My experience with property managers shows that there aregenerally three types. Those types are the good, the bad, and the ugly! Some do an credible job of providing a valuable service for both the property owner and the tenants. But, I have found that some can do more harm than good for a property owner who is paying a considerable sum for their services.

Here are six lies to be aware of when you are screening to hire a property manager:

1)    Claims that they can lease the property for more than anyone else.No, they haven’t cornered the market. Anyone saying this is extremely misleading at best. At worst they do get the higher rent but force a very unqualified tenant into the property who either never pays, does damage…or both! You have options for leasing that include professional leasing agents in constant touch with high-end markets, or you can even do it yourself.

2)    Telling you your returns will be higher with them than anyone else because they can maximize rentals and minimize cost.No one has a lock on top tenant dollar and lowest cost maintenance and repairs. Such a claim should raise your flags.

3)    Guarantees of occupancy or, stated another way, no vacancies.They may tell you that they are plugged into high-demand market segments and can quickly locate new tenants, but will the property manager contract to pay you the missing rental should a vacancy occur for reasons beyond anyone’s control? In any case, you don’t want the management company rushing in an unqualified tenant to avoid a vacancy.

4)    Assurances that you will never have an eviction.This maysoundlike a welcome protection from one of the most unpleasant rental experiences, but once again, there are too many future unknowns for this to be a valid promise. A tenant who loses their job but refuses to move once they fall behind or a tenant who looked good on the application and turns out to be “The Addams Family” once in the residence can happen to any property.

5)    Did a prospective property manager assure you that they will take care of your property as if it is their own?Know that some managers are frankly unconcerned about second-rate conditions. Some are over-booked with properties and can’t keep up.

6)    Assuring you they will personally collect the rent from the tenant every month and do a physical inspection of the property. How can you know if they were truly in the residence before the end-of-lease move-out reveals that the tenants’ Great Dane has removed the carpet and their children have used the walls for “art”?

Beware of glib promises that property owners would like to believebut are unrealistic and impractical.Other than being a real estate broker there are no requirements to hang out a property management shingle. Anyone with a real estate license may do it. Be diligent in separating the quality professionals from the others!

In your opinion, has your property manager lived up to their promises?

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