Why Property Managers Fire Owners

Today, I want to discuss a topic that's not often talked about: why property managers fire owners.

This is insightful whether you’re in search of a property manager or if you're having issues with your current one. While the narrative usually focuses on owners firing management companies, there's another side: property management companies sometimes need to let go of their clients—the property owners.

So, why does this happen, and how can you, as an owner, avoid being given the boot? Here are five key reasons:

1. Unreasonable Expectations

I’m someone who values high standards. At Emerson, we maintain rigorous standards, but there's a limit to what's achievable. Sometimes owners expect their properties to rent beyond what the market can support, based solely on personal financial needs or past investments. We don’t allow owners to set the rent price because it often leads to unrealistic expectations. The market dictates the price, not individual needs or perceived value.

Owners also sometimes demand excessive property walkthroughs, which isn't feasible without increasing costs dramatically. We aim to provide efficient, necessary management without burdening tenants or wasting resources.

2. Demanding Excessive Quotes

It's common to expect multiple quotes for minor expenses, but asking for assessments on insignificant repairs isn't efficient. Running around for small quotes detracts from the valuable service we provide, and we respect the time of our vendors. Major expenses, of course, receive due diligence in sourcing quotes, but for minor issues, it’s often simplest to choose the best-known vendor.

3. Being Cheap

Investing in properties isn't like investing in stocks. Real estate requires ongoing maintenance, and sometimes owners underestimate this need. Properties need regular attention to earn top dollar, especially in terms of market readiness and appearance. Ignoring this can lead to more significant expenses down the road or even losing the property to a wholesaler due to inability to cover necessary repairs.

4. Ignoring Statements

It’s essential to be informed about your property’s financials. We provide monthly statements indicating what's happening with your investment, but some owners overlook these details and ask questions that are clearly outlined in the reports. Initially, we help owners understand these reports, but there's a difference between needing clarity and choosing not to engage.

5. Treating Managers as Employees

This is my number one pet peeve. Often, owners try to manage managers, dictating every move and decision-making process. Trust in our expertise is crucial. We have extensive experience in managing properties, and we perform these tasks more frequently and efficiently. Attempting to manage the minor details of property management with insufficient experience can lead to inefficiencies and missteps.

As property managers, we have methodologies and systems built from years of experience to protect your investment. If you find you constantly need to tell your manager what to do, it might be time to reconsider your choice in a management company.

My goal here isn't to be confrontational; rather, it's to help owners understand how to align better with their property managers. By setting realistic expectations and supporting the management process, you can maintain a fruitful relationship with your property manager and ensure your investment thrives. If you feel your current setup isn't meeting your needs, it might be time to find a better fit.

Thanks for sticking around, and I hope this helps clarify some unseen aspects of property management. See you next week!