Your property manager isn't doing their job. How can you make them step up?

I find it helpful to ensure they know their goals and expectations by reiterating them and ensuring they are clearly defined.

Using the right CRM is a must!, understanding the most important KPI's and always working to grow NOI without sacrificing OPEX needed to keep the property always on top. If a porperty manager doesn't understand at least that, they should be in a different line of business. We actually took over a previous property manager and doubled the value of our prorperties in 4 years, and went from a mid 70's ocupancy to an 89% occupancy in the same period, while getting stronger tenants and improving the overall health of our portfolio and also lowering expenses. We've been on both sides and understand what it takes to make a property improve on its performance.

Review your contract; Look for specific deliverables and required performance. Review the contract for terms and conditions around cancellation, the needed cancellation period, and did they lock you in initially? Many companies (like Bell Properties, Inc.) write contracts that are month to month - because our owner clients should be pleased to work with us, and we should be delivering every day, on every promise - if not we want owners to be able to cancel easily and with a minimum time frame. If your property management service is not performing - start with a written request for better reports, financial statements, access to their owners portal, if they don't deliver within a week, cancel your agreement.

Put boots on the ground! Go visit them in person. Shadow them. Get a feel for their day, and then, make helpful, insightful boundaries to set them up for success. Always my step ONE.

Provide an understanding of why the work is important, provide clear instructions, measure milestones if necessary, and hold them accountable for results

Timely feedback from client and property managers is the key. While it is important for client to provide feedback, it is also very important for property Manager to provide feedback to client proactively on things where they need support or decision from client.

There are times where clients can be extremely difficult and the property managers do not always have the right information to clarify and rectify issues immediately. Hence, we have a process where management will get involved and help the property manager answer and get to the bottom on the query and even if the property manager has made a mistake to ensure that they are backed up by the management and a collective solution is realised.

- Define clear KRA's - Commission should be linked to KRA'S, Example a seamlessly managed property with desired revenue stream from PM can be incentivised with additional commissions ( Incentives) - Owners appoint PMs to minimise their time involvement in managing the property, hence PMs prerogative would be to maintain the same. - Regardless of disputes, it's PMs maximum responsibility to ensure seamless execution and coming with solution under defined terms and conditions. - Too much of owners involvement kills the purpose of PMs.

Replace Them. ?? ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….

Feedback is key. Those in property management typically never hear "thanks". So reinforcing positive actions is just as important as addressing concerns you may have with a property's performance. But when you are addressing issues you consider potentially problematic, it is best to express your concerns in a formal letter referencing the contract sections.

When it comes to resolving conflicts with your property manager, communication is key. Approach the situation with respect, understanding, and an open mind. Listen to their side of the story, and be willing to find common ground through compromise. However, if things aren't improving and your manager isn't holding up their end of the bargain, don't hesitate to address the issue directly. Keep records of your discussions and agreements to ensure clarity and accountability moving forward.

Often times, the expectations of the client do not match the reality of the Manager's work in the field. There are complicated legal restrictions in many states that prohibit efficient action for violations or collection issues, as well as, other protections for tenants that prohibit the ability to expedite change.

It is fundamental to know what is the agreed scope of engagement of the manager. Further, some matters cannot be completed without external inputs or authorizations.

Instead of solely pointing out problems, come prepared with potential solutions or suggestions for improvement. This demonstrates a proactive approach and willingness to work together. While expressing your frustration, it's important to remain calm and professional throughout the conversation.

Work collaboratively with your property manager to find solutions to any issues that arise. Brainstorm together and introduce strategies to address any challenges they may be facing. Encourage them to take ownership of the situation and work towards resolving conflicts effectively.Conflicts are inevitable in any professional relationship. When conflicts arise between you and your property manager, approach them with a solution-oriented mindset. Listen actively to their perspective and work together to find mutually beneficial resolutions that address the underlying issues.

If necessary, don't hesitate to seek outside help or expertise to address any challenges you may encounter with your property manager. Consult with industry experts or consider hiring a consultant to provide guidance and support in improving your property management processes.

The most common external help sought is from the Property Ombudsman. My advice is that before you approach them, ensure the managing agent's complaints procedure has been followed correctly and the agent has been given adequate time to respond; even if it's not what you wanted to hear/see or read. When instructing your agent always look for their affiliation to associations such as PRS, ARLA or NRLA as this'll show you they have already published their procedures and understand how to respond to complaints accordingly.

Contact their supervisor. If your initial conversation with the property manager is unproductive, you can reach out to their supervisor or manager within the company. Should the issue persist, revisit the lease agreement for any specific procedures outlined for resolving disputes with the property manager. Depending on the severity of the situation, consulting with a tenant advocacy group or legal professional may be necessary.

If things get this bad, then it’s over for the PM. Hopefully anyone reading this won’t have let things go that far. The PM needs to remember they are a professional service, not an owner. The Landlord, aka the “customer”, is always right.

Unless you’re very green, or don’t have softwares in place to “work smarter not harder”, you shouldn’t be getting to this point.

If you've done your part to communicate the performance gap, then it's time to consider a new property management group. Some property management firms are certainly better run than others. Just remember that, like any relationship, it's a two-way street - you are just as responsible for setting them up for success as the management team is responsible for executing.

It’s not your job to ensure your manager is doing their job. Your job is to focus on scaling your investment portfolio. Simply put, if your PM is not doing their job, replace them with someone who will.

Show them the path to success or gracefully cut ties. You hold the keys to your domain. ?? Don't hesitate to switch gears if they're not up to par. Your property, your rules!

This can be a tough call, but putting up with unreliable managers can be very costly for your business in the long run. Termination should not be done impulsively but after careful consideration of the services, compensation and time horizon stipulated in the contract. Collect all deliverables from your previous manager to ensure a turnover with the least amount of hassle. And lastly, always end business respectfully.

One way to ensure there is a way out of your contract is by understanding your contract with the property manager in the first place. When you initially sign make sure you know how to break the contract if certain criteria is not met. If it’s not clearly stated ask for clarity or an addendum that states what can happen in this scenario.

One needs to interrogate the areas of underperformance that can be solved with tech. Property management is still very manual.

Spend more time managing the property than asking the owner if they’d like to sell it! It irks me that when you introduce a property manager to an investor they seem to think it fine sharing their details with their sales team.

We've had this with a couple of agents over the last 10 years of investing. More often than not it is due to management challenges and not the staff member; whether it is because of staff turnover causing pain or letting agent growth resulting in staff being stretched... The way we have managed this in the past is by meeting with management. The property manager is more often than not doing the best they can do, but it's taking time to understand the issue and context as to why and then hopefully the lettings agent can come back with solutions and a timescale to the problems you have, once you've understood their challenges and you have clearly outlined your own.

Use performance reviews as an opportunity to recognize achievements, address concerns, and collaboratively develop action plans for improvement. Ensure that the incentive structure is fair, transparent, and aligned with the overall objectives of property management. Encourage continuous learning and professional development to ensure the property manager stays updated on industry trends and regulations. Regularly review performance against these metrics and hold the property manager accountable for meeting agreed-upon targets.

From my experience with offering accounting and bookkeeping services to our investors property management companies we have three requirements: - reports should have the same start date and end date - no commingling funds from investors one entity to another - reports should be in summary and detail.