due to poor management decisions, leading them to our doorstep seeking solutions for properties that are underperforming or losing money. Our goal in this episode is to arm you with the knowledge and tools to make an informed decision and avoid common pitfalls.
A prevalent mistake we discuss is the tendency to prioritize cost over quality when selecting a property manager. While it’s understandable to be cost-conscious, focusing solely on price can lead to long-term dissatisfaction and a host of management issues. Our experience and interactions with multifamily owners reveal a stark truth: very few are satisfied with their decision when cost is the primary factor. We emphasize that management is a cornerstone of multifamily investing success. Cost is a consideration, but it shouldn’t overshadow the importance of management quality.
The conversation then shifts to the crucial step of firsthand evaluation. Visiting the properties currently managed by a prospective manager offers invaluable insights. This step is often overlooked, but it’s a window into the manager’s operational standards and care for their properties. We suggest visiting these sites unannounced to get an authentic view of their condition and management approach.
Another key step is checking references. Surprisingly, many potential owners skip this crucial part. Speaking with references provides a real-world perspective on a manager’s performance and reliability. We advocate for making at least three reference calls; a manager who can’t provide three solid references is a red flag.
We also highlight the importance of effective communication between owners and property managers. A manager who understands an owner’s perspective can better tailor their approach to align with the specific goals and vision for the property.
In addition to these points, we offer a bonus tip: the importance of a good fit. It’s essential to find a manager whose expertise, style, and approach align with your specific needs and vision for your property. Every skilled manager might not be the right fit for every property, so this alignment is crucial.
Join us in this episode of the Heartland Multifamily Show as we delve into these essential strategies for choosing the right property manager. Whether you’re new to the game or looking to enhance your current strategies, these insights are invaluable in navigating the multifamily investment landscape
