5 Things to Look for When Hiring a Property Management Company

When 2024 IREM President Libby Ekre, CPM, co-founded MEB Management alongside two other remarkable women, they made a couple of key decisions to help ensure success: engaging with the local IREM chapter and becoming CPMs (Certified Property Managers). Earning IREM’s CPM designation allowed Libby and her partners to compete with national firms from the start, says Ekre. Fast forward to today and MEB Management has evolved to create Bryten Real Estate Partners, a business that manages 47,000 apartment homes in three time zones.

Professional property managers can provide maximum value for owners, investors and employers in any asset class, but what are the most important criteria for finding the right one? Ekre provides her expert list:

1. Professional licenses & certifications

Choosing an AMO (Accredited Management Organization) firm ensures you’re hiring a company that maintains ethical conduct, financial stability, and outstanding management. Firms that earn AMO accreditation are also required to have an IREM CPM in an executive management position. CPM (Certified Property Manager) certification is among the most well-recognized marks of real estate management best practices and ethical behavior internationally. Other certifications to look for include the ARM (Accredited Residential Manager) and the ACoM (Accredited Commercial Manager). Hiring a firm that encourages professional certification among its management team helps ensure a positive experience for you.

Ekre recommends that when researching property management firms, inquire if the firm is an AMO or has employees that hold CPM certification who would oversee their sites.  This would help them ensure they are hiring a real estate professional who understands how to create value for their assets.

2. Regional experience

Property owners should start with a manager’s local and regional market experience. A national name and corresponding size don’t necessarily transfer to expertise in a secondary or tertiary market. For assets in smaller cities or towns, a regional property manager with a greater understanding of the market will likely be the better option.

If they do have a regional presence, the larger property managers will be able to offer advantages in pricing and provide a more comprehensive software stack. Owners with large amounts of equity going into a property may also prefer a larger property management firm, Ekre says. Smaller property management companies may not have the staffing, reporting or resources to manage the complex needs of the institutional client.

3. Property type expertise

Review the property management firm’s current portfolio to know where their specific expertise lies. Each firm has its own advantages and areas they specialize in. Select the firm that can help advance your goals based upon their culture, experience and services they offer.

“There are a lot of new developments right now,” Ekre says. “You must have a company that fully understands strategic rent and floor plan optimization and be able to pivot based upon deliveries. Those able to design marketing playbooks and brand camps based upon specific product type for new developments are key.”

4. Company culture

It’s easy for property owners to be blinded by their immediate pain points, (e.g., reducing turnover or improving financials), but they must dig deeper when selecting a property manager. Company culture and commitment to customer service are essential.

“A service-driven leadership is really what you are looking for,” Ekre says. “Property management firms manage multi-million-dollar assets with big budgets, but they’re also managing the people.” This is a people business and how you manage the team has a direct correlation with property performance and results.

5. Market reputation

Fundamental due diligence, including interviewing the company and visiting its properties, is important when choosing a property manager. Ekre also recommends talking with area real estate brokers, who can shed light on the firm’s reputation and track record.

“Every client has different objectives and needs, which are always unique to their properties,” she says. “It’s about finding the experts in the area that can best help you protect value. Given such a critical responsibility, owners must be exhaustive with their process in selecting a property manager.”