Selecting a good property manager is very important as a landlord or investor. If you are not able to do it yourself, consider how to select a good one for your investment.
I used to own a property management company and still share space with the one i sold. It is completely a different thing then being a traditional agent. You must be an expert in systems, book keeping, state laws affecting landlords and tenants and much more.
I am addressing this from both an agent and investor perspective so a little of both in here :-)
Look for these things when selecting a property manager:
1) Several references of clients they have had for a few months and then ones they have had for a few years - the ones recently could tell you what the "transition" experience was like. The ones that have been there a long time can tell you why, but sometimes they stay because they are not sure how to find another one. So check them out completely.
2) How many units do they manage? A small number might make you think they can focus on yours better, but if they grow can they handle the volume in an organized way?
3) How long have they been in business?
4) Does the owner also invest? Do they understand what is involved?
5) Do they do anything else besides management? i would want them focused on just property management. Also, as an agent when i refer someone to them to manage their home, I want to know that property manager is going to get them back to me to list or sell the home later. I don't want the property manager to do that and lose their focus and me my listing.
6) What is their selection process for which unit gets filled or advertised next? How do they advertise and where?
7) What is their tenant approval process? do you have any say in the final selection as the owner
8) What is the eviction process for your state and do they follow it completely? Meaning do they start to evict as quickly as they can for non-payment. If they charge a "late fee", who gets that? The company or the property owner or is it split?
9) What is their process for doing repairs and any maintenance that would affect the property owner? This one can be deadly to the owner...without a very honest and detailed manager the owner can get really stuck on these items. I like to know what their limit to spend is without the owner approval.
10) When do you as the owner get your check? How is it paid? What does the statement look like that you will be receiving each month? What do they provide at the end of the year?
If you are thinking to open a property management company there are a few things to consider (besides the above)
1) Get involved in your local real estate investor association - they do education and training for landlords. Also, you find more clients.
2) Get focused on just property management, so you are the best.
3) You won't make much money until you are over 100 units - which means "employees or a team".
I hope this helps.
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