When the market is right for buyers, investors will take the opportunity to snap up properties to make significant returns. In an ideal situation, an investor would purchase a property and manage it himself. However, for those who purchase multiple properties or properties located far away, a property manager is the only way to go. When choosing a property management firm, it's necessary to do your homework and follow a few practical tips.
If you used a real estate agent to purchase the property, ask them if they can refer you to a property management firm. If you know other investors, you can ask them who they use to manage their investment properties. Once you have a few names, you should check your state's Real Estate Commission to ensure the prospective property manager is licensed. You can also check with the Better Business Bureau to ensure there are no complaints against the individual.
You will want to interview each prospective property manager. Note your first impression. Is the individual dressed professionally? Did he or she arrive to the interview on time? Does the individual speak and act in a professional manner? You should have a good overall first impression that will allow you to determine if this is the person for the job. Your investments are a big deal and you want property management services conducted by a professional.
You've got a lot of money invested. Therefore, you want to ensure you're getting the best property manager to handle those investments. Asking the following questions will help you make the right choice:
•Where are vacant homes advertised?
•What kind of signs are used to advertise vacant homes?
•How many vacancies does he or she currently have?
•How long, on average, does it take to rent a property?
Such questions are important because you need to know how the property manager is going to market your home, and ultimately place a tenant in the property. You're only getting a return on your investment when the property is rented so you need to make sure the property manager is going to work in your favor and keep a tenant in the property.
When you're presented with an agreement between you and the property management firm, keep in mind that the terms are negotiable. Look for the following information in the agreement:
•Determine the fees charged by the property management firm. Fees that are too high or too low may indicate the property manager is inexperienced or too good to be true.
•Determine who your main contact will be. Ensure the contract allows for various modes of communication, including phone and email.
•Determine how much notice is required by the property manager to terminate the agreement. A 30 to 60-day notice is appropriate and will give you enough time to find a replacement.
You should also pay attention to how maintenance and repairs are handled and how rent checks are deposited to your account. Know the property management firm's eviction process.
A prospective property manager should possess certain qualities that should immediately stand out. This blog post explains what to look for when hiring a property manager. By following these tips and looking for qualities every property manager should have, you will be successful in your search.
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