{"id":168604,"date":"2024-02-27T16:14:00","date_gmt":"2024-02-27T23:14:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=168604"},"modified":"2024-03-20T00:47:47","modified_gmt":"2024-03-20T06:47:47","slug":"three-principles-for-effective-property-management","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/three-principles-for-effective-property-management","title":{"rendered":"Three Principles That Will Turn You Into An Effective Property Manager"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC9692944878\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><em>This article is presented by REI Nation. Read our&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/editorial-blog-guidelines\" target=\"_blank\" rel=\"noreferrer noopener\">editorial guidelines<\/a>&nbsp;for more information.<\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When people start investing in residential real estate, one of the biggest mistakes is neglecting the importance of solid property management.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We\u2019ve said it before: Your&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/blog.reination.com\/12-qualities-to-prioritize-in-your-rental-property-management-team\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">property management team<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;is your first line of defense. They are the best tool for maximizing your property\u2019s performance and value. Without them, even a good investment can turn sour.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Poor property management can take a great investment and turn it below average quickly. Good property management can keep average investments performing, and great management can take average investments and help them&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/blog.reination.com\/top-tips-for-increasing-the-profitability-of-your-investment-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">grow into fantastic returns<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;by holding down maintenance and vacancy.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It is very difficult to be good at property management\u2014it is an unforgiving business where your primary client, the property owner, reacts to what is happening at the moment.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We have had instances where properties remained occupied, paying, and thriving for five-plus years with relatively little maintenance and no vacancies. Yet, due to circumstances outside management\u2019s control, a resident falls behind, has to be evicted, or leaves early. The response is immediate dissatisfaction with management.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Property management is a thankless service with challenges around every corner. So, what sets excellent management apart from lousy management and lousy landlords? You might be surprised.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What are the Biggest Grievances Residents Have?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Conflict is inevitable. There\u2019s no guarantee that everyone will be happy and satisfied at all times. Issues come up. We hit bumps in the road.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, so many of the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/blog.reination.com\/what-rental-residents-really-want-from-sfrs\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">common complaints by rental residents can be avoided<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;with the right team at the helm.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to various surveys and general data, these are the top complaints residents have against landlords and property managers in both&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and single-family housing. These issues are the main reasons that residents look for new housing, even when they love the property or location. If we can address these issues on the front end, the likelihood of keeping residents longer and at modest rental increases rises.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Lack of maintenance<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">One of the most frequent complaints from tenants is delay or neglect of maintenance and repairs. Residents can become frustrated when management fails to address issues promptly, leading to discomfort and potential safety hazards. If you\u2019ve ever had to wait to get a necessary appliance or problem fixed, you know how frustrating it can be to work around it.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Problems become magnified when they are comfort or quality-of-life issues. Unclean, unsanitary, and unsafe housing conditions can fast-track vacancy.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Communication issues<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Poor communication between managers and residents can lead to misunderstandings, confusion, and frustration. People often complain about unresponsive landlords or property managers who do not effectively address their concerns. Residents need to feel acknowledged, heard, and valued.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This ranks high on the list of issues that are most frustrating for renters. It is not simply a lack of good communication, but often a lack of communication, period. If you are hiring a property management company and are having communication and connection issues, imagine how difficult it is for a renter.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Unfair rent increases<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sudden, significant rent increases strain resident budgets and leads to dissatisfaction. Tenants will be unhappy if they feel the rent increase is unreasonable or not in line with market conditions.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We get it\u2014rent increases are inevitable with the market the way it is. However, try to be understanding. Cash-strapped residents perceive that they\u2019re being charged more for less. Make sure you\u2019re&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rent-increase\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">raising rent appropriately for your market<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Lack of transparency<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Residents may complain about hidden fees, unexpected charges, or unclear lease terms not communicated upfront. This is really a communication issue, but gets broken out into its own category when it seems like a company or landlord is hiding something.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Transparency about costs and expectations is crucial for maintaining trust between both parties. Management should include notice well in advance when residents will be affected. They also need to be skillful and thorough in drawing up all contracts to prevent legal disputes.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Security deposit disputes<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Disputes over&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-security-deposit\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">security deposit<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;returns are common. Residents may feel that landlords unjustly withhold portions of their deposits for repairs or cleaning, leading to conflicts.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Your management team must document the property\u2019s condition before and after the move. Additionally, what qualifies as natural wear and tear and what constitutes revoking a security deposit need to be clear.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Quality of housing<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Complaints about the overall quality and condition of the property, such as outdated appliances, lack of insulation, or poor construction, can affect resident comfort and satisfaction. This exacerbates other issues, too. Management must preserve the quality and value of your property\u2014not just for the residents\u2019 sake, but for yours!&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Three Principles that Guide Great Property Management Teams<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Now that we know the common grievances against landlords and managers, we must discuss the principles that help avoid them. These guide and set apart mediocre managers from the best in the business.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. <span data-preserver-spaces=\"true\">Residents are valuable<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">First and foremost, your residents are valuable, and you\u2019ll want to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/blog.reination.com\/the-best-strategies-for-actually-reducing-rental-turnover\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">reduce resident turnover<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tenants are people with their own lives, concerns, hopes, and dreams. Your property provides a safe haven and home for them. They are more than a monthly paycheck and a means to an end. Investing in real estate is an inherently relational business. Because of this, building lasting relationships creates lasting success!&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If your management team respects and cares about residents, it will show in their service.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <span data-preserver-spaces=\"true\">Consistency is key<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Consistency makes all the difference in the world. Residents and investors need to know they can rely on management. This means they are reliable, predictable, and consistent. They stick to the rules, act ethically, and make a point to be reasonably available.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This consistency is empowered by a straightforward operating procedure that creates reliability for individual residents and investors across all their managed properties.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. <span data-preserver-spaces=\"true\">Details matter<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Finally, details matter. Great managers understand the value of doing things right. They don\u2019t settle for \u201cgood enough\u201d but pursue solutions that create long-term value and a stellar experience. Even if the problem seems insignificant, they do their best.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For investors, attention to detail mitigates future issues from snowballing and maintains the value of your property.<\/span><\/p>\n\n\n\n<div class=\"wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n    \n  <div \n    id=\"segemnt-view-event-block_624f52525847f\" \n    class=\"  \"\n    x-intersect:enter.once=\"\n      analytics.track('DoorLoop Blog Sponsor View', {\n        referrer: 'https:\/\/www.biggerpockets.com\/blog\/three-principles-for-effective-property-management',\n              })\n    \">\n    \n  <\/div>\n  \n\n\n<h3 class=\"wp-block-heading has-text-align-left mt-0\"><strong>This article is presented by REI Nation<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1408\" height=\"1408\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO.png\" alt=\"\" class=\"wp-image-165214\" style=\"aspect-ratio:1.7777777777777777;object-fit:cover;width:452px;height:auto\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO.png 1408w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO-300x300.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO-1024x1024.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO-150x150.png 150w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO-768x768.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/01\/REI-NATION-LOGO-200x200.png 200w\" sizes=\"auto, (max-width: 1408px) 100vw, 1408px\" \/><\/figure>\n\n\n\n<p>Ready to add turnkey real estate to your portfolio in 2024? If so, now\u2019s the time to invest with REI Nation. Where you invest, and they handle the rest.<\/p>\n\n\n\n<p>Discover stress-free real estate investing with the largest family-owned turnkey investment company, REI Nation. Whether you\u2019re a seasoned investor or just starting, they are dedicated to helping you achieve your financial goals in the world of real estate investing. Visit our <a href=\"https:\/\/hubs.ly\/Q02hh_nR0\" target=\"_blank\" rel=\"noreferrer noopener\">website<\/a> to start your turnkey real estate journey, where your success is their commitment.<\/p>\n\n\n\n<div id=button-custom-event-block_63c9a33918e17 class='button-custom-event'>\n      <a href=\"https:\/\/hubs.ly\/Q02hh_nR0\" x-on:click=\"window.analytics.track(&#039;Sponsored Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/three-principles-for-effective-property-management&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn more about REI Nation<\/a>\n  <\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The top grievances of tenants are poor communication, unfair rent increases, and a lack of transparency. Don&#8217;t neglect property management, as it will cost you more in the long run. These three principles will help you maximize its impact.<\/p>\n","protected":false},"author":676,"featured_media":168607,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183,7119],"tags":[],"class_list":["post-168604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/168604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/676"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=168604"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/168604\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/168607"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=168604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=168604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=168604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}