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High profit margins and minimal service were once the norm for property management. But these days, managers survive on much thinner margins, while providing more and better-quality services for owners.

The key to surviving in this atmosphere is partnering with the right kind of firm for your organization. “Finding a third-party management company that has the experience, capability, and depth you need so that you can trust them to do the right thing is critical to the success of your investment,” says Douglas E. Mueller, president of Sawyer Property Management Companies.

Dan Haefner, CIO and SVP of asset management for Lane Company, agrees.

“Your third-party manager should be a true operating partner and an extension of your business,” he says. “If it’s the right fit, the management company will guide you through challenging decisions, implement new strategies and integrate technology, all while enhancing your property’s bottom line.”

To compete with higher expectations, third-party providers have had to grow and reach a level of sophistication they may not have had in the past. According to W. Dean Henry, president for Legacy Partners Residential, Inc., knowing the owner side of the business sets a third-party firm apart from the pack.

“Our clients benefit from the wealth of our own due diligence through navigation of the development process,” Henry says. “Because we ‘Think like an Owner’, we understand this business from another angle.”

There are many other factors to consider when choosing one firm over another. At a minimum, the firm should provide superb customer service, which translates into higher occupancy and resident retention, which means lower turnover costs. The best third-party managers take it one step further, according to Alliance COO Jim Krohn.

“A reputable management company will improve customer service to residents and establish a competitive edge for owners,” says Krohn.

Your credibility, as well as the efficiencies you seek in choosing a third-party management company, hinge on the integrity of the firm you choose.

“Check to see if they’re an Accredited Management Organization® by the Institute of Real Estate Management ®,” suggests Kellie Falk-Tillett, co-CEO of Drucker & Falk LLC. “Another sign of a company’s expertise is the number of Certified Property Managers® employed by the firm.”

Other factors to consider include in-depth market knowledge, solid training programs and creative marketing campaigns, says Scott Wilder, senior vice president at Lincoln Property Company.

“Technology and information systems are important aspects to consider as well,” Wilder says. “State-of-the-art technology can maximize employee efficiency, streamline communications and improve overall community operations.”

Adam David Lynd, COO at Lynd Company, notes that a track record of success and transparent, detailed reporting should also be considered. “You want proof of return on your investment,” Lynd says. “You want to see evidence of their ability to control expenses and facilitate solid revenue growth.”

In the end, Steve Donohue, president of Western National Property Management, says to make sure the company has profit-minded employees who are utilizing cutting-edge technologies as a means of maximizing the NOI of the communities they manage. “Choosing the right third-party partner boils down to this: find a company that will treat each property as if it were their own, and you’ll be pleased with the results.”