Colorado is the third best state in the country when looking for low property taxes. This makes it a popular state for investing in real estate. Combining this with the current buyer's market, it's a prime spot for those investing in rental properties.
Whether you own one or more rental properties, hiring a property manager can help you make the most of your real estate. Look for these qualities in the property manager that you hire.
Communication
You need to work with a property manager who can effectively communicate with you and the tenant. This includes both written and verbal skills. They should clearly and effectively explain the application and leasing process to the tenant.
They should have timely communication with the property owner about property issues. This keeps everyone on the same page of understanding and reduces the risk of communication breakdowns that could lead to larger conflicts.
Organization
There are a lot of moving parts when managing a single rental property. Staying organized is one of the most important property manager skills because they manage multiple rental properties.
During a potential property manager interview, ask what tools the manager uses to stay organized. Then ask about specific elements of management. For example, how the manager tracks applications, property showings, security deposits, maintenance issues, and monthly rental payments.
Budgeting
When you hand over the management of your rental property, you also hand over the management of the finances. You need to trust that the property manager can effectively manage the budgeting of your rental. Otherwise, you risk losing money rather than making it.
Property managers need to negotiate leases, collect tenant rent, make utility payments, contract vendors, and provide you with financial statements.
Marketing
Your property manager needs to keep your rental filled for it to be profitable. Marketing know-how is essential for getting the word out about an available property. Read the manager's property listings to get a feel for how they present other properties.
There should be professional quality photos that highlight the best features of the rental. There should be an engaging description that motivates you to see the property or apply.
Vendor Management
A property management company that has been in business for a while will have long-term relationships with multiple vendors. These vendors provide ongoing services for the rentals. As a property owner, you can leverage these connections to service your property.
Your property manager should communicate with, schedule appointments, and manage the payment of vendors.
Real Estate Market Experience
Colorado is one of the states that require property managers to have a real estate broker's license. However, there are different types of property managers, and not all are required to have a license.
For example, an on-site residential manager of an apartment or condo is exempt from the license requirement. However, they must be salaried employees and not negotiate lease terms to qualify.
Consider Hiring a Property Manager
Hiring a property manager is about trusting someone with your real estate investment. That person needs to have a range of skills that allows them to wear many hats.
Reach out to our experienced team of property managers, and let us show you what we can do for you.
