property manager: Dissecting Property Management Contracts Pt. 3 - Indemnification and Boiler Plate Items - 02/19/10 02:03 PM
Make sure to read my introduction to this series on management contracts
In continuation from our last article, here are more items to pay attention to in the property management contracts you review:
Liability and Indemnification All contracts will have a section that addresses what the management company can and cannot be held liable for.
Some contracts are broader and more comprehensive than others in terms of what the firm requires the owner to indemnify them from.
Indemnify: To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by … (3 comments)
|
property manager: Examining the Organization - Size, Staff, Customer Service - 02/16/10 02:14 PM
Make sure you also read Examining the Organization - Background, Qualifications, Portfolio.
The service you receive will only be as good as the people doing the work. This step is critical in ensuring you hire honest, knowledgeable professionals who will be attentive to your needs and the needs of your tenants.
Here's a list of issues to review and questions to ask the property management firms you interview:
Size How many people do they have on staff? There are pros and cons on to both large and small size companies. While these are certainly not universal, here are some to consider:
Larger … (2 comments)
|
property manager: Interviewing a Property Manager - Background, Qualifications, Portfolio - 02/12/10 01:01 PM
The service you receive will only be as good as the people doing the work. This step is critical in ensuring you hire honest, knowledgeable professionals who will be attentive to your needs and the needs of your tenants.
Here's a list of issues to review and questions to ask the property management firms you interview:
Background How long has the company been in operation? Under this name or under a different name? The rule of thumb is to look for five years or more experience, but this must be weighed against all the other criteria as there are subpar veterans and excellent … (7 comments)
|
property manager: Does Your Property Manager REALLY Screen Tenants? - 12/10/09 04:14 PM
No landlord ever wants to land a bad tenant, but regretfully all screening processes were not created equally. Applicants put their best foot forward and the more they have to hide, the greater lengths they will go to hide facts that would eliminate them from consideration.
The screening process can vary widely between property managers so its important to find out just how much protection the company is going to provide you from what later turn out to be bad tenants. It only takes one eviction to drive home just how important this aspect of the management companies duties really … (4 comments)
|
property manager: Tenant Marketing and Retention - 12/09/09 04:46 PM
Attracting the right tenants and keeping them is what property management is all about. This is one of the most valuable services that a firm can provide, so it’s important to make sure you will be getting your money’s worth by examining their process for each task.
Here's a list of issues to review and questions to ask the property management firms you interview:
Where do they advertise their rental listings? The more exposure the better, unless the management company is billing you to advertise in places and ways that are not effective. Expect your listings to be on several paid … (5 comments)
|
property manager: Handling Tenant and Owner Funds - 12/04/09 03:27 PM
Owners entrust their property manager with more than just their physical assets. Property managers handle rental income, reserve funds, security deposits, and write checks on the owner’s behalf. To function properly, this relationship requires trust, transparency and accountability.
Here's a list of issues to review and questions to ask the property management firms you interview:
Payment to owner What day of the month do they mail checks to owners? Will the check be for that month, or will the management company hold back a month? It’s better to have your rental revenue is in your bank account collecting interest as soon … (6 comments)
|
property manager: Property Management Fees - Part II - 12/02/09 10:24 AM
Make sure you read Property Management Fees - Part I first.
Here are the rest of the property management fees that you need to be aware of and look out for:
Advertising fee There are plenty of ways to generate leads using free resources like signs, craigslist, etc. but with vacancies time is money and prolonging the search process to save a few advertising dollars is a bad idea. This fee could be charged in addition to the leasing fee so it’s important to ask who pays and what the typical fees are. The better they are at marketing the … (3 comments)
|
property manager: Property Management Fees - Part I - 12/01/09 03:13 PM
While management fees are important they must be viewed in light of what other firms are charging, the scope of services provided and the quality of those services. The company you hire will be stewarding one of your biggest assets and the last thing you want to do is make your decision based solely (or even primarily) on who charges the lowest fees.
A lower price may reflect either an acknowledgment they don’t provide top tier service, or an attempt to gain business by undercutting the competition. The problem with the latter is that it leads to slim margins for the … (8 comments)
|
property manager: What Are The Benefits of Using a Property Management Company? - 11/23/09 03:56 PM
A competent property manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold. Here are a few ways that a good property manager earns their keep:
Higher Quality Tenants Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. A thorough … (4 comments)
|
property manager: What Do Property Managers Do? - 11/23/09 03:23 PM
The following is a list of the tasks property managers commonly perform for owners. You may only need some of these services, and the property management firms you interview may offer more or less than what is listed here.
Evaluate the property and determine an accurate rental rate
Perform detailed documentation of the interior and exterior including photos Offer recommendations on repairs and cosmetic improvements that maximize monthly rent while providing good ROI. Gather data on rental rates in the area and work with owners to determine the optimal rental rate. Rent research will … (9 comments)
|
property manager: Should You Hire a Property Manager? - 11/23/09 03:17 PM
While every investors situation is different, there are certain scenarios and factors that typically pre-dispose owners one way or the other. The following questions are designed to help you determine if you should consider hiring a property manager.
1. How far do you live from your rental property and how frequently can you visit the property on a regular basis? If you are close you may be able to make the regular visits required for maintenance, inspections, collections, etc., otherwise the further you live the higher your travel time and expenses will be. The larger the distance the more temptation there … (12 comments)
|
property manager: Hiring a Property Manager - 11/23/09 03:16 PM
Note: This guide primarily addresses single and multi-family management companies.
A good property management firm can easily become one of your greatest assets, second only to the properties that they steward on your behalf.
As Robert C. Kyle states in his book Property Management:
A property manager’s role is far more complex than simply showing space, signing leases, and collecting rents. In reality, the property manager attempts to generate the greatest possible net income for the owners of an investment property over the economic life of that property. Thus, the property manager has three goals:
Achieve the objectives of the property owners. … (8 comments)
|
property manager: New series of posts - 10/25/09 01:43 AM
I have written a property management hiring guide designed to assist property owners in evaluating prospective property management companies. It covers everything from property management fees to what to look for in the contract. I will be posting it as a series of articles here over the coming weeks becuase I would like to get some feed back on its contents from the professionals here at Active Rain.
Please don't hold back. Any and all critiques are welcome.
… (6 comments)
|
;)
;)
;)
