Hi John,
Picking quality tenants has to be the #1 priority.
7% to 10% commission really is a low priority.
Responding to maintenance issues is obviously important. However, the response must be in the form of physical action to make the repair either immediately or within 48 hours depending on the nature of the problem. A verbal response to placate the tenant doesn`t cut it at all.
With the small duplex that I own in Brantford I am now on my second property manager. I have also dealt with a property manager in Hamilton with less than stellar results earlier in my investing career. I have found that once I have chosen quality tenants and handed the property over to a manager there are very few problems until its time for a tenant to move. Once a tenant gives notice there are some immediate action items to be taken care of:
1) Get the notice in writing on the proper provincially sanctioned form.
2) Inspect the unit as soon as possible and make a list of things that need to be done.
3) Notify the owner of the list of repairs / suggested improvements.
4) Make sure the tenant understands their responsibilities on move-out for damages, cleanliness etc.
5) If the unit shows well, start advertising and showing the unit (you kow they`re moving out so why not get it rented for a few days after they move out??)
6) Have an action plan, line up the workers and cleaning crews for the day they move out.
7) Be present during the move-out process and go through a final inspection of the property with the tenant that has moved out.
Having a plan of action is really what I`m talking about. Deal with the "what if" scenarios before they actually happen. Having a tenant give notice and move out is just one example.
Anyway, having regular inspections is something I do with my property managers at least twice a year.
Responding to the needs of the tenants in a timely fashion and recognizing that they are the customer not the pain in the *%$& that lives there (although they can sometimes be that).
Again, picking quality tenants has to be my #1 priority. Treating them with respect, showing them your clearly outlined policies and procedures, having a welcome basket for their move-in, bringing a box of donuts with you on an inspection for them to enjoy, encouraging timely payment of rent with gift baskets at Christmas time, and the list goes on.
Hope this helps.
Sean Flatt
[email protected]
