There are over 300,000 rental property management firms operating in the country.
These services can be integral to your success as a property investor. With a great property manager on your team, you can enjoy all of the perks of rental property ownership without any of the well-documented landlord stress.
So, how do you know if yours is doing a good job? With so many property management options out there, you need to constantly evaluate your team's performance to make sure they're the right fit for your needs.
Keep reading this post and we'll tell you the most important metrics to track the success of your property manager.
Occupancy and Vacancy Rates
One of the most important tasks for a rental property manager is keeping occupancy rates high. The goal is always to have high tenant retention due to having great tenants who are treated well by your property manager.
When you have high vacancy rates, it reflects very poorly on property management. Rental vacancies lead directly to a drop in income and are caused by poor tenant management or bad tenant placement practices.
If your units are always occupied by happy tenants, you know your property manager is doing their job.
Rent Collection
Rent collection is something that sounds simple, but can be a tricky task for property management. The actual act of rent collection should be streamlined. If it's not, you'll have frequent late payments from tenants, which may result in difficulty with accounting and bookkeeping.
The average arrears for any of your rental units shouldn't be more than a couple of days and a single month's rent at a time. If it becomes a nagging issue, it's symptomatic of a larger problem with property management.
Maintenance Costs
Rental properties go through a significant amount of wear and tear compared to owner-occupied properties. Your property manager should understand that part of their services should be to provide regular preventative maintenance to your investment properties.
You can get a sense of how well they're fulfilling this duty by examining maintenance costs. If your maintenance spending continues to rise, it begs the question of how effective their maintenance is and what they're missing during inspections.
Return on Investment
One of the easiest success metrics for property management is ROI. You know how much money you're putting into your rental property. If you did a thorough rental valuation before you purchased the property, you also know roughly how much money should be coming in.
When you see discrepancies between your financial projections and what's happening, you need to question your management. A good property manager should help maximize your rental portfolio
Is It Time for a Rental Property Management Change?
Look at all of these rental metrics - what are they telling you?
If your property manager isn't achieving the success you need for your investments, it's time for a change. Getting the best possible rental property management will quickly turn things around.
For those in Denver, the answer is PMI Elevation. We're part of one of the nation's largest property management firms, offering comprehensive and proven services. To learn how we can help your rental property thrive, contact us today.
