Hiring a property manager can prove to be challenging. Property managers should be personable with tenants but they also must have robust processes and systems in place. This is not only to maintain profitability but to reduce the workload of the condo board.

Here are five steps to consider when hiring a property manager.

1. Evaluate
When hiring a property manager, evaluate the person’s strengths and weaknesses. Consider the following four criteria: systems and technology; turnover; maintenance; and reporting/communication.

2. Research
Research the basic offerings of about a dozen local property management companies. Get an assistant to compile the information in a spreadsheet for review for the hiring committee. The information will, in essence, help shortlist two or three candidates that are qualified for an interview.

3. Interview
Set up face-to-face interviews in each property manager’s office. This will give the interviewer a chance to see the managers’ work environments and meet their staff. Be sure to prepare a set of questions for the actual interview process.

4. Managing the manager
Once a property manager is hired, the board shouldn’t just walk away and hope the new manager does a good job in running things. The board must manage the property manager without micromanaging.

Make sure the commitments agreed to during the interview stage are followed out by the property manager. This will allow the board to make decisions based on accurate and current financial statements.

The board should also be notified by the property manager of any potential maintenance or resident issues. This will mitigate risk and liability for the condo board.

It’s also important that the property manager schedule a yearly walk-through of the building. The board should receive a detailed inspection report.

5. The board’s responsibilities
The board must follow specific duties to ensure an amicable and long-term relationship with its property manager. These include being:

• Organized. If there is a job that needs to be done, give clear instructions and set a deadline or due date. Knowing when and how things need to be done will help the property manager.
• Informed. Keep informed of the state of the property and on top maintenance issues. Many problems (and unnecessary costs) can be avoided by being informed.
• Professional. Everybody makes mistakes. There are no perfect property managers. Putting off discussions or verbally attacking a property manager won’t make a problem go away. It will only affect the condo’s bottom line and make more work for board members. When issues come up, discuss solutions; it’s the most profitable way to do business.

Christine Ruptash is a real estate investor, consultant and best-selling author. She can be reached at 780.832.6099.