In this episode of Get Real Wealthy Season 4, Quentin D’Souza discusses how to effectively manage your property manager.
Quentin suggests that before purchasing a property, you should consult a local property manager in the area to determine if they are willing to manage it. This conversation can offer valuable insights into the various factors that may influence a property manager’s decision to manage—or not manage—a specific property. Quentin emphasizes that when working with a property manager, it is vital to obtain copies of all lease agreements and addenda given to tenants, as well as any other documents completed by the property management company, such as the property management agreement.
He further states that it is essential to review these agreements for a better understanding of how the property manager will charge fees. This encompasses determining whether they will charge a flat fee per month, based on gross rents or a per-door fee, tenant placement fees, and if there are any additional charges. It is crucial to discuss these fees with the property manager, especially if they are not outlined in the agreement. Moreover, it is important to inquire about the management fee for repairs and maintenance, as well as how the HST will be charged and when it will be applied.
Quentin also highlights the importance of closely monitoring vacant units, particularly if they have been unoccupied for more than 30 days. Managing these vacancies thoroughly and maintaining regular communication with the management company is essential to make necessary adjustments to the units. If the property is not filling quickly enough, renovations, such as interior updates or a fresh coat of paint on the exterior, may be required. Quentin advises comparing the quality of your unit to other units in the area to ensure it meets or exceeds local standards.
Additionally, Quentin says that getting to know your neighbors and establishing communication with them can be beneficial. This provides an extra set of eyes on your property and potentially valuable feedback, whether solicited or unsolicited. Keeping a few people in the area informed about your property could offer valuable insights. Regular communication with your property manager, facilitated by quarterly or bi-annual phone calls, is essential to maintaining open lines of communication. This practice is particularly important if an issue arises that needs to be addressed and you were not previously aware of it.
Lastly, Quentin recommends reviewing all monthly bills and statements from the property management company and utilities to ensure there are no unexpected increases. If any changes occur, the property management company should provide an explanation. As the property owner, you remain ultimately responsible for your property, and hiring a property manager does not absolve you of that responsibility.
In conclusion, Quentin suggests that if you’re interested in learning more about managing your property manager, check out the full course on filling vacancies and property management at educationrei.ca. You can also find his books on Amazon, which cover the topic of property management. Furthermore, you can join Durhamrei.ca and become a member to gain access to all of the video courses.
Important Links and Resources
Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Action Taker's Real Estate Investing Planner, The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords, The Filling Vacancies Toolbox: A Step-By-Step Guide for Ontario Real Estate Investors and Landlords for Renting Out Residential Real Estate, and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate.