Finding the right tenants to lease a property is one of the biggest challenges for property owners. This is why many of them assign this task to a property manager instead.
Some property owners are content to allow their property manager to oversee all aspects of renting their properties. However, even when hiring an effective property management company, some landlords prefer to have some say in certain facets of leasing their property.
As a successful property manager, you want tenant turnaround to be as quick and seamless as possible to maximize income for your clients. So, should rental property owners get involved to approve the tenant? First, let's investigate property owner participation in the tenant approval process. We'll also offer a few tips for what property managers can do to make this part of their business run as smoothly as possible.
Depending on the owner and your relationship with that owner, involving them in the tenant selection process can hinder your property management success (and their returns).
As a successful property manager, you are better equipped to manage the tenant selection process and place quality renters because:
However, even with your evident expertise, some property owners still want to be involved in the tenant selection process.
If the property owner is a real estate investor with several properties, they probably aren't sentimental about any of their properties. Instead, they will be content for a property manager to oversee the tenant selection and approval process and apply strategies to simply help them make more money.
However, some real estate investors simply like to maintain some sense of control or are reluctant to trust a property management company to pick good tenants.
On the other hand, you might have a homeowner who has moved to a different state and wants to lease their family home for a few years. They could be sentimental about the place and want more say in the tenant selection process. Some property owners might like to meet prospective tenants in person to get a feel for potential residents and whether they will take good care of their property.
For every day that the property remains vacant, money is lost. With the freedom to select tenants without owner involvement, it can be easier for property managers to reduce vacancy times.
However, if property owners want to be involved in the tenant approval process, put a system in place that can include them without having too much downtime between tenants. Conducting pre-screening tasks before involving the property owner gives them a solid list of quality tenants to choose from.
A property management consultant can help you find the right balance of involving property owners while maintaining an efficient process to avoid lengthy vacancies. For example:
With an effective property management tenant screening process in place, owners can feel involved in placing good tenants while your tenant screening software and procedures ensure quality residents for every tenancy.
In most cases, it is most efficient for the property manager to select tenants. The property owner can save time and dollars by allowing their property manager to oversee the entire process. The more trust your client has in you, the more autonomy they will give in administering their assets. Here are a few tips you can follow to gain your client's trust.
Before your client has signed up with you, let them know you are listening to them. Communicate clearly and be available and open to answering any questions they may have.
Once your new client is onboard, integrate them into your processes efficiently. This will help them feel valued and seen.
Keep your communication channels open and be transparent through all procedures.
No one likes delivering bad news. However, keeping issues from your clients can break the trust relationship. Therefore, when you must inform your client of something unpleasant (for example, extensive and costly repairs to be made), come prepared with a selection of feasible solutions.
Good employees are central to the success of your business. From the start, choose good talent. Keep them engaged and invested in the company's success by training them and keeping them up-to-date with industry trends, the latest property management software, and real estate management best practices.
A property manager consultant with years of experience in the property management industry can help shed light on where you might be falling short on customer service and gaining clients' trust. Optimizing your business helps you experience more property management success while serving owners and tenants well!
As a property manager, finding quality tenants for your owners' rental properties is critical in growing a successful real estate management business. A property management consultant can help you evaluate your systems and put procedures in place to seek out the ideal tenants and keep your clients happy and successful! Reach out to Real-Time Consulting Services to learn more about how we help property management companies grow their businesses.
Use our free Profit Calculator to learn where there might be room for improvement in your property management business.