Choosing a Property Manager to entrust with your properties can be a daunting task. Here are some key factors and questions that will help you decide on a firm to handle your investment portfolio.
1. Texas law requires a licensed Broker to oversee the activities of a property management company. You can visit the Texas Real Estate Commission to verify licenses for the Manager, and leasing staff, and Broker within an organization.
2. Ask questions about the Landlord Tenant Laws that affect housing in your state.
3. Ask questions about the Texas Rental Code affecting housing.
4. Ask for referrals from friends, family or your local Real Estate Agent.
5. Check online reviews and check with local and state Apartment Associations.
6. Ask to review a management contract and fee schedule. Always look for hidden fees.
7. Inspect properties currently managed by the company you are interviewing. How is the curb appeal, how are the properties maintained, if vacant look for online marketing ads to see how well the home is being shown.
8. How many employees vs. how many properties. How many employees are licensed in the State of Texas.
There are some instances where a license is not needed, but the duties of an Unlicensed assistant are very limited. You can find this information on the Texas Real Estate Commission Website.
9. Ask for a list of references and contact them with questions. These are just a few that I would ask.
How long have they used the property management company? Are owner reports and funds distributed in a timely manner? What type of vendors do they use for maintenance and is there a surcharge on the invoices? What happens if I decide to sell while under management contract?
10. A property management contract should include the following:
- The property management services to be provided and fee schedule.
- The responsibilities of the property manager.
- An Equal Housing Opportunity section that supports both state and federal fair housing laws.
- A clause for the Property Manager's liability in the case of neglect.
- The duration of the contract.
- A clause for terminating or canceling the property management agreement.
For More information on How to Choose a Property Management Company, I would love to answer any questions you may have. Give McKamie Real Estate Services a call 254-435-3065. Serving Bosque, Bell, Hill, and McLennan Counties.