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[F238]Find A Property Manager

by Paul T. Robertson, Pau

The problem with property managers is that many of them are not professionals. While it's true they may have some management experience under their belt, it may not be for the type of property that you have; or they may not take the job seriously; or they may palm it off onto someone else to care for, which happens often when they have many properties to manage. So how can you be sure to get a property manager that is right for you?

You can begin by looking out for these 7 problems that are common among property managers.

1. NO COMMUNICATION: You should ask for references from each person that you are considering as a property manager and then check with the references on their communication skills. A property manager who doesn't contact you at the end beginning of any rental period or at least a few times throughout the year, will probably end up costing you more time and money than if you managed the property on your own.

2. LACK OF ACCOUNTABILITY: Does the property manager have a good reputation that needs to be kept that way? Is he or she bonded? Is he or she a licensed real estate professional? If the person you select as your property manager has nothing to lose, they really have no incentive to manager your property well.

3. OVER PROMISING: When you are interviewing, does one of the potential manager seem to be overly eager for the job? So much so that they seem to be making more promises that the others? Be careful here, this is not a good thing.

4. TREATING YOU LIKE A NUMBER: Property management companies that don't guarantee you a specific property manager, who you meet yourself, are likely to treat your property as just another number. You want a single property manager or small company with a small management load to ensure your property is given proper attention.

5. NO EXPERTISE OR EXPERIENCE: To avoid problems you want a property manager that specialises in the type of property you have. You don't want a person who's used to dealing with office complexes trying to rent out your mountain get-away. They also need to have a good track record for managing their own properties as well as others.

6. NO RESPECT FOR YOUR CLIENT, TENANTS OR YOU: This actually goes along with being treated like a number, with some slight differences. How do the prospective property managers make you feel? Do you feel positive about them? Do they give you the respect that you deserve? If not then they may not be a good choice, because they will treat your clients and tenants the same way. You can test this be seeing how attentive they are to you. Do they allow you to ask questions and then answer each with equal importance or do they tell you what they want you to hear and not give you a chance to ask anything?

7. COMPLACENCY WITH TENANTS AND YOUR PROPERTY'S MAINTENANCE: You really want a property manager that will be not just active, but proactive, when renting your property and caring for it. Ask about their vacancy percentage and their turnover rate. Both numbers should be very low.

When interviewing property managers, you should make sure to screen them on each of these issues. You need a manager that is proactive, professional and experienced and one who will treat you as a partner by keeping in touch with you and treating your property as if it were their own. If you do this, then you will find an excellent property manager that will not only save you stress and time but increase your rental income and turn your property into an asset instead of a liability that it could become with the wrong manager.

Buying a piece of income property, whether it is for residential or commercial use is a great investment. What better of a way to gain a valuable source of residual income than investing in income produceing real estate? No matter what type of property you purchase, if you intend for it to be used for real estate purposes or for commercial purposes somebody has got to manage things, both in regards to establishing contact with tenants and serving as a midpoint between the tenants and the owner.

In addition, somebody has got to be there to manage the property from a financial perspective, collecting and following up on invoices and paying bills, among other things. Who should the check be made out to, and who should the tenant contact if they should have an issue to discuss? Just because you purchased the property does not make you a counselor or consultant, and it definitely does not imply that you have any customer service skills.

This is what a property manager for. They can cover just about all of these things and more, but just like the saying goes 'nothing in life is free.' Property managers do charge for their services and you don't always get what you pay for (or thought you were paying for) in any case. To give you the best tool possible to avoid getting into an issue with a property manager that you are unable to handle, here are some of the most common mistakes that people in your position make, spelled out in plain English so that you know to avoid them.

• Over Paying

Paying too much is the top mistake that first time property manager hirers are guilty of making. Property managers do a lot for your company, and it is important to pay them but nobody said you had to make them rich. Ten percent of the monthly rent paid is a great place to start as far as recurring payments, as well as a set percentage of the first month's rent of a new lease or a small percentage of the amount of the total leasing amount over the entire span of their time is also okay.

• Hiring a Bozo

Okay, of course nobody is going to necessarily hire Bozo the clown, but if you are going to spend the money to hire a property manager make sure you hire someone who is qualified and knows what they are doing. Of course not every property manager is going to be degreed, but having the right experience in lieu of a degree is an essential qualifier. It may in some cases be okay to give a newbie a chance, but make sure that you are able to spend the time or hire somebody to spend the time to properly train them.

• Hiring One-Sided Property Managers

Many owners find it easier to hire companies or individuals who will do the leasing side of things but not the managing side of things as far as tenancy goes. It is easy to hire someone to do this because it is usually for a substantially less fee than those who do both but don't be tempted. Those managers who do not have to deal with tenants will be a lot less scrupulous when it comes to selecting them. After al, who cares what somebody is like as long as you don't have to live around them?

• Hiring a Manager You Would Detest

If you meet your potential new property manager and you feel like you wouldn't care to deal with them, consider the fact that you might not want to hire them. If you have ever lived near or rented from a property manager that you hated you will understand why, but treat your potential renters as you would yourself. This is also bad for business, so if you want good clientele make sure that you only arm yourself with the best people to deal with them.

• Using Standard Contracts

Make sure that when you hire your property manager, your contract reflects the times. This also goes for your leases. If you buy the pack of contracts or leases from Staples where you simply fill in the blanks, you are leaving yourself open for a lot of holes. Have your contracts done specifically for your situation.

• Signing a Long Lease/Contract

The worst thing you can do is sign a super-long contract with a property manager or managing company; that is, unless you have worked with them for years. If a company provides good service and is consistent and worth the money that will keep you in the game, not some silly contract that can be forfeited or fought in the case of poor management. This is why it is important to have better than a standard contract.

Hiring a property manager can be a real headache and if you are a first timer, that is more than an understatement. That is why it is important to make sure that you do well when you are hiring you property manager, so that you don't have to deal with it again any time soon.

You want to make sure that you get the best deal that you possibly can, but you want to make sure that your property manager will do a good job for you as well, and you do not have to spend a fortune on them to do so no matter what type of property you need managed. Property managers are supposed to help increase your revenue, not draining it by charging outlandish costs and fees.

Article Source : Pg. 260

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Both Paul T. Robertson & Tony Seruga, Yolanda Seruga And Yolanda Bishop are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Paul T. Robertson has sinced written about articles on various topics from Finances, Property Investment and Finances. Author: Paul T. Robertson recommends choosing an experienced . See the "InHouseP. Paul T. Robertson's top article generates over 1900 views. to your Favourites.

Tony Seruga, Yolanda Seruga And Yolanda Bishop has sinced written about articles on various topics from BMW, Real Estate and Real Estate. . Tony Seruga, Yolanda Seruga And Yolanda Bishop's top article generates over 1000000 views. to your Favourites.