Choosing the right person to take care of your home will be at the top of your priority list when you are looking for a property manager. You will want someone who is reliable, honest and trustworthy. Picking a friend to act as your property manager may seem like the obvious solution. However, if you choose a friend to do the job, there are certain disadvantages you need to be aware of.
Is Your Friend Actually Qualified?
Just because your friend has flipped three houses and knows all there is to know about the housing market does not make them an expert; nor does it mean that they are actually qualified to work as a property manager. If you are serious about hiring your friend, ask to see their credentials and to find out if the certificates are current. Will they require additional training or are they qualified to manage your property right away?
Hiring an unqualified friend to act as your property manager can have serious repercussions, so be very careful in your choice. Do not base your decision on sentiment, but on sound reasoning and careful examination.
Friendships Can Suffer
Many property owners are quick to choose a friend to care for their property, as they feel that a friend would always promote their interests. However, this is not always the case. What action will you take if your friend is slow to issue an eviction notice or fails to follow up when a tenant is habitually late in paying the rent? It is easy to push such thoughts to the back of your mind, reasoning that this will never happen to you. But it can happen!
While friendships can survive, and even flourish during such a business arrangement, some can suffer. If you hire a friend to work for you as property manager, everything needs to be crystal clear and carefully outlined in your agreement right from day one. Do not leave anything to chance. It is important that you understand and agree to the terms of your agreement and have a signed copy so that you can refer to it whenever necessary.
If you are serious about hiring a friend to act as your property manager, it is important to take your time in finding the right person for the job and to weigh all your options. Do not just assume that this is your only option. Hiring a friend can actually be the wrong decision, especially if they are not qualified to carry out the work. Moreover, friendships can suffer if something goes wrong.
More from this contributor:
Coping Financially as a Landlord when a Tenant is Late with the Rent
How to Work with Your Property Manager when Listing Your Home For Rent
What to Look for in a Property Manager