Signs It May Be Time to Change Property Management Companies

Are you feeling like your property management company isn’t delivering on all those promises they made when you first hired them? 

One of the reasons we started our own company at Streamline Property Management is that we’re obsessed with quality. We don’t want to rent out homes that we wouldn’t live in ourselves. And, we don’t want to see owners lose money because of vacancy, unqualified tenants, and deferred maintenance – all things that can be avoided with the right management partner

Don’t settle for mediocre property management or disappointing investment results. Here are some serious signs that it may be time to change property management companies. 

Quick List of Reasons:
– Lack of communication
– Poor response to maintenance needs
– Unqualified tenants, or lack of tenant retention
– Confusing accounting reports

Is Communication Difficult with Your Property Manager?

Effective communication between property owners and their property managers is non-negotiable. You need a good relationship to enjoy a successful rental operation, and good relationships begin with transparent, honest, and open communication. When this vital connection breaks down, the consequences can be both disruptive and detrimental to your relationship and your earnings.

One of the most significant risks of poor communication is a delay in addressing tenant issues. If a property manager isn’t clearly communicating problems like maintenance needs, repairs, or tenant complaints, these issues can escalate, potentially damaging the property or causing tenant dissatisfaction. This, in turn, can lead to vacancies, late rent payments, or even legal disputes, all of which can hurt your bottom line.

Lack of communication can also create confusion around expectations. Without clear, regular check-ins between owners and managers, there may be misalignments in areas like property marketing, rent collection policies, and maintenance standards. For example, a manager might assume certain tasks are prioritized, while the owner may have different expectations, leading to missed opportunities or unnecessary expenses.

When there isn’t clear, consistent communication, there’s no way of knowing where you stand and what your property needs. And if your property manager isn’t doing a great job of communicating well with you, they’re likely not communicating well with your residents, either. That’s a much bigger problem.

Property Maintenance and Management

There are a number of things that can go wrong with maintenance at your rental property, and if your property manager is the cause of any chaos or confusion around maintenance, that’s a huge sign to work with someone else. 

  • Lack of maintenance response. A non-responsive property manager to maintenance issues can lead to deteriorating property conditions, tenant dissatisfaction, and costly repairs. Delays in addressing problems can also result in safety hazards, legal liabilities, and ultimately, higher vacancy rates.
  • Working with unqualified vendors. Is the work being done, but not well? Using unqualified or unlicensed workers for repairs can lead to subpar workmanship, safety hazards, and potential legal issues. It may also void insurance or warranty coverage, leaving the property owner liable for costly mistakes or accidents.
  • Neglecting preventative services. If your property manager isn’t taking care of annual HVAC checks, air filter replacements, pest control, or landscaping, this negligence can result in costly emergencies, property damage, and tenant dissatisfaction. Regular maintenance helps catch issues early, preventing bigger problems down the line. Failure to prioritize this increases repair expenses and risks tenant turnover.

You don’t want to let terrible maintenance deteriorate your property, and you don’t want a lack of responsiveness to chase good tenants out the door. 

Problems with Tenants 

When you find that rent is late or eviction becomes necessary, there’s definitely a problem with the tenant, but you also need some accountability from the property managers who placed that tenant. Are they not screening well enough? Are they not communicating or enforcing rent collection policies? 

Another problem many owners encounter is frequent turnover. If a tenant is in a hurry to move out of a rental home, there has to be a reason why, especially in a market where rents are only going up and a high-quality home in a desirable area is not always easy to find. Vacancies are expensive for property owners. Turning a property over and finding another tenant requires time and resources. Retention is a big part of any good property management plan.

Talk to your existing manager about your concerns when tenants are not performing well, violating the lease agreement, causing conflict, or unwilling to renew their lease. If that property manager does not have a strategy to solve these problems, it’s a sign to begin looking elsewhere.

Accounting Reports and Financial Statements

At Streamline Property Management, we have a dedicated bookkeeper who specializes in property management accounting. We have software and accounting platforms that can provide owner portals so our owners always know what’s coming in and what’s being spent on their property. 

You need this kind of transparency and oversight. You need your finances to be streamlined and accurate. Otherwise, you don’t really know what you’re spending and you don’t really know what you’re earning. It’s hard to make decisions about the future when you don’t have reliable information.

While we’re on the topic of finances, does your property manager have a plan for increasing your rents and your profitability? This should be part of any strategy session you have when talking about your investment goals and your plans for the property they’re managing. How can you make your investment more profitable? When your management partner is not consistently bringing you new opportunities, whether it’s a suggested upgrade or an idea about ancillary services that tenants would pay for, you’re potentially losing money in the long term.

These are just a handful of signs that it might be time to change property management companies. You know how your management partner makes you feel; if there’s excitement about your property and what’s happening there, keep the manager you have. If there’s anxiety and concern, you can probably do better. Find a management partner who can meet your needs and exceed your expectations. 

We might be that partner. Contact us at Streamline Property Management if you have any questions about how we can help you have a better rental experience. We serve all of the South Bay and Monterey County, including San Jose, Santa Cruz, Monterey, Carmel, Santa Clara, Los Gatos, and the surrounding areas.

Signs It May Be Time to Change Property Management Companies

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