Owning a rental property is a lucrative income source—and hiring the best property manager will help reduce your workload and maximize profits.
Owning a rental property is a great strategy to earn generous returns. However, managing one can be overwhelming. Property management requires knowledge and various skills, including marketing, maintenance, legal, and accounting. Unfortunately, some investors may not be equipped with all the said skills.
Table of Contents
- 8 Qualities of the Best Property Manager
- How to Find the Best Property Manager
- How to Be Your Own Property Manager (and Succeed)
- How Can Mashvisor Help You Manage Your Own Rentals
The lack of essential property management skills may result in mismanagement, increasing the risk of having an investment property that’s poorly maintained and unoccupied. It’s possible to suffer financial losses when your rental property remains vacant for too long.
Hiring a professional property manager can help minimize such risks. The best property manager provides high-quality services that ensure properties are well-maintained and rented out at reasonable prices. Moreover, you can rely on property managers to ensure that your rental property achieves a high occupancy rate to maximize your returns.
Another reason why you should consider hiring a property manager when investing in either long term or short term rental is that you may have limited time to manage your property. When you work with a property manager, you’ll no longer worry about marketing the property, finding and screening tenants, collecting rent, and responding to renters’ concerns.
However, how will you know which property management company is the best? In this article, we will discuss the qualities of a good property manager. Also, we will provide tips for investors who prefer to self-manage their rental investments using one of the best online real estate platforms today: Mashvisor.
8 Qualities of the Best Property Manager
When it comes to managing rental properties, hiring the best property manager can make all the difference. What makes a good property manager is a combination of skills and qualities that make them effective in handling the challenges related to the management of rental units. Look for a property manager with the essential qualifications and skills to help you succeed.
Below are some of the top qualities that the best property managers for both long term and short term rentals must possess:
1. Excellent Communication Skills
Communication is key in any business relationship, and rental property management is no exception. The best rental property managers should possess excellent communication skills—both verbal and written. They can communicate effectively with tenants, owners, contractors, and other parties involved in property management.
2. Organizational Skills
Rental property management involves a lot of tasks, whether the property is a long term or short term rental. From marketing vacant units to keeping track of maintenance schedules and attending to renters’ concerns, the property manager should be able to handle them all without a problem. The best rental property managers are organized and can multitask effectively.
3. Attention to Detail
Effective rental property management requires attention to detail. The best rental property managers are meticulous and possess a keen eye for spotting issues before they become bigger problems. Also, they should be able to determine the factors that can generate the best rental rate for a unit, both for a long term rental and an Airbnb investment property.
4. Knowledgeable in Landlord-Tenant Laws and/or Airbnb Laws
To legally operate a rental business, you need to stay in compliance with any applicable laws. The best rental property managers should be well-versed in landlord-tenant laws for long term rentals, and Airbnb laws for short term rentals to protect you from potential legal issues. The best rental property managers stay updated with changes to legislation and regulations.
5. Problem-Solving Skills
From minor maintenance issues and booking problems to missed rent payments and other tenant disputes, rental property management can be challenging. The best rental property managers demonstrate strong problem-solving skills and can find creative solutions to resolve issues quickly and efficiently. Plus, the resolutions should remain in compliance with the law.
6. Reliable and Trustworthy
As a real estate investor, you need reliable and trustworthy rental property managers whom you can count on to manage your investment assets. The best property manager should prioritize transparency, honesty, accountability, integrity, and ethical behavior. The upkeep of your rental unit, tenant retention, profitability, and overall success should be the top priority.
7. Quick Response Time
Good property managers should make themselves available and easily accessible. In short term rentals, prospective guests may have some inquiries about the property. Also, booked guests may have some concerns about their bookings or stays. A good property manager should respond to them promptly and provide good customer service.
With long term rentals, tenants may need to get in touch with the property manager to report emergency repair issues that need urgent attention. The rental property manager should attend to such issues as soon as possible and ensure to keep your long term tenants satisfied. Maintaining quick response times is critical to your overall success as a rental property investor.
