An owner of a property should have a close relationship with the property manager to get the best results, says Craig Tice, Chief Operating Officer of LB Property Management, based in Sherman Oaks California. LB, which has offices in both California and Arizona, has been listed in the top 25 property management firms in Los Angeles for the past ten years. Here, Craig talks about why having both owner and property manager working closely together is always the ideal scenario.
There are many different approaches to being a property owner and working with a management company. Some owners are very hands-off. They buy properties and rarely see them if ever; instead, they rely entirely on their property management companies to take care of their investments. Their involvement consists of reviewing their financial reports each month and depositing their checks.
This is not the most profitable relationship for a property owner. The most profitable relationships are collaborations between owner and property manager, with regular and consistent communication. The more hands-on an owner is, the more profitable his property is likely to be.
Close Alignment of Both Parties
Any management company that tells you that it can manage your property just as profitably as an owner is not shooting straight from the hip. Properties perform best are when the strength of the management companies are coupled with the owner’s interest, and those interests are in close alignment with each other at all times.
If, for example, a property management company cannot afford to grind down the price of every bit of maintenance, not everything that goes on the property will go down to the rock bottom price. But when there is collaboration and both owner and manager are pooling together - whether it is a maintenance issue, insurance issue, or tenant relationship issue - you end up with a better result, whether it has to do with pricing or customer service.
Involved in Day-to-Day Operations
There are certainly many property owners that do not have the time or the desire to be involved in the day-to-day operations, and those properties can still perform well. But the performance can be enhanced by the addition of other professionals. Those can include an accountant with a strong real estate background, or good general contractors when you need to make ample improvements. Accountants can bring better strategies for tax advantages, and experienced contractors can bring better long-term corrections or improvements to the property that, in turn, will bring value to the bottom line.
As a property owner, you’ll be doing your part to maximize your investment by developing a hands-on, communicative relationship with the property manager you hire.
