Investing in multi-family properties can be an extremely rewarding and lucrative strategy.  But be forewarned: property management is much more challenging and crucial when dealing with multiple units.

Before you purchase, plan carefully how you will handle property management for your multi-family investment project.  The property manager – you or a professional –  not only keeps the physical property from falling apart, but also keeps the tenants happy enough to want to stay.

If you are new to multi-unit property management, even with a professional manager helping you it will be easier to learn with a limited number of tenant units such as a duplex (or two) or a small apartment building.

What are some of the most important tasks of good property management for a multi-family investment?

• There must be someone available for maintenance around the clock, every day of the year.  It’s never safe to assume that a week or a weekend can go without someone on call who knows how to solve problems.

• A list of immediate-contact numbers for major disasters and repairs should always be at your fingertips.  Check your resources for integrity, competence, reliability and hours.  Make sure they will answer an emergency call at night, on weekends and holidays.  And that they will travel to your property’s location, even in bad weather.  If you are informed of a leaking water pipe, or the heat goes out in an occupied unit in the dead of winter, you need people who can react quickly.

• Be prompt in responses to tenant calls, whether for an emergency repair or a squabble between renters. Tenants that pay well and want to stay are important to the income and long-term success of the project.  Much depends on their perception of management as effective, prompt and respectful.  As the manager, you should set the tone of mutual respect and expectations that tenants will promptly report any problem conditions and will do their part to maintain and keep up the property.

• Conduct full-property inspections at least twice per year.  Closely monitor the property’s exterior and interior, along with features such as the operating plant, pools and fountains, and the interior of each unit.  You should keep in mind that tenants do not always spot maintenance issues, or report those they know about.  The inspection needs to be knowledgeable enough to spot emerging issues before they are emergencies, from dead smoke detector batteries to a fragile water heater.

• Outline rent collection and eviction processes before you need them.  Once a situation is deteriorating, you may find it is more difficult to work out a solution under pressure.

The experience of managing a multi-tenant property is unique and often not easy, but it can be rewarding.  Even if you hire professional management, you as the owner are still the buck-stop point for your tenant’s satisfaction and your property’s physical health.  Take care of your multi-family investment unit, so that it can take care of you.

Do you manage your property yourself, or hire professional property management?

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