5 Steps to Choosing the BEST Property Manager

• Step 1: Look at how they advertise.

Scan the TradeMe ads, which company does the best advertising? Which company has the longest times between listing and letting?

We see plenty of ads where there is just one poor quality photo that doesn't show much, where the blurb about the property just states the basics.

Not surprisingly these tend to be the properties that were listed months ago and are still available.

Find a company that takes advantage of the internet's capabilities.  Do they use good quality photos that show the place in its best light?  Is the blurb evocative, does it sing the praises of the property?  Do they have a virtual walk through?  Do they use cryptic abbreviations or language everyone can understand?

What ads do you think are the most effective?  What ads have you wanting to have a further look at the property?  It will be the ones which show the property in its best light.

• Step 2: What’s your first impression?

Give the company a call. How friendly are the staff, how well do they answer your queries?  Do they put you at ease or make you feel uneasy?  If you leave a message how long does it take for them to get back to you?  Think about how they will make the tenants of your property feel.  If they are easy to talk to and prompt at calling back, tenants are more likely to apply for the property.

When doing landlord reference checks for our prospective tenants we have often had a hard time getting hold of existing landlords.  Understandably people aren't going to be available all the time but a good property manager will have an answer phone at least!  If you're having trouble getting hold of them, then how will prospective tenants organise a viewing time or tenants get hold of them in an emergency?

• Step 3: Ask all the right questions

Feel free to be nosey, after all these are the people who you are entrusting with one of your biggest assets.  Are they landlords themselves?  What associations do they belong to - Property Investor Associations or Independent Property Managers Association (IPMA)?  Why are they property managers?  What are their policies and procedures?  Do they have a code of ethics?  What is there philosophy on property investment - is it "just a rental" or is it “wealth building asset”?

If your property manager is also a property investor they have a greater understanding of the ups and downs of having tenants.  They will know very few property investors are cashed up millionaires jet setting around the world following the seasons.  They will realise if the rent goes unpaid, the money has to come from your wallet to pay the mortgage, and you will notice it.  Therefore they will try to limit times between tenants and will get maintenance done when it occurs to avoid costly repair jobs down the track.  They will pick tradesmen that are value for money.  This doesn't mean the cheapest, it means the ones who do the best quality work but don't charge an arm and a leg.  They will chase up rent arrears and make tenants accountable for their actions, even if it requires more effort on their part.

• Step 4: Make sure you are 'on the same page.'

Realistically not everyone in the world is going to get along with everyone else.  You need to find someone who has the same goals as you, and can communicate those goals, otherwise both sides of the party will just get frustrated.  You need to form a good relationship with them, so you must be able to trust them.  Ensure you are clear about what you want and make sure you understand what they expect from you – it should be a team approach.  If what you want does not fit their business model, find a company that does offer what you are after.

Your property manager should allow you to relax. They are there to do the hard work for you. They have an intimate knowledge on the Tenancy Act and how tenants think.  Ask some curly questions and see if they have the right answers.

• Step 5: What  background checks do they do?

Do they just take the first tenant to come along, or do they do rigorous background checks before offering your property to a tenant?  A bad tenant can cost you a lot of money.  If someone has a history of being a bad tenant then there is no reason why your property manager shouldn't know about it.  They should be checking references and qualifying the references as legitimate.  They should be sure about the prospective tenant before they give the green light.  I've heard some don't check references as they say "people can lie."  A good property manager will know what questions to ask; the right questions will uncover unsavory situations.  Background checking is crucial.  Other checks that should be done is a search of tenants Tenancy Tribunal history and their credit history.  You want to be sure they are careful choosing someone they give the keys to your retirement savings to.