There comes a time with any business relationship if a contractor is not performing up to par, it’s time to terminate the agreement and get someone else to do the job correctly. However, as a landlord, you want to be sure you make the right decision and not assume immediately a contractor is a bad property manager. That said, some warning signs stand out, making it clear to a landlord when their property manager needs to be replaced.
Tenant complaints regularly connect with you. The whole point of having a property management service is that the contractor manages the property, not you. A bad property manager regularly triggers complaints being sent directly to a landlord, indicating the need for a fix quick.
There’s a visible lack of maintenance and repair at the rental. Again, you’re paying the property service to maintain your rental. If you do a walk-by or drive-by and the property looks like a dump, at the least the service is not monitoring the issue and at worst they are pocketing the commission money and not doing their job on upkeep.
The property manager never calls you back. Communication is key between a landlord and hired management service. If you find yourself constantly chasing the property manager to get basic answers, you’re being avoided. You’re paying for the service to be your proxy. That includes prompt communications and response to you as a client.
Financial and operational reports are regularly late. Along with communications, late and missing financial and rental operation reports are a red flag of a bad property manager. If unintentional, it’s a sign of poor organization and management by the service. If intentional, you could be missing some of your rental money or problems are being hidden from you regarding your rental. Not only does this create a management problem, it can also expose you to tax violations for missing or incorrect financial data being reported to tax agencies on rental property income.
Property compliance violations are piling up. Rental properties, particularly apartments, have to meet various municipal codes and criteria. The property owner can be cited otherwise. If a bad property manager is not actively avoiding these and citations appear in a landlord’s mailbox, it’s time to get a better manager as many such issues are very avoidable.
There are regular hiccups in your rental cash flow. This one should get an immediate reaction out of landlord paying attention. Good management services stick to a schedule and move rental income and payments timely. If a bad property manager can’t even handle the basic bread and butter of renting well, a landlord should cut the service immediately. Common problems typically are signs of bad cash flow management of the service, who may then be dipping into client funds to pay their own bills temporarily.
Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.
The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.
Call or e-mail us today for more information. We’re ready to get started!
