When Should Your Property Manager Ask For Your Approval
Updated: Jul 17
So you are about to hand over your valuable assets to a property manager. You want to gain profits from your investments without a mountain of work, but you want to ensure your properties remain safe. We're here to help you by letting you know when your property manager should ask for your approval.
Expensive Repairs or Renovations
You can leave your property manager to handle mundane, everyday repairs like a leaking faucet or a warped floor tile. According to these Chicago property managers, you want to be in the loop regarding expensive repairs that can cost a hefty amount.
We recommend keeping a close eye on the accounts for large renovations since this is usually where any embezzlement can occur.
Preemptive maintenance is when a property manager fixes something before it becomes a problem and saves you money in the long run. You may have heard the saying, a stitch in time saves nine. Well, it's the same concept. However, your property manager shouldn't be free to spend money on every idea they get. They should run it by you and convince you of its importance in the long run.
Conducting an Open House
It would help if you left the property manager to review tenant applications and handle the marketing for your property. However, you should be aware of any open house event on your property. A regular visit to show a tenant around is fine, but an event with many people needs your approval.
You might want to be involved in the open house and meet possible tenants. The event could require staging the property or providing refreshments which are large expenses.
If your property has faced any significant damage, you should be the first party informed. You must be on top of what happened and who's to blame. Tenants or staff may have to be removed from the property. Your property manager shouldn't manage your insurance claims under your nose either. Ensure the property manager knows what he must do in case of damages in your contract.
We're sure any property manager would want to sweep any mistakes while choosing tenants under the rug. Since it is their job to vet tenants, it reflects poorly on them if any criminal activity occurs on your property.
However, a responsible property manager will report this and take responsibility for their mistakes. You might be afraid the property manager may keep this information from you to save their job. To avoid that, you can give the local police department your contact information, so they let you know if anything happens. That way, you bypass the manager altogether.
The property manager should inform you of sudden evictions, so you're not surprised when you see the property management reports. They should also provide a reason for removing a tenant when there is no one to fill the empty unit. If prospective clients are on a waitlist, they should contact them as soon as possible. A vacant unit means lost money.
If you have dedicated staff for your properties, you must know if they are being replaced. Some may have worked for you for years, and you don't want to see them gone without your knowledge. Your property manager must never hire additional staff or increase overheads without your approval.
Community Event and Activities
The property manager is responsible for maintaining a nice community environment. This is especially true for properties that house several tenants. They may organize community events or activities such as a block party or a communal vegetable garden.
However, you should know if the expense comes from your pocket. Remember you should never be surprised by any expenses. At the same time, if you spent a fortune on grass, you don't want to dig it up for a vegetable garden so soon. These activities are crucial for tenant loyalty, but you should be happy with them first.
To wrap up, property managers should never spend over a certain amount without letting you know. The more your property expenses, the less your profit. It's simple math.
Any decisions that require money or physically alter the property must go through you. There's no way around it. They can text you and wait for your approval if you are busy. Some things you'll approve right away. Others might require a more detailed phone call. Your property manager will rarely have to bother you for this in person. You can trust your property manager but not with your eyes closed.