10 Reasons to Run from a Property Manager:

Making the decision to enlist the help of a property manager can benefit you both personally and professionally.  Your time will be freed up to focus on other investments, or on your main career, in addition to improving the value of your property and increasing your cash flow.  Buy hiring a bad property manager can cost you thousands, and even lose your investment altogether.  Here are 10 red flags to be in the lookout for:

1. Unwilling to Provide References.  References are a key to determining how a property manager will perform.  If they don't provide references or testimonials there could well be a problem.    Don't let them distract you from this portion of the process.  If they become uncomfortable or are hesitant to provide names, you should seriously reconsider hiring this person.
2. Poor Experience.  You may encounter an excellent property manager who has glowing references and a proven record of success, but has only been in the business 1 or 2 years.  You may also speak with a potential property manager who has been working in the rental business for most of his/her career.  If they don't have proven methods of securing rental payments, performing routine maintenance, or complying with regulations, you will have problems.  Just because they've been doing it for years doesn't mean they know what they are doing. 
3. Inattentive.  Pay attention to how the potential property manager treats you during your meeting.  Were they genuinely interested in your property?  Did they learn your specific needs?  If they interrupted you frequently and glossed over the details about what you were looking for n a property manager, they are most likely not going to give your property the attention it needs. 
4. Excessive Cost Structure.  Get bids from more than one property manager or management company and compare rates.  Find out what specific services will be included to account for higher costs.  Remember, you get what you pay for.  We had a saying in the construction industry: Speed, Quality, Price. Pick two.
5. Conflict Resolutions.  Ask the property manager to go over the proven methods he/she has used to settle problems and issues when they arise. 
6. General Conduct.  Is the potential property manager polite, respectful, and self confident during your interview?  These three attributes are imperative for managing you tenants and your future dealings.  If they are discourteous in the interview it's not going to get better and there is a good chance they will drive potential tenants away. 
7. Inflexible Schedule.  If the property manager sees the position as a 9-5 M-F job there is a serious problem.  Property Management is a time consuming job that does not take breaks for weekends, evenings, or holidays.  If a perspective tenant can only see the property on Sunday night at 8 pm the property manager should be accommodating.  If a tenant's ceiling is leaking at 2 am on a Saturday night, he/she is going to have to be available to deal with the problem or you are going to be the one driving to the residence at 2 am. 
8. Read the Fine Print.  The Exclusive Right to Lease is a standard form provided by the Colorado Real Estate Commission, but look for areas that have been added by the broker.  Look for a cancellation clause and / or a non-performance clause.  If you hire them and they don't do what they say they will do you should be able to cancel the contact with no financial loss.
9. High Pressure Sales.  If the candidate is pressuring you to make a decision immediately they may have something to hide.  No decision ever has to be made in less than 24 hours.
10. Licensing.  Colorado requires that is a property manager is handling other people's properties they must be a licensed real estate broker.  Be sure to ask for their license number.  If they are licensed you know they are abreast of the current laws and rules dealing with property management.  You can also contact the Real Estate Commission to file a formal complaint.