8. Investor’s Mindset
While the property manager’s job is more focused on the management of your rental business’s operations, the best property manager should have an investor’s mindset. They must be aware of the latest rental trends. Also, they must know how to conduct proper rental analysis to help them bring out the best of your investment—ultimately maximizing your returns.
The goal of the property manager is to provide services that will maximize your return on investment. The property managers should understand the possible impact of their decisions on your bottom line. And so, they must take extra caution when making any decision, always keeping your profitability on top of mind.
Now that we’ve learned the top qualities of a good property manager, we will find out how to find one in the next section.
Related: Top 7 Airbnb Property Management Companies in 2023
How to Find the Best Property Manager
Finding the best rental property manager is crucial for rental property investors who want to maximize their return on investment less the hassle of managing rentals themselves. With the right property manager, you can rest assured that your properties are being taken care of. You are making the most out of your rental investment.
Here are the top eight expert tips to help you find the best rental property manager:
1. Do Your Research
Before you hire a rental property manager, it’s important to do some research. Look for the best property management companies in your area and read their reviews online. You can ask for recommendations from other landlords or short term rental owners, real estate agents, or even your own tenants.
2. Verify Their Experience
Look for a property manager with experience in handling your property type and investment strategy. Different properties require different skill sets, so be sure that they have experience managing properties like yours. After all, even if you invest in the best short term rental markets, you are not likely to succeed if your property manager is not skilled in managing Airbnb rentals.
3. Get to Know Their Team
Property management companies are composed of a team of professionals who will manage your business. Understanding the property management team and their organizational structure can help you feel confident in their ability to manage your investment property effectively. Also, make sure that their people possess the right skills and qualifications to help you succeed.
4. Look for Active Involvement
Find a property manager who is actively involved in the day-to-day management of the rental property that they manage. The person responsible for managing your property should be able to resolve issues quickly and efficiently. You can check out reviews from current and previous clients to ensure that the property manager is proactive and can be trusted.
5. Prioritize Local Expertise
The best property management company employs people who are knowledgeable about the local laws and licensing requirements, rental trends, and market demand. They should be able to access reliable and accurate real estate data and analysis to help you make the necessary business decisions.
6. Check Their Network and Connections
Partnering with a property manager with established relationships with a network of real estate experts will help you become successful. For example, your rental property will need inspection, maintenance, and repairs. So, it’s best to ensure that the property manager partners with reliable contractors and other vendors that are necessary for keeping the upkeep of your rental unit.
7. Review the Technology That They Use
One of the reasons why you should consider hiring a property manager is that property management companies use innovative technologies that make rental management easier. The best property manager must have established processes and technology. They help automate record-keeping, filing, communications, rent payments, and other day-to-day operations.
One crucial system that is a must-have for a property manager is a pricing tool that allows them to set the right rental estimate for a property. It is especially important for managing short term rentals where the pricing strategy should be dynamic and adapt to the seasonality and market demand. The best property management software should include such a feature.
8. Review the Contract
Before you sign a contract with any property management company, make sure to review it carefully. Ensure that it covers all aspects of your rental agreement, covers your requirements, and matches your expectations. Additionally, it is imperative to understand their fees and charges and that the overall cost will not have any adverse effect on your bottom line.
Keep in mind that working with a professional property manager has an associated cost. Make sure to understand their fee structure and decide which one is the best for you. Some property management companies charge on a per-service basis, while others resort to monthly fixed fees. Others will take a portion of your monthly rental income as payment for their services.
How to Be Your Own Property Manager (and Succeed)
While some rental property owners opt to hire the best property manager to help them manage their rental investments, working with a professional property manager can be costly. The good news is that with proper skills, extra time, and patience, you can be a full-time rental property owner.
There are three key aspects to rental property management:
- Property Management: This involves managing the rental unit itself and making sure that it remains in top condition. Maintaining the upkeep of the property and attending to repair issues are a few of the ways to retain the value of your asset, as well as maintain its habitability.
