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.
Looking forward to the series.
As an REO Listing Agent, I have numerous Investor Clients who need the services of Property Managers - we do not provide this in my office. Really don't want to get involved in the Trust Accounting aspect.
I have bookmarked your blog and will refer a couple of my clients who have AR Blogs to follow you as well...
In particular, I'm looking to figure out how to find the right referral for my business...and what should I negotiate for my fee.
Thanks,
John
I have these questions in my property management proposal The 5 MYTHS PROPERTY MANAGER..... about using a Property Manager 1. "It costs too much money." 2. "I'll loose control of my property."Most property managers will be able to anticipate the potential for many rental property problems....tenants want to buy a house; can't pay their rent on time; need "special handling". Experienced property managers have handled many tenant issues before and can work with owners and tenants to resolve difficulties. 3. "I want to do property repairs or designate repair people familiar with the property."Property managers are often willing to use owner designated or repair personnel familiar with the rental property. In many instances, when repair personnel utilized by the owner are unavailable, the property manager can utilize their own vendors and repair people and ultimately save the owner money. In reality, service personnel would much rather work with a professional property manager familiar with their services rather than deal with individual owners. 4. "I think I can get better tenants." Visit a few tenant "gripe" sites on the web and you will read what tenants really think about non-professional property managers. Rental property owners often manage by the "wish/hope" management theory - they wish their tenant would pay their rent and hope that they don't destroy the property. A professional property manager has the tools at hand to screen and qualify good tenants willing to pay market rent for a well-maintained rental home. Also, a professional manager has the ability to negotiate with the tenant and the owner to create a win-win with no "ego" involved. Rental property owners quickly tire of dealing with abusive or complaining tenants and become non-responsive; OR, they do way too much for their tenant's benefit and their investment becomes a "cash drain" and unprofitable. A professional property manager knows what is required under state and federal laws as well as the controlling written lease agreement. If the tenant's request is unreasonable, an alternative might be suggested. If a tenant's request is reasonable and the owner's property would ultimately benefit, a property manager can point out the benefit of the request. 5. "I would like to "try" management myself, first."Unlike many investments, the ownership of rental property is governed by many laws and regulations. The federal government not only has tax regulations, it also has fair housing, lead based paint and other onerous regulations that apply to rental property. The state may also impose more fair housing regulations as well as landlord-tenant laws and regulations to govern the relationship. Learning all these rules and applying them properly is very time consuming. Keeping current with these various rules and regulations is onerous and not knowing items and procedures are required can be costly in the long run. The 5 MOST IMPORTANT QUESTIONS to ask when interviewing for a PROPERTY MANAGER..... 1. "Do you do property management and general brokerage?" Ask it just this way so you can determine if they really want to sell your property or sell you more property. If they do property management as a way to get or keep real estate clients, they are doing it as a "courtesy" and rarely have the experience, education or dedication to do the job properly. When the going gets rough with your property, chances are they will be too busy to return your calls. "Full time property management companies provide the best vehicle for overseeing your single family, detached residence in your absence. The best ones for residential properties are NOT affiliated with real estate brokerage companies and do not depend on commissions for income." THE ABSENTEE LANDLORD'S SURVIVAL GUIDE (Second Edition * 1997)...Jack Rower 2. "How long have you worked as a Property Manager?".....NOT real estate....property management While property managers may have the same state license requirements as real estate agents who sell property, property management is considered a "specialty" requiring direct and specific knowledge of the field. Additionally, the more experience the manager has, the more expertise you will have at your disposal. 3. "When was the last time you took a property management course?" Unlike the practice of real estate sales, property management is governed by specific rules that can be changed or altered in many ways....state legislature(VRLTA), case law, direct government regulations (Fair Housing/Discrimination) so having a professional manager who keeps abreast of these various law changes is crucial to you as a client. Again, the more knowledge that is available to you in the management of your investment, the less likely you will be unpleasantly surprised during your relationship. 4. "What professional property management affiliations do you have?" Most real estate agents belong to a Realtor organization. Property managers, however, can obtain more expertise and education through such organizations as IREM * Institute of Real Estate Management. The more information and knowledge that a property manager has, the more information and expertise will be available to you in the management of your real estate investment. 5. "Do you own rental/investment property?" While it is easy for a property manager to say "they feel your pain", somehow it is easier to take bad news from someone who has been there....negative cash flow and all. Be suspicious of a property manager who has all their "eggs" in the stock market. Lastly, ask yourself....would you rather pay a little more for an experienced property manager, or pay a lot more to an attorney when your property manager makes a costly mistake in the management of your investment real estate. Gibson Management Group, Ltd. Over 45 years of property management experience, at your service
Jordan: We appreciate your contribution to the group!!
Wallace: GOODNESS.... can you PLEASE make a post of some of this? You'd get the exposure, and we'd get enlightened better!.....
THIS PROPERTY MANAGEMENT GROUP ROCKS!!!!!!!!!
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