{"id":10142,"date":"2018-11-16T12:02:00","date_gmt":"2018-11-16T20:02:00","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=10142"},"modified":"2019-01-18T13:59:06","modified_gmt":"2019-01-18T21:59:06","slug":"property-manager-owner-relationship","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/property-manager-owner-relationship\/","title":{"rendered":"Property Manager\u2019s Guide to Finding and Keeping Great Owners"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-10409\" src=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2018\/11\/Property-Manager\u2019s-Guide-to-Finding-and-Keeping-Great-Owners-compressor.png\" alt=\"keeping great owners\" width=\"600\" height=\"352\" srcset=\"https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2018\/11\/Property-Manager\u2019s-Guide-to-Finding-and-Keeping-Great-Owners-compressor.png 600w, https:\/\/www.rentecdirect.com\/blog\/wp-content\/uploads\/2018\/11\/Property-Manager\u2019s-Guide-to-Finding-and-Keeping-Great-Owners-compressor-300x176.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Finding the right investors and would-be clients is an important task for a successful property manager. And continuing to build your portfolio with more clients can be a chore, but once you have the tools of the trade down, you may find that some of the owners knocking on your door are not a good fit. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good owner-manager relationship is the key to ensuring that everything runs smoothly for everyone involved. Because of this, there is a surplus of information out there for owners about how to ensure that they find a great property manager, and&#8211;similarly&#8211;when to fire a bad property manager. However, just as a bad property manager can spell disaster for tenants and the renting process, having a bad owner can cause undue stress to a property manager. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sometimes personalities don\u2019t mesh, or owners are unwilling to cater to your management style. How do you know when it\u2019s time to dissolve a manager-owner relationship? You already know how to find and <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/insiders-success-guide-to-tenant-screening\/\"><span style=\"font-weight: 400;\">screen for the best tenants<\/span><\/a><span style=\"font-weight: 400;\">, and you also likely know <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/legally-evict-tenant\/\"><span style=\"font-weight: 400;\">how to evict a tenant<\/span><\/a><span style=\"font-weight: 400;\"> if the relationship turns sour, but what about some helpful tips on how to help property managers to choose the right owners and their properties for your portfolios?<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">How to Interview Owners for Your Portfolio:<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Whether you are starting a new property management business or looking to add to your portfolio you might be tempted to take on any and all properties to manage, however that is not always a good idea. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is important to set your standards on what you would consider \u201cacceptable\u201d for your business and to maintain the status of a reputable management company. While it can be tempting to say yes to every new owner, now might the time to practice saying no, when you can tell an owner won&#8217;t be a good fit with you and your business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">A client whose needs and desires do not match your business practices will create unnecessary friction and time loss. Even for those starting out and searching for new clients, your time may be better served by using it to find clients with which you get along well. For this reason, it can be important to interview owners before adding their properties to your management portfolio.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Preliminary Questions You May Want to Ask:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Why is the owner seeking management services?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What are their expectations?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Do they want <\/span><a href=\"https:\/\/www.rentecdirect.com\/blog\/what-does-a-property-manager-do\/\"><span style=\"font-weight: 400;\">full management services<\/span><\/a><span style=\"font-weight: 400;\"> or tenant placement only?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How would they like to handle repairs\/ maintenance? <\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What are their expectations of what the tenants&#8217; responsibility vs. their responsibility? <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> How would they like you to handle yard care? \u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tenant Responsibility? Vs. Hire yard care?<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How would they like you to handle rental income? <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> When would they like to receive their owner disbursement? Does it fit into your system on when\/how you pay owners?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> Does the owner have a current mortgage? If so do they feel they can make the payment in the event they are not receiving a rent payment?<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Interviewing Your Prospective Property Management Clients:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you are satisfied with your prospect\u2019s answers to the preliminary screening questions, there are ways to dig even deeper before adding an owner\u2019s property to your management portfolio. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do a walkthrough inspection with the owner so you can note things that might need to be done prior to renting. If there is already a tenant, the walkthrough will give you an overall view of the current condition and an overall feel on how well this tenant is taking care of the property. