When to Fire Your Property Manager

There are three basic ways a property manager can be fired.

The first way is when the property itself does not perform well, especially if the property performs worse than the investor anticipated. A change may be necessary to improve the property operations.

The second way to get fired is if the property does not improve its operations year to year or the operations remain the same. No improvement? Well, that is not why we bought the property, is it? Fire ’em!

The third way to get fired is if the property really outperforms the investor‘s expectations. The reason for the firing is that management looks easy and a property manager is not needed when a property is doing so well. The investor can do the job and save the fee.

What this amusing story communicates is all too true: that property managers are at the mercy of the property owners. And as a property owner you may feel pretty powerful. But don’t abuse this power. Choose wisely in the first place, treat each other with respect, and stick with your property management partner. They in turn will reward you with a high level of service and the returns you are looking for. Turning your property into a revolving door of property managers is not only inefficient, it will undermine your success. Look for the long-term relationship that builds momentum and profits.

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