How to Choose a Property Manager
Hiring a property manager is a huge decision that needs some research. On top of the variety of factors that should be considered, there are a lot of property managers you can pick from as well. Through some handy pointers, it should be easier to make that choice.
Asking for Referrals
There is no doubt in the world that word of mouth is still the best way to find a good property manager. Ask real estate agents and other local property owners for a list of property managers they have hired before or are still working with now. Make sure to ask what it is about the company that they like or not. Referrals are biased at times, but if the same things are said about a property manager by different sources, then they must be true. Online reviews are also helpful as long as you read them from independent and reputable consumer watchdog websites, where reviews are more likely to be credible and authentic.
Checking Their Present Work
Check out some of your prospect’s running rental ads. Are they professional and effective? Do they invest in various advertising channels or are they limited to free ones such as Craigslist or community bulletin boards? Can they show you a sample report that you should receive on a monthly basis? And as good property management also means happy tenants, you should go out of your way to talk to the tenants too.
Interviewing Several Companies
It’s good to interview different property management companies before deciding to hire one, if only to find out who will actually be the best for you. Do they hear you out with your questions and give satisfying answers, or are they dismissive? If you’re not impressed during the interview, that’s not a good sign.
Licensing and Certification
In most states, property managers need a real estate broker’s license or a property management license. Verify with your state’s Real Estate Commission to know whether your prospect’s brokerage license is active. Also inquire if they are certified with a trade organization like the Institute of Real Estate Management (IREM) and the National Apartment Association (NAA). Certification may not be everything, but it sure shows how committed a company is to the industry.
Scrutinizing the Management Agreement
Lastly, make sure the property manager’s responsibilities as well as your responsibilities are clearly expressed in the management agreement. Needless to say, the contract must be totally consistent with all the terms discussed in previous meetings. Pay attention to every single detail, especially on compliance with fair housing laws, extra charges, services provided, hold harmless clause and the cancellation clause.
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