There is a world of difference between owning a multifamily property and operating one. In most cases, multifamily investors don’t purchase properties with the intention of becoming landlords, and that is where property management companies come in. Property management companies are third-party entities that can be contracted to handle the daily operations of a property, or portfolio of properties.

Multifamily investors ultimately seek to make worthwhile returns from the assets they hold. That said, successful assets in the multifamily sector are quite often those that have high tenant satisfaction and a low vacancy rate. Hiring the right property management company is one of the most impactful ways an investor can work towards those goals.

Of course, in order to hire the right property management company, investors first need to know what to look for. With the reputation of an asset at stake, placing the management of its daily operations into the wrong hands can be a costly mistake. With that in mind, we’ve compiled a list of the four most essential traits that investors should look for when looking to hire a property management company.

The 4 Essential Qualities that a Property Management Company Should Have

Attention to Detail

Operating a multifamily property is no easy feat. The job often involves vetting and eventually assisting a variety of different tenants, a vast assortment of complex legal and maintenance processes, lengthy contractual agreements, and so much more depending on the property. Property managers and their teams must be able to maintain the asset, and ensure that the property can both attract and maintain tenants.

This may seem simple enough, but there is often plenty going on behind the scenes of some multifamily assets, typically increasing in magnitude the more units a property has.

With so many different things that require urgent attention occurring on any given week, it takes near inconceivable efficiency to see that everything remains in order while keeping all of the tenants not just simply satisfied, but legitimately pleased. A good property management team leaves no tenant concern unaddressed and takes great care with all matters pertaining to the operation and upkeep of the property.

Excellent Communication

When managing a property that serves as a home to an assortment of different tenants, some with families, having good communication skills is crucial. It is the job of a property manager to effectively communicate with tenants for a variety of different reasons. Tenants should always be kept notified of what’s going on at the property, particularly any major safety or maintenance inspections, repairs, or modification work.

Communicating any possible disturbances to a tenant’s way of life or enjoyment of their unit in a timely manner — that is, giving ample time for a tenant to prepare themselves — is more than a simple common courtesy. Tenants are less apt to get upset regarding even the most intrusive of processes when given notification well in advance. Honest and timely communication can sometimes be just enough reason for a tenant to renew their lease.

Strict Enforcement of Rules

Almost every property, at some point or another, becomes the home of a troublesome tenant or two. These tenants find it hard to obey the rules or can be an annoyance or source of discomfort to other tenants. While keeping a great reputation with the tenants in a market is of great importance, it is almost equally important to command strict adherence to the rules and regulations of a property in order to mitigate liability risk and to ensure that all tenants get to enjoy their homes.

Making sure that tenants and staff alike follow all rules and regulations is vital to the daily operation of a multifamily property. Tenant discomforts aside, multifamily properties are often subject to strict laws and detailed inspections — and failure to comply with or meet certain standards can become quite costly.

Personality

Though this quality is often easily overlooked in favor of some of the others, choosing a property management company that plays a larger role in the lives of tenants can do wonders for their satisfaction. Multifamily properties may lack the fabled white picket fence, but they should still feel like home to the tenants that choose to live there. A well-maintained property is one thing, but a memorable staff that feels like family makes a property feel less like a lease and more like a home to a tenant.

Ideally, a property management staff must consider the delicacy of working where people live. Staff should treat each and every tenant with respect, and there should be no exceptions when it comes to manners and politeness.

There are always tenants who can not be impressed, but the vast majority greatly appreciate it when the management team exhibits top-of-the-line service. The companies that aren’t afraid to go above and beyond, planning events and getting involved with their communities are the ones that tend to attract and retain long-term tenants.