Property Management Skills of the Pros

What skills and qualities do the top property managers and rental property owners–the pros–have that the rest of us can learn from?  Not surprisingly, all of them are the same as those that guarantee success in any business. And fortunately, these are skills and qualities that we can acquire and practice. Here are some of them.

Keep Good Records
The pros always know exactly where they stand. Whether it’s tenant records, property maintenance records or financial records, the pros can put their hands and eyes on the figures in an instant and know how it corresponds to their budget and plans.

Without good records, both financial and of the property, you simply don’t how you are doing. But there’s more; a lack of good records is not just an inconvenience that will cost you extra time and trouble, it can be deadly to your bottom line.  I watched as one property management company lost an eviction for nonpayment of rent because its rent records were so bad that they couldn’t prove that the tenant actually had not paid the rent.

Even if your records aren’t that bad, poor record keeping will result in higher repair bills, poor customer relations with your tenants, bad credit history, late fees with your suppliers, and just general all-around confusion.

Realize the Importance of Your Customers
There is no question in the pros’ minds who their customers are: their renters. These customers pay thousands of dollars a year in rent, and in doing so pay the mortgage, property taxes and insurance—plus, even turning the owner a profit.

The pros put their tenants first by studying good customer service and applying the principles that work with their property and tenant base.

Watch the Bottom Line
The pros know that their bottom line, the amount they take home from their rental property business, is determined not just by the big things, but by all the little things. The big things, of course, are such things as good tenant selection and intelligent property purchases. And they are expert at those two pieces of their business. But just taking care of those will not guarantee earning as much as they should from an investment property.

They are conscious of the things that cost them money and places where they can save money, but still provide the customer service needed to keep their good tenants.  One way is through good records, but they are also good budgeters, and are always looking for the best buys and for newer and better ways to do things.

They were the first to get computers to keep track of their businesses, they were the first to take advantage of new and better products for building maintenance and repair–things that pay back in less than a year. They are not afraid to spend a little money to make a lot.

Have a System
Checklists, procedures, double checking and careful attention to how every system in their business works are sure signs of a pro.  They don’t leave anything to chance, so they have worked out a system and/or procedure for every facet of their business. There is an axiom that there is no such thing as a good surprise in business, so the pros don’t want to ever be surprised.

Join Associations
Pros keep up with trends and news, so they always join their local apartment, multifamily and landlord associations. That’s one of the sources for their news and is a place where they can meet and exchange ideas with other rental property owners. It also gives them ready access to property management services and the latest rental property forms written specifically for their states and localities.

Get Training
The pros realize they can never know enough. The things they learned last month or last year were important, but they forgot some of them, and some of the things they learned changed, such as their state’s landlord tenant law. So every year they have a plan for more training. You will see them there early, getting a front-row seat, so they won’t miss a word. They ask questions and think about how the things they learn affect their business and their bottom line. There’s no way they will be surprised.

Always Have a Plan
No matter what part of their business or life, the pros have a plan written out. When they buy a property, they have a plan for when they are going to sell it. As they own a property, they have a plan for capital improvements, for maintenance and for repairs. As they deal with tenants and applicants, they have a plan for getting and keeping the best ones. And for the rest of their lives, they have figured out where they are going and how they are going to get there.

Most of being a pro lies in your attitude toward your rental property business. Once your attitude is like that of a pro, the rest begins to fall into place. Your first step? Realize that as a rental property owner you are in business. Then, think of where you want your business to be in five, 10 and 20 years–then go to work putting your business on top.