Why You Should Hire an Internal Property Manager

Written By Amelia McGee

Hiring a property manager is a critical decision that can significantly impact the success of your real estate investment business. A property manager plays a key role in overseeing day-to-day operations, tenant relations, and property maintenance. Instead of choosing between self-managing and hiring a property management company, every investor should consider hiring their own property manager. In this guide, we are going to break down why you should hire an internal property manager and how to do it!

Let’s start with the benefits of hiring your own property manager. You will…

#1 Pay a fraction of the cost of a property management company.
#2 Have higher quality when it comes to responsiveness.
#3 Get better control of the tenants you accept.
#4 Have happier tenants which means more money for you!
#5 Have the flexibility to hire someone part-time or full-time based on the size of your portfolio.
#6 Find someone that can grow into other roles as your business grows too!

Now that you’re convinced to hire your own internal property manager, here’s how to find and hire one:

Define the Role: Clearly outline the responsibilities and expectations for the property manager. This may include tasks such as tenant communication, lease administration, rent collection, property maintenance oversight, and more.

Experience and Qualifications: Look for candidates with relevant experience in property management, preferably in the real estate sector. A background in real estate, business, or a related field can be beneficial. Check the licensing requirements in your area and ensure that the candidate has the necessary certifications to manage rental properties. This might include real estate licenses or property management certifications. Consider these skills when looking for an internal property manager:

  • Legal Knowledge: Property managers need to be well-versed in local landlord-tenant laws and regulations. Ensure that the candidate is familiar with the legal aspects of property management in your specific location.

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  • Strong Communication Skills: Effective communication is crucial in property management. Look for a candidate who can communicate clearly with tenants, contractors, and other stakeholders. This includes both written and verbal communication skills.

  • Organizational Skills: Property managers often juggle multiple tasks simultaneously. A candidate with strong organizational skills can efficiently handle responsibilities such as rent collection, property inspections, and maintenance requests.

  • Problem-Solving Ability: Property management involves dealing with various challenges, from tenant disputes to maintenance issues. A good property manager should be adept at problem-solving and making sound decisions under pressure.

  • Financial Management: Property managers are often responsible for budgeting, rent collection, and financial reporting. Look for a candidate with a strong understanding of financial management principles.

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  • Technology Proficiency: Property management software and other technological tools are commonly used in the industry. A candidate who is proficient in using relevant software can streamline processes and improve efficiency.

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References and Background Checks: Conduct thorough reference checks to verify the candidate's work history and performance. Additionally, perform background checks to ensure a clean record.

Interview Process: Develop a comprehensive interview process that includes questions about the candidate's experience, problem-solving abilities, and knowledge of property management practices. Consider scenarios that they might encounter in the role. You’ll also want to consider how well the candidate's values and work style align with your real estate company culture. Remember, a good cultural fit contributes to a positive and productive working environment.

Trial Period or Probation: Consider implementing a trial period or probationary period to assess the candidate's performance on the job before making a long-term commitment.

Hiring an internal property manager comes with numerous advantages, from cost savings to enhanced tenant satisfaction and the flexibility to tailor the role to your specific needs. To find the right candidate, define the role clearly, prioritize relevant experience and qualifications, assess essential skills like legal knowledge and communication, leverage technology, conduct thorough checks, and implement a trial period for a comprehensive evaluation. By following these steps, you'll be well on your way to securing a skilled and effective internal property manager for your real estate business.

RESOURCES:

Amelia McGee
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