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Choosing a Property Management Company? Avoid the Vultures. Part 2!

By
Services for Real Estate Pros with Classic Property Management

   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.

 

New Tampa Property Management
Rent New Tampa, Inc. - Tampa, FL
Wow! I never heard of charging owners for rent due, instead of rent collected.
Feb 17, 2008 01:33 PM
Jon Mitchell
Classic Property Management - Santa Clarita, CA
Hey Rob!  You wouldn't believe some of the stories that we here from owners who have switched to us...
Feb 17, 2008 02:13 PM
New Tampa Property Management
Rent New Tampa, Inc. - Tampa, FL
This is a strange market... many of the ones seeking property management are not the investor type that property managers have dealt with in the past. In some cases, "flippers" and homeowners getting transferred can be quite arrogant and probably deserve to get stuck paying for rent due instead of rent collected. Of course, some of the property management companies that have been doing this for a long time have not adequately moved into the 21st century either. Needless to say, now is certainly a good time for a property management company to differentiate themselves in a way the new breed of customer can appreciate.
Feb 18, 2008 02:48 AM
Renee Espinoza
ProSource Realty and Property Management LLC - Phoenix, AZ

I agree. I beleive we have to always adhere to the needs of the market and the customers.

I also have never heard of collecting on rent due. As an investor myself i would feel offended if I got charged even when tenants dont pay rent.

http://www.myazrental.com -ProSource Realty and Property Management LLC

Aug 18, 2009 06:44 PM