A property manager is someone who can manage and maintain your rental property, but your decision to farm this important task out to a third party is a big one. A good manager can make all the difference in making a profit and being overwhelmed by the process managing your property. There are a few simple steps to take to insure that you choose a good one.
Instructions
1. The first step is to figure out what you want the management company or manager to do. For example, do you want them to collect the rent, find tenants, repairs, handle disputes and evictions and perform maintenance? If you don't know what exactly what you want, you can ask the manager for suggestions. However, it is important to know what you want before you sign a contract.
2. Do research on the prospective manager. The first place to start is their website, if they have one. Next, ask other landlords. Attend a local landlord association meeting and ask for recommendations and reviews of local property managers. Odds are that someone at that meeting may be willing to take on your property.
3. Interview the prospective manager. Come up with a set of questions to determine if he is the right person for your job. Some examples are: will they do everything that you require; how much experience do they have; what are their fees; what is included in their fee; how familiar are they with landlord tenant laws; what kind of accounting do they use; and do they have insurance.
4. Know how much it is going to cost. The fees associated with property management are usually determined by a combination of property location, the number of properties and the services required of the manager. The two most common fee systems are a flat rate or a percentage of the rent received. In addition, any repairs or materials will be added to the fee. It is important to be clear of the base cost and the cost of any additional services in advance as to avoid unexpected issues later on.
5. Finally, make it official. Sign a contract with the property manager that outlines the fees to be charged and duties to be performed. The document should also include the length of time that the property manager will be employed with a date for renewal and contingencies for a break in the contract.