- Tenant Management: From marketing the property, screening tenants, and attending to tenants’ concerns, this ensures that the property achieves a good occupancy rate and generates sufficient cash flows. You also need to provide quality customer service to your tenants to keep a high retention rate and minimize vacancies.
- Financial Management: Owning a rental property is a business, so it involves financial aspects. You need basic accounting skills, learn the rental trends and market demands, and stay updated with the performance of your investment. Keeping your financial records organized is also crucial to make tax seasons smoother.
To ensure that you’ll get the best out of your real estate investment, you need to manage your property effectively based on your chosen rental strategy. Here are a few efficient ways to help you self-manage your rental investment property:
Know the Laws
If you decide to self-manage your investment property, then you need to be familiar with the laws related to operating a rental property in your area. They include everything from fair housing laws to eviction procedures. If you invest in long term rentals, understanding your state’s landlord-tenant law is crucial.
If you invest in short term rentals, you should verify first the short term rental laws in your chosen city before you buy any vacation homes for sale. Some cities do not allow Airbnb rentals, so this is a critical step that you shouldn’t miss. It’s always a good idea to consult a lawyer to ensure that you’re following all of the necessary laws and regulations.
Market Your Property Effectively
Having effective marketing strategies in place is vital to ensure that your property gets the exposure that it deserves to get it rented in no time. As a rental property owner, you need to reduce the length of your vacancies because vacant rental units are not generating income. Be sure to use extensive marketing methods to attract high-quality renters.
Screen Tenants Carefully
One of the most important aspects of managing rental property is finding reliable tenants. You want someone who will pay the rent on time, take care of the property, and follow the rules laid out in the lease agreement. To find such tenants, you need to screen them carefully. Learn the applicable Fair Housing Act provisions in your area to avoid any violations and unintentional forms of discrimination.
Screening tenants involves a variety of measures, such as conducting background checks, verifying employment and income, and checking references and past tenancies. It’s best to conduct an interview with the applicants to get a feel for their personalities and whether they would be a good fit or not.
Related: How to Deal with Bad Tenants
Learn How to Draft a Clear Rental Agreement
Once you’ve found the right tenants, it’s important to set clear expectations by writing a solid rental agreement. Include everything that you expect of them in terms of caring for the property and how they should handle repairs and maintenance issues. Make sure to indicate all the necessary information in the lease agreement, like rent due dates and penalties.
In addition to the lease agreement, you should also provide tenants with a welcome packet that outlines important information, such as emergency contacts and the location of utilities. It’s also best to include a move-in checklist so tenants are aware of the condition of the property at the beginning of the tenancy. It is because they are responsible for maintaining that condition.
Stay on Top of Maintenance and Repairs
One of the biggest responsibilities of being a landlord is maintaining the property. It includes everything from routine maintenance tasks, such as cleaning gutters and changing air filters, to performing repairs when something breaks. By keeping up with the said tasks, you can prevent larger, more costly repairs that are due to normal wear and tear.
To stay on top of maintenance and repairs, it’s a good idea to create a schedule of tasks that need to be done on a regular basis. You can schedule a regular inspection to ensure that the upkeep of your rental property is well-maintained. After all, regular inspections are necessary to ensure that your property is being cared for properly.
Effective communication is key when managing a rental property. It applies to both long term and short term rentals. You should be proactive about communicating with your renters, whether it’s about upcoming repairs or changes to the lease agreement. Or, in the case of short term rentals, about their bookings and what would make their stays more comfortable for them.
You should also be available to answer any questions or address any concerns they may have. You should also communicate regularly with your contractors or vendors who work on the property. It will ensure that everyone is on the same page and that any work done meets your standards.
Keep Accurate Financial Records
It’s important to keep accurate records of all aspects of your rental property. They include everything from rental payments to notices, as well as receipts for your expenses. Accurate records can help you stay on top of your business’s financials. They can also be helpful if you ever need to go to court for any legal issues or to file taxes.
