Finding the Right Property Manager for Your Investment Property

Posted by on Jul 5, 2016 in Blog - Commercial Investment Properties | 0 comments

Finding the Right Property Manager for Your Investment Property

Real estate investing–be it commercial, residential or industrial–can be a great, stable income base. Rental properties can serve as a singular source of income, or they can provide investors with a comfortable  supplementary revenue. However, properties that are mismanaged can quickly depreciate a property’s earning potential. Those new to real estate investing may be unfamiliar with regular management and maintenance required for a property and investors with several properties in their portfolio may be unable to devote time and attention to all their assets. Property managers and management firms can provide investors with assurance that their investments are in good care… they can also cause investors unnecessary stress  if they are ineffective or neglectful.

Finding the right property manager for your investment property can be difficult if you don’t know how to screen your applicants. These tips may be helpful for real estate investors looking for property managers.

  • Licensed Property Managers – Property managers or firms holding a license must follow state-regulated procedures for the management of real estate property.
  • Research Property Manager’s Portfolio – Investors should visit prospective property managers’ other properties to see physical evidence of the way their other properties are managed.
  • Management Fees – Though there is no standard management fee, investors should gauge the market area for an average management fee before accepting a property manager’s stated fees.
  • Property Inspections – Make sure your property manager is on-site inspecting your property and/or units on a regularly scheduled basis along with tenant turnovers.
  • Evictions – Finding out a prospective PM’s eviction rate can help determine if they are the right match. High eviction rates may mean poor tenant screening procedures.
  • Repairs and Maintenance – How does your PM handle maintenance and repairs? Do they contact you before initiating repairs? Is there a predetermined fee in place for maintenance?
  • Accounting – Make sure to establish clear time-frames and procedures with your property manager for regular accounting needs. Make sure receipts are provide for services and repairs.
  • Contracts – Be sure to review all details of the contract before hiring a new property manager. Make sure any issues are clear before signing.
  • Termination Clause – The final fail-safe that investors can put in place is a written termination clause included in the contract. If any problems should arise in the future, make sure you are protected.

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