Owning rental properties has always been a good investment. It is a good source of steady income. Owning rentals present individuals with opportunities to increase personal portfolios through holdings in real estate.
If you are an owner of more than one rental home, maintaining and taking care of the apartments can be challenging. You may find the necessity of hiring a property manager to release you the management burden. This will give you ample time to enjoy the returns of your investment.
Below are 8 tips that you must follow in order to find a competent person to manage your properties;
- 1. Hire a property manager that is licensed. Licensed means looking out for a person that has done a property management course that is approved. He/she must have passed an exam on state licensing.
- 2. Look at a sample of properties that are currently under management by your candidate- ask for a few addresses of the homes or apartments currently under management by the person you intend to hire. Go and have a look at them. Are those properties in good condition? Would you be comfortable living there personally? If the answer is no then such a person is not qualified.
- 3. Is the fee charged by the management reasonable? There is no management fee that is standard. Depending on the market area, the management fee ranges between 8 to 10% of the amount charged from the monthly rent.
- 4. Will your property get inspected on regular basis? Ensure regular inside checks for your property i.e. at least once every year. The outside should be checked d at least four times every year. However if you have a high turnover of tenants, then your property manager is expected to check your property every time your tenants shift
- 5. Ask the property manager to be how often they file eviction notices on the properties they currently manage- if the eviction turnover is very high this means that they do not do thorough screening to their prospective tenants.
- 6. How do they handle their repair and maintenance issues? Some companies in property management will use the rental incomes to carry out repairs and other maintenance costs. Others will bill you the amount of repair charges on the following month rental income. Ensure that you have limits on the expenses that can be spent on your own behalf. But again there are emergencies that may require immediate action. Here he/she can do the repairs but he/she must notify you first.
- 7. Be precise on the procedure and time-frame for the accounting funds spent both monthly and yearly- if for example the tenants pay their rents in June, do you get the amounts in the same month or are there delays? If there are delays then the property manager must notify you. Make sure that you get receipts on all repairs not just generalized statements. You must know what amount was spent where and how.
- 8. Review management contact details-if the property manager must keep pet deposits and late fees, he/she must notify you in good time.
NB- You must have an agreement that is written and has a termination clause. In-case you are not satisfied with the person managing your property; there must be a method that is pre-defined for terminating the contract.