Property managers can be an asset for a property investor. They can also be a detriment if they are not chosen wisely. Use this complete guide to learn everything you need to make an informed decision.
Before you can decide if hiring a property manager is right for you, you must first understand what a property manager is. Responsibilities will vary depending on the individual manager and how much you are willing to pay. Did you know that a property manager can be responsible for evicting tenants and can even help you file your taxes? You may never have to worry about fixing a leaky faucet again because maintenance requests are also a service a property manager can perform. Learn the full range of services a property manager can provide.
Now that you know what a property manager is, you now have to determine if you actually need to hire one. Hiring a third party manager is not the right decision for every property owner. There are certain things you should take into account to help you make your decision. Here are nine things to consider before hiring a property manager.
Unfortunately, not all property managers are good at what they do. Some lack proper education and some simply lack drive. Even good property managers may only be good at managing certain types of properties. For example, a property manager who has great reviews for managing apartment buildings may not be the best fit for your single family home because your home could be a low priority for that manager. This is why you must do your research. Here are some tips to follow to make sure you find the best fit for your investment.
When interviewing a prospective property manager, you must ask the right questions if you want the right answers. Learn what questions you should ask about their education and their experience. Learn what questions to ask about their knowledge of local, state and federal law, and about their practices for filling vacancies and retaining tenants.
In addition to the questions in Part I, asking the prospective property manager questions about the services they provide and the fees they charge will help you get a clearer picture of their capabilities. You must ask these questions to get a full picture. You will also want to ask questions about how money is handled, where funds are held and when payment will be rendered.
Understanding the management agreement is essential to hiring the right property manager. Signing a management agreement without truly understanding the terms is a recipe for disaster. Regardless of what the manager has told you verbally, the written contract is what you will be bound by. Here are six things to look for in the contract and how they can protect you.
Even if you have done your research before hiring a property manager, sometimes things don't work out as planned. When you realize the manager you hired is not the right fit for your property, you must end the relationship as quickly and seamlessly as possible. Learn the dos and don'ts of terminating a property management contract.