According to Gitnux, the average tenant turnover rate is 54% every year, and the average cost is $1,750. Hiring an efficient property manager can help you cut costs and reduce vacancies.
It ensures your property is in good condition to avoid frequent repairs that are expensive and frustrating for tenants. But, if you entrust your investment to an unprofessional property manager, you will suffer losses.
Many people are moving to Memphis because its cost of living is lower than in other cities. As a property owner, you should take advantage of the market to increase your income and get more returns on your investment.
Here, we’ll discuss signs indicating you have an unprofessional property manager. We’ll also provide tips on what to do and explore the benefits of efficient management.
Poor Communication
Proper communication is vital in any professional relationship, including property management. Poor communication can manifest in ways such as:
- The property manager rarely responds to your calls or texts
- They take too long to respond
- They provide vague or incomplete information
Sometimes, your property manager may communicate but omit some information. For example, they may contact you about repairs and fail to mention what caused the damage. They could also fail to disclose some tenancy concerns, leaving you in the dark about your investment.
If you are dealing with such issues, your property manager isn’t prioritizing your investment. Ignoring you or communicating poorly will worsen tenancy issues, leading to a high turnover rate.
Frequent Maintenance Delays
Frequent maintenance delays prove that your property manager isn’t competent. It shows that they neglect your investment and don’t have a streamlined system for dealing with repairs.
If you randomly visit your investment and find broken systems, you are dealing with a property management issue. Chances are the tenants informed your manager about the problem, but they ignored it. They may also be working with unreliable contractors that delay repairs.
Inconsistent Rent Collection
Rent collection should be relatively easy, but with lousy property managers, it can be stressful. They may fail to collect rent on time and not charge tenants late fees. If your property manager isn’t keen on the collection, they most likely don’t take their responsibilities seriously.
Ultimately, the delayed payments affect your bottom line and mess with your financial plans. Tenants may also take advantage of the situation because they know there aren’t any penalties for paying their rent late.
The Lack of Financial Transparency
Buying or building a property in Memphis is a significant investment, and you’d want good returns. It’s essential to know how the person you entrusted to manage your property uses your money. They should provide detailed reports on matters such as:
- The amount of rent collected
- Lease renewal fees
- Advertising costs
- Eviction costs
- Routine inspection fees
When your property manager doesn’t send reports, you can’t tell if they manage costs efficiently. Besides, they may try to sneak in some fees without explaining them, increasing your expenses.
If you’re dealing with such issues frequently, that’s a major proper management red flag.
Frequent Legal Issues and Missed Deadlines
A competent manager should know local laws and regulations on rental properties. If yours frequently deals with legal problems, they are generally unprofessional. Such issues could range from failing to meet health and safety standards or breaking tenant contracts.
Missing legal deadlines or failing to follow rental agreements is another sign of a bad property manager. If you don’t take action, tenants may sue you, causing losses and damaging your reputation.
What to Do About an Unprofessional Property Manager
It may be tempting to keep a property manager if a friend referred them or you’ve worked with them for a long time. But if they aren’t professional, you won’t be able to maximize the earning potential of your investment. Likewise, you’ll lack peace of mind since you don’t trust how they deal with your tenants.
Here are the steps to take to protect your investment:
- Have written proof of all your interactions with the property manager
- Review the property management contract
- Communicate your concerns
- Escalate the issue to their supervisor
- Consider legal options
- Find a new property manager
- Terminate the contract
Keeping records of all interactions with your property manager will help you have proof once you raise your concerns. It ensures you have a solid reason for breaking the contract or forwarding your complaint to the supervisor.
You can use the following:
- Their texts to prove communication issues
- Financial reports to raise misappropriation concerns
- Tenant’s review and feedback
- Rent collection receipts
You may need to take legal action if your property or income is at risk due to mismanagement. Talk to an attorney to review the contract to identify breaches. The expert can also help you recover damages if the manager’s actions caused financial loss.
How to Choose a Property Manager in Memphis
A report by Strategic Market Research shows there were 124,866 property managers in the US in 2023. Once you break your contract and it’s time to find a new manager, consider their reputation.
A good property manager should be known for their professionalism and competency. They must have good reviews, and if you can’t find any online, ask them for a list of references. After that, contact these to evaluate the manager’s work ethic and assess if they will meet your needs.
Other factors to consider when looking for Memphis property management include:
- Local market expertise
- Industry knowledge
- State licensing
- Availability and communication
- Tenant retention strategy
Property managers offer various services, so ensure your chosen firm aligns with your needs. An ideal one should screen tenants by performing thorough background and credit checks. They should also handle maintenance by hiring vendors or having their own team.
Contact Reedy & Company for Unrivaled Property Management
An unprofessional property manager doesn’t just cost you tenants. They can neglect your property and hide costs, causing significant financial losses. Finding a reliable manager protects your investments and gives you peace of mind.
At Reedy & Company, we can help you avoid property management issues with our reliable services. We understand the value of your investment, so we balance the needs of tenants and your interests. Contact us for an inquiry.