Stay on Top of the Rental Trends
As a rental property owner and a real estate investor, you need to be updated with the market demands and rental trends in your local area. You need to understand the short term rental analytics if you invest in Airbnb and also know how to perform rental property analysis for long term rentals. Access to reliable market insights can help you make informed decisions.
Also, staying on top of rental trends can help you price your rental property accurately. Setting the right rental rates is crucial if you want to maximize your income potential and not miss out on opportunities. Pricing your rental unit too high will risk not getting it occupied. However, setting the price too low will let you miss out on opportunities to earn more.
Use the Right Technology
Real estate systems are essential tools that can help you manage your property efficiently. Fortunately, there are online real estate platforms that provide all the necessary tools and data that rental property owners need to become more profitable. You may also opt to find the best free property management software for small landlords or subscribe to reliable platforms.
The best real estate software available in the market today is Mashvsior. With Mashvisor, you will not only be able to manage your rental units effectively, but it can also help you grow your portfolio. The real estate website offers several tools that are useful for helping real estate investors succeed, no matter what investment strategy they use.
How Can Mashvisor Help You Manage Your Own Rentals
With Mashvisor, you can be your own best property manager without paying hefty fees to third-party property management companies. Mashvisor will not only help you assess the rental market to ensure that you make the right investment decisions. It can also help you search for profitable markets should you decide to build your portfolio and add more investments.
Here are the essential tools you can access when you subscribe to Mashvisor, which are useful for managing your long term or short term rentals:
With Mashvisor, you can easily see how a particular neighborhood performs when it comes to investing in short term and long term rentals through its neighborhood analysis tool. It is ane excellent tool that can help you check your local area and how the market is doing based on your investment strategy.
By getting insights about the neighborhood, you will know how to position your rental property to maximize your earning potential and stay ahead of the competition.
Another feature that will be useful for managing short term and long term rental properties is the access to accurate and up-to-date market insights. Such insights let you see how your market performs. You will also access a comprehensive rental comps analysis to know how your competitors stand. Through comparables, you’ll also determine how you fare against the competition.
Related: What Are Real Estate Comps and Why Are They Important for Real Estate Investors?
Mashvisor’s Dynamic Pricing tool is useful for managing short term rentals. The tool allows you to set the right rental rates for your Airbnb investment property based on factors like market demand, seasonality, local events, and booking history. Using the tool lets you maximize your gains, minimize your vacancies, and control your booking settings.
Using data from actual and active Airbnb rentals and other reliable sources, Mashvisor’s AI-powered technology and machine-learning algorithm will recommend the best rental rates. You can still control your prices by setting the base price, minimum and maximum prices, and other booking configurations. It helps ensure that the recommended prices meet your criteria.
Do you want to experience how Mashvisor’s Dynamic Pricing works? Start your 7-day free trial now.
You Can Be Your Own Best Property Manager With Mashvisor
If you own a long term or short term rental property, working with the best property manager can help reduce your workload. However, you need to pay property management fees based on the services that they provide. Sometimes, the fees could eat up into your profits. If you have the time to do so, managing your rental property yourself is also a great option.
To effectively manage your own rental properties, you need to be knowledgeable about the local laws related to operating either a long term or short term rentals. Make sure to learn the essential skills needed for efficient property management. They include planning your marketing strategies and how to conduct a thorough tenant screening.
What’s more, you also need to invest in the right technology that will help you gain insights into the current market trends so you can profitably manage your rental investments. Access to reliable real estate analytics and data is crucial if you want to maximize your income-earning potential.
The best real estate management and investment software available in the market today is Mashvisor. Not only does Mashvisor provide the necessary tools for finding the best investment property, but it also lets you access other features to help you become a successful rental investor. The tools include dynamic pricing, rental property calculator, and more.
Are you ready to experience what Mashvisor can offer? Schedule a demo today to find out how it works.