Averting Rental Risks: Use 3D Vision When Seeking Residential Property Management

Residential property managers have two basic functions. They protect the value of your property, and they minimize your exposure to risk. 

Almost anyone can collect rent checks and handle common, low-level handyman issues. When you make the decision to trust your real estate investment to a property management team, you realize you need more protection. Here's how you know a management company takes risk management very seriously:

Documentation

One of the most important aspects of risk management is the paper trail. Every transaction with a renter, agent, municipal authority, utility company, and repair service must be documented and easy to find. 

Ask a potential property management firm how they handle such records. Do they know how long your state requires you to keep tenant and residential maintenance records? Do they have backup files of key data stored offsite from their offices? 

The right proof will shelter your rental business from risk. No proof at all makes you look guilty. Ensure you and your management team stay on top of all records.

Discernment

It's always cheaper in the long run to hire licensed and bonded contractors and to pay extra to receive expert advice. A competent residential property management team will have a host of resources to consult when there's a problem or a new project being planned. When selecting a property management team, ask to see their list of preferred vendors and contractors. A quick search will let you know if they hire credentialed professionals.

Property managers often hire licensed and bonded engineers to oversee any major building, renovation, or maintenance projects. This makes financial and risk-management sense, even if hiring an engineer is pricey. That's because the engineers will develop plan specifics, collect bids, and organize the projects. They will follow a checklist to mitigate any risks at the site. They also accept liability if anything goes wrong.

Great property management companies have their own repair and service teams, but they also know when a project will require more precise direction. They protect you by consulting the experts before taking huge risks. They know when to scrap a dangerous feature and when to insure an attractive one.

Discipline

Running a residential property management firm is exciting, fast-paced, and busy. Managers must keep occupancy rates high, ensure resident satisfaction and retention, fulfill unit service requests, and ensure energy efficiency of units. They must manage revenue, preventive property maintenance, and employee relations.

Despite these and many other responsibilities, your property management company should have regular business hours where contact with staff members is assured. There should also be a 24-hour emergency contact and a guaranteed response time for complaints and requests for service.

Look for a residential property management team that's diligent about following up with residents and contacts. A social-media-savvy management team is ideal but a less social team is fine if they have the wok ethic, experience, and diligence to keep you, your residents, and your property safe from risk.