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Nov 2006 - With the tremendous amount of turnover in the property-management industry, the urge to move quickly through the process of hiring a replacement can prove quite tempting. Don’t give in!
If the wrong manager is hired to oversee a property, problems with increased crime, timely rent collection and maintenance could sink an investment. In short, be diligent in a search.
Ernest Oriente, founder of the business recruiting service PowerHour, says it only takes three-to-six months to lose substantial value at a large rental property. “People really matter in the property-management business,” Oriente says. “If you have the wrong person in the position, you could have a $5 million to $10 million investment that will rapidly decline.”
So what should rental property owners do?
The most important thing is to use in-depth assessment tools, not superficial first-meeting feelings for someone you have some things in common with, Oriente says. Among the assessment tools he recommends are probing interview questions posed uniformly to all applicants and a sales test to determine just how much experience or talent the applicant has in selling the rental housing product to wouldbe residents.
“Assessment tools allow us to know more about a candidate—they peel the skin back,” Oriente says.
Oriente says another helpful tool is use of a written essay during the interview, asking what the applicant would do over 30 days, 60 days, etc.
“I want to know if you can think on your feet. I want to know if you can do it without someone coaching you at home on the answer,” he says. “You would not believe how many people fail on this small step.”
Another PowerHour technique in hiring is recruiting close to home, meaning using present, quality employees as a recruiting source. A cash incentive or “special award” for a trusted employee to use good judgment and bring another top-notch manager or rental property staffer into the fold can go a long way in piece of mind for landlords/property owners.
Finally, be critical of answers on applications or information on resumes, especially any gaps in employment. Finding the red flags about a person—incorrect Information —a surefire signal that this applicant is not your man or woman.
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