When you consider everything a property manager Bangalore does for your rental properties - finding and placing tenants, collecting rent, and dealing with maintenance and repair issues - it's easy to see how important it is to choose the right one. It truly makes a difference: a good property manager can increase your profits and give you peace of mind, whereas a bad property manager can reduce your returns and drive you crazy.
In this article, we'll go over how to choose a property manager after you've decided on an investment market. We will break down the process into five major steps:
Step 1: Generate a List of Property Managers
The first step is to create a list of property managers (PMs) who work in your market. The Google machine, as with so many other things, is a valuable ally here; just Google "property manager Bangalore" to start your list.
In your online research, you may also come across others who have done some preliminary legwork for you and published lists of property managers in Bangalore. These lists can be useful not only for brainstorming options but also for narrowing the field in Step 2.
Finally, you can ask for property manager Bangalore on online forums (such as Facebook groups devoted to real estate investing).
Step 2: Narrow the Field
Your next step is to narrow your list down to three finalists, though you could choose up to five. Remember that you'll be doing a 30-60 minute phone call with each finalist, so don't go overboard.
When narrowing your list, look for the "market leaders" in your investment area. This generally refers to the leading companies with the most properties under management. You could say, "Shouldn't I be looking for a property manager who will provide the best personal service to me and my tenants and truly care about us?" A large property manager sounds very impersonal, and I'm afraid they won't care about me or my property."
This may seem odd, but you don't want personalized service; you want established and reliable systems and processes. For example, think about Amazon: despite providing zero personal services, they consistently rank near the top of customer satisfaction surveys. This is because they provide a consistent and user-friendly shopping experience that customers can rely on.
To narrow your list, you must identify the big players and eliminate the smaller ones. You'll know who the big players are because:
They will have the most properties under their management. If you can't figure out how many doors they manage from online sources, just call or email them and ask.
They will have a professional website. Professional property manager Bangalore will have a strong online presence. If a PM doesn't have a website, or if it's amateurish, it's a sign they're one of the "little guys."
They will have links to Owner Portal and Tenant Portal log-ins. This is a sign that they're using legitimate property management software, which is important to achieving process automation.
They will have listings of available rental properties on their site. While not all property managers will have this, most will. It's also an easy way for you to see how well they market their properties by looking at the photos, descriptions, etc.
Step 3: Interview the Finalists
Email each of your finalists, introduce yourself as an investor looking to buy properties in Bangalore, and request a phone call to clarify any doubts. Here are the five main topics you should definitely ask, along with a sample of questions for each:
Company Info: how long have they been in business; how many employees do they have; how many properties they manage; etc.
Fees: what is their leasing fee; what percent of rent do they charge; what fees do they charge tenants; etc.
Maintenance & Repairs: how do tenants report issues; whom do they contract with for repairs; do they perform regular home inspections; etc.
Collections: how do tenants pay rent, do they have a dedicated Collections team; what is their end-of-month collections rate; etc.
Leasing: what is their current occupancy rate; how do they screen tenants; how do they market vacant properties; etc.
Step 4: Choose a Property Manager
Based on all the information you've collected in Step 3, making an informed decision will be much easier for you. So go ahead and do it!
A PMA, or Property Management Agreement, will be sent to you by your chosen property manager. You should double-check this document to ensure it matches what you were told over the phone, especially regarding fees.
After you sign the PMA, your property manager will create an online account and log in for you, assign someone your primary point of contact, and you'll be ready to start adding properties to your portfolio!
Step 5: Validate Your Choice
As you progress through the first few months of your relationship with your PM, analyze whether they are delivering the results you expected. Are they keeping their promises? Is your point of contact able to provide timely and accurate responses? Are the monthly statements clear? Are there any red flags popping up?
You should address any issues head-on. Use specific examples to inform your property manager Bangalore that you are not receiving what you expected. Allow them the opportunity to improve and make things right.
You may have to do this more than once, especially at the beginning as you get to know each other. Don't be alarmed by this. Things may not go perfectly initially, but open communication and setting clear expectations are important for improvement. Your ultimate goal is to get into a good rhythm with your PM, have faith in their actions, and spend as little time as possible looking over their shoulder.
However, if there are TOO many red flags and/or the same issues keep repeating, you may need to consider hiring a different property manager.
Your property manager Bangalore (literally) holds the keys to your portfolio. Selecting a competent, professional PM can make all the difference to your bottom line and your state of mind. You can also visit our website to learn more about PropertyAngel.