Your Guide to Property Management
Are you looking for an easy Property Management guide to help you understand what questions you should be asking a prospective Professional Property Manager? Well first, let’s review some of the reasons why you may be considering this in the first place. Perhaps you’re a homeowner who is moving out of state, but you plan to return to your current home at some point in the future. Maybe you’ve been called overseas for a tour of duty and want to ensure your home is well taken care of while you are gone. Or possibly you’re planning to upgrade and purchase a new property but keep your current one as an investment. Or you might be an investor who simply needs help managing your portfolio.
Whatever your reason may be for possibly engaging a Professional Property Manager, this is clearly an important decision and there is a lot to think about! Property managers can be a terrific asset or a real detriment if you don’t choose one wisely. Use our quick hit list to help you consider everything you need to do to make an informed decision about hiring a Professional Property Manager. You can also check out our other detailed guides such as “Why Hire a Property Manager” and “How to Find the Best Property Manager for You.”
What does a Property Manager do?
- Locates qualified tenants.
- Negotiates leases.
- Resolves tenant complaints.
- Handles tenant violations.
- Maintains the property.
- Ensures that the property and the lease both comply with the law.
- Manages expenses and collects rent.
- Does the required IRS income reporting.
- Performs regular property inspections.
- Does everything you will have to do if you try to manage the home yourself!
When to Hire a Property Manager
- You own multiple properties and are unable to manager all of them yourself.
- You live far away from your rental property.
- You don’t have any experience managing a rental property.
- You can afford the monthly management fee (typically 8%).
- You don’t have enough time to manage the property by yourself.
- You are willing to delegate this task to a professional.
How to Find the Right Property Manager
- Ask friends and colleagues for referrals.
- Research property managers online.
- Check licenses and certifications.
- Look for experience and stability of staff.
- Ask lots of questions!
Top 10 Questions to Ask a Property Manager
- How much experience do you have managing properties?
- How quickly can you rent my property?
- How do you establish rental prices?
- How will you market/advertise my property?
- How do you screen tenants?
- What are your leasing and management fees?
- How often do you do property inspections?
- How do you handle tenant delinquency? Late payments?
- What are my landlord responsibilities?
- Can I cancel my contract with you if I’m unsatisfied?
What to Look for in a Property Management Contract
Services and Fees
You must understand what services the property manager has agreed to perform and how much they will charge for these services.
Your Responsibilities as Property Owner
The contract should clearly define what your obligations are as a landlord.
Equal Opportunity Housing
The contract should state that the Property Manager follows both the federal, state and local fair housing laws.
Pay close attention to what limits have been placed on the property manager’s liability.
Make sure the management agreement has a clear termination or cancellation clause.
If you are ready to rent your home, feel free to take advantage of our exclusive FREE Rental Market Analysis. Finally, don’t forget to connect with us on social media! Follow us on Facebook, Twitter, LinkedIn, Instagram, and Pinterest for tips, ideas and updates.