As a wannabe real estate investor, are you hiring a property manager to manage your portfolio or are you planning to take the DIY route? In both cases, we at White Sands Property Solutions strongly recommend that you follow a set of definitive rules that you and your agency can follow in different situations to make the otherwise daunting task of property management less chaotic.
These rules can be collectively called a Standard Operating Procedure (SOP). The SOP acts as a guide when you need to determine how you should act in a particular situation. When managing a property, you will have to face unique situations almost daily. For example, what you need to do if a particular tenant is always late on rent. What steps should you take to resolve the issue? If you plan ahead and think of all the possible situations that can rear their ugly head in the future, it would be far easier for you to resolve them with minimum efforts because you have a standard procedure to follow.
When hiring a property management agency, you need to check whether it has an SOP in place. If not, try to avoid hiring such an agency or provide them with an SOP document prepared by you.
Let’s discuss in brief some advantages of having an SOP and which areas it can cover:
It helps you avoid disputes and resolve them when they arise
You can give out your SOP document to your tenants at the start of a new management or when a new tenant moves into a property you are managing. This SOP document will explain what your clients or tenants can expect from you in particular circumstances.
For example, an SOP document can outline the protocol you follow to ensure that all tenants pay rent on time and the steps you will take if a tenant doesn’t pay. The SOP document can also explain how you deal with maintenance issues or handle complaints related to repairs from tenants. It can also explain what factors you take into consideration when you increase rent or how you advertise the property.
This document will help you resolve disputes. For example, if you have explained in the SOP how you deal with a complaint, your tenants will know how they need to convey their grievances to you and how long it may take you to process and resolve a particular type of complaint.
It acts as a guide for your staff
If you have hired individuals to look after particular areas of property management like maintenance and accountancy, not only you, but the members of your staff also will know how they should act in a particular circumstance. They won’t run to you for advice whenever they have a situation to deal. It will also increase efficiency, besides it will also make them accountable if they fail to follow the procedure.
You can consult with an expert on what common situations a landlord may likely face when managing a property and prepare an SOP document accordingly.