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finding out if this type of property fits into your portfolio, and if it represents the overall condition of your company can be key. \u00a0When meeting with your potential new owner as you begin discussing the property, find answers to the following questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If there is a tenant what is their payment history? <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is the house being transferred from another management company? \u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Did the owner fire the previous property manager, or vice-versa? Why is the owner changing management? <\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is this the first time they are offering this home as a rental and was this their primary residence?<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keep in mind that some people who have only one rental tend to be a little more attached and sentimental the those who are investors&#8211;particularly if the rental is their former place of residence.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is the home located in a HOA? \u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">If so request a copy of the HOA rules and specifically, find out their regulations in regards to tenancy.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Where does your owner reside? <\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is it in your business practices to accept out of state or international owners? <\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Finalizing The Agreement<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Remember, an owner who is doing their due diligence will likely want to interview you as well. During this process, it can be a good idea to glean a sense of their overall financial health. Their financial goals and their current financial situation will have a direct impact on how they handle repairs, mortgages, and other expenses. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If nothing so far has raised any red flags, it\u2019s time to agree upon and negotiate management fees. Give the owners a copy of your lease agreement, management agreement and other state required forms to complete. If they have any questions or disagreements, truly evaluate if it would be best practice to negotiate on the issue.<\/span><\/p>\n<h2><\/h2>\n<h2><span style=\"font-weight: 400;\">How to Fire an Owner:<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Unfortunately, there will be times when an owner and a property management team do not work well together. Tenants can suffer in these instances, and so can your management team.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Indicators That It\u2019s Time to Fire an Owner:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is no mutual respect between you and your client. \u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">After attempts to meet and resolve any issues, your relationship is not improving.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The clients have a sentimental connection with the property, and that is impeding your ability to manage it properly.<\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">When you are managing owners\u2019 personal property some clients have such an emotional connection, that it is difficult for them to turn it over to a property manager. \u00a0(This is most common especially if it was their first home or family inheritance.) You need to be sensitive to their feelings but not allow them to jeopardize what you know is best practice, legal, or meets your standards of business.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Overarching personality indifferences. <\/span>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business owners tend to neglect their own personal experiences all in favor of making more money, but at times it is just not worth jeopardizing your personal and business health.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Final Thoughts <\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Client relationships are tricky especially when you are the owner of your business and you&#8217;re trying to build your portfolio. It\u2019s easy to assume that when there are clients that you might not get along with, you need to try to make the relationship work. Speaking with troublesome owners is the first step to resolving an issue. \u00a0Trying to work out your differences to save the relationship and retain the business should always be your first step. If you still find yourself stressing over managing their properties or working with this particular client, it might be time to move on and encourage the owner to find another manager who can better serve their needs.<\/span><\/p>\n<hr \/>\n<h3>RELATED READING FOR YOU:<\/h3>\n<ul>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/what-owners-want-to-know-faq-from-rental-property-owners\/\" target=\"_blank\" rel=\"noopener\">What Owners Want to Know &#8211; FAQ From Rental Property Owners<\/a><\/li>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/decorating-your-office\/\" target=\"_blank\" rel=\"noopener\">A Property Manager&#8217;s Guide to Decorating Your Office<\/a><\/li>\n<li><a class=\"yoast-link-suggestion__value\" href=\"https:\/\/www.rentecdirect.com\/blog\/agile-property-management\/\" target=\"_blank\" rel=\"noopener\">10 Tips On Creating More Agile Property Management Teams<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Finding the right investors and would-be clients is an important task for a successful property manager. And continuing to build your portfolio with more clients can be a chore, but once you have the tools of the trade down, you may find that some of the owners knocking on your door are not a good [&hellip;]<\/p>\n","protected":false},"author":16,"featured_media":10409,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"iawp_total_views":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[275],"tags":[29,582,804],"class_list":["post-10142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-property-management","tag-property-management-advice","tag-property-manager-tips","et-has-post-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Property Manager\u2019s Guide to Finding and Keeping Great Owners<\/title>\n<meta name=\"description\" content=\"Knowing to interview owners is vital to building great relationships from the start. 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