In my previous article I wrote about the change that has been taking place in the Antelope Valley. Basically, 
I went over how some unscrupulous characters (vultures) have begun to pop up. These folks are taking advantage of homeowners who are looking for a good property management company. I won't rehash the details here, but feel free to read about it on my blog by clicking here.
Anyway, as promised, I am going to start writing about a few of the characteristics that you should be on the lookout for when choosing your property management company.
#1. Ask the management company if they are paid based on "Rent Due" or "Rent Collected".
What I mean is this. Property management companies are generally paid a certain percentage of the rent that the tenant pays each month. Now for the sneaky part. The vultures out there (bad property managers) will tell you that they earn their percentage based on "rent due". Essentially, that means that these guys expect to be paid their percentage each month whether the tenant is paying or not!
On the other hand, the good companies out there will expect to be paid their percentage based on "rent collected". In other words, if the tenant decides to stop paying, we don't get paid either. I say "we" there because this is the method that Classic Property Management uses. Obviously, this means that we make it a priority to get the rent from the tenants each month. Otherwise, our paycheck takes a hit (and nobody likes that)!
What does that mean for you? You get paid too! Most rental home owners here in the Antelope Valley do not own their homes free and clear. There are mortgages to be paid, taxes due, homeowner's insurance policies, etc. Obviously if you are counting on your rent check each month to make or supplement any of these payments, then it needs to be a priority for your management company as well. Beware!!! If you can't count on your management company to collect your rent money, then the next carcass we see a vulture feeding on...could be you!
For more information on how to save yourself from the vultures, or for other solutions to today's rental market, please check out our website by clicking on the logo to the left! Classic is here to help.
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