Are you getting all the services and value you expect from your Littleton property manager?
As a real estate investor or landlord, you work with a property management company so you’ll earn more, spend less, and access all the expertise, resources, and knowledge that management professionals have.
We know that changing management companies can feel risky. Sometimes, it’s easier to stick with what you know. But your investment property deserves exceptional leasing, management, and maintenance services. It may be time to upgrade your property management partner.
Here are three signs that are likely to tell you - without a doubt - that your property manager is not good for your investment, and it’s time to look elsewhere.
1. Littleton Tenants are a Problem
In many ways, your investment experience will depend on the tenants your property manager places.
If you have good tenants in place, you likely won’t be bothered with calls about late rent, unreported maintenance, security deposit disputes, and property damage that was left behind after a tenant moved out. That’s a sign that your property manager did a great job screening and managed to establish a great relationship with your residents.
Bad tenants, however, will have a totally different impact on your experience as a rental property owner. You’ll have to deal with late or missing rent. Your property manager may recommend eviction, which is of course at your own expense. There could be damage left behind that goes beyond the security deposit that was collected or lease violations that lead to risk and liability at your property.
Tenant screening should be rigorous, consistent, and thorough. It should result in a well-qualified tenant who is easy to work with and follows the terms of the lease agreement.
When you’re finding that the tenants your property manager has placed are falling behind in rent or leaving property damage behind or disputing every charge against their security deposits, you probably don’t have a management company that’s good at tenant screening or tenant communication.
There shouldn’t be evictions or lawsuits. There shouldn’t be a lot of turnover, either.
Placing a tenant who turns out to be more work than expected can happen once in a while. But, a list of bad tenants indicates a real problem with marketing, screening, and lease enforcement.
It’s also a problem when tenants are eager to leave your Littleton rental property. When there seems to be zero effort at retaining good tenants, you face higher turnover and vacancy costs. You might wonder why your tenants aren’t renewing their lease agreements.
Don’t be afraid to switch management companies if you seem to be losing tenants or losing money in security deposit disputes, property damage, and eviction court fees. Bad tenants point towards bad property management.
2. Your Investment Property is Losing Money
You should be earning more and spending less with the help of a Littleton property manager.
If, instead, your property manager seems to be costing you money, there’s a problem. This is a big sign that it’s time to find a new management partner.
Smart investors work with property managers because they want to keep costs down and profits up. If you find that you’re losing more and more money as the months and years go on, there’s like a problem with one or more of these areas:
Rental values are inaccurate
Vacancies are taking too long to fill
Tenant turnover is frequent and a lot of deterioration is left behind for owners to pay for
Deferred maintenance is costing more than it should
Late rent is pushing your own finances behind
Security deposit errors are causing you to pay penalties and fees
Poor lease enforcement has left you making repairs you didn’t expect
Evictions are becoming necessary
If you’re finding that tenants don’t often stay in the property longer than a year or it takes months for a management company to lease your vacant home, you should consider those excellent reasons to find a new property manager. Don’t settle for these losses. Good property managers will save you money and steer you towards opportunities and ideas that will help you earn more cash flow and ROI.
You should know what type of criteria your management company is using to price your property. You should get to know their retention plans and feel comfortable asking for inspection reports and photos. If your accounting statements are not easy to read, they may be trying to hide your true losses.
Stay on top of your earnings and expenses. Don’t stay too long with a management company that’s costing you money.
3. Problems with Littleton Rental Property Maintenance
Maintenance services are crucial to rental property owners, and your property manager needs to implement sound policies that protect the condition and value of your investment.
Is there a good plan in place for how routine and emergency repair issues are responded to? Do tenants understand what their maintenance responsibilities are?
Responsiveness when it comes to routine and emergency repairs will ensure you aren’t losing money on maintenance. It also keeps your tenants happy. If you find that repairs aren’t being made or there is a lot of deferred and unreported maintenance discovered during inspections and turnovers, there’s something wrong with the way your management company is handling the rental property repairs at your property.
Preventative maintenance is perhaps even more important. Are they scheduling HVAC service inspections every year? Can they tell you what your roof looks like and whether your landscaping is getting old? You need to know where you stand now, and what you’ll need to plan for in the future.
Look for a property management partner with a preferred list of vendors who are licensed, insured, and responsive. You should also expect work to be cost-effective. If maintenance is going wrong at your Littleton rental home, it’s a good reason to switch management companies.
These are just three of the main signs that you could do better when it comes to choosing a property manager. If you’re ready to switch but you’re not sure how to make the move, we can help. Contact our team at Assured Management, Lakewood property management experts serving residential landlords in West Denver and the surrounding areas, including Littleton, Golden, Wheat Ridge, Arvada, and more.