27 Aug 09 Property Management Help: Finding A Property Management Company
If you are tired of self-managing your property and have decided to hire the services of a professional property management company then you need to be careful and take your time finding a good company to hire.
Hire the right management company and you will have a lucrative rental. Hire the wrong management company and you will lose thousands of dollars.
One of the biggest mistakes owners make is that they just pick a property management company out of the phone book without first doing research on the company.
Don’t hire one of those big nationwide corporations that sell property. They do property management because they want to be the first company you think of when you want to sell your property. They lose money on property management, but make money when you are ready to sell your home. It’s never a good idea to go with a property management company that is trying to get you to sell your home because that’s where they make the big money. You want a company that specializes only in property management and nothing else. You don’t want a big corporation either. You want a small, local expert that has lived in your city for at least 20 years. You want a property management company that specializes in your local market only.
Check references, particularly the management companys other clients. Make a few phone calls to check references. Do not sign any agreement with the property management company until you know they have a good track record. Now here’s where owners blow it. They contact a property management company on their high up pedastool and they demand to see a list of all the property management’s clients so they can call them for a reference. Don’t do that. Humble yourself. Your home will only make about $50 a month for the property management company. If you are a pain, they will simply tell you to take your business elsewhere. The property management company will not release a list of “all” their clients. Not to you. Not to anyone. That is confidential and internal information. Think about it. Anyone could get a list of clients and then contact those clients and offer a slightly lower management fee and take all their business away. You would be hard pressed to find any business that would be willing to give you a list of “all” their clients. Just chill out. Ask for three references that you can call. Call the references and ask if they work for the property management company or know someone who does. Ask the references how long they have had their properties managed by this company, and just go from there.
Go online and check the company out. Do they have all the necessary licenses to do business in your area? Are they in good standing with the DRE? Most states require a property manager to also have a real estate license if they are dealing with single family homes.
Check the company’s insurance. If they are not insured, stay away from them. The company should have general liability insurance, professional liability insurance, and workers’ compensation. Remember, the management company will be collecting deposits and rent so they should have a bond on their employees to protect you in case of employee fraud.
Another big mistake owners make is that they do not ask the right questions when hiring a property management company.
Consider asking the following questions:
1 – Can you show me a list of what management services you provide?
2 – Do you have a home sales division?
3 – Can you tell me exactly what the monthly operating reports you send me will contain and when I will receive a monthly income check?
4 – How will you market my property?
5 – How quickly do you, and what is your procedure for, handling maintenance requests from renters?
6 – Who will actually manage my property? What are her qualifications? Is she licensed? How many properties does she currently manage?
7 – Can I have three references? Specifically, can I have the contact information for three clients of yours with rental properties that are managed by the same person who will be managing my property and that is similar in type, size, and location to mine?
8 – Do you have a maintenance division? If so, do you only charge the actual cost of labor and materials without any markups?
9 – Are you able to get discounts with vendors and if so, do you pass on those savings to me?
10 – Who gets the late charges? If you keep all the late charges, will you come down on my monthly management fee? If I get to keep the late charges, are you charging me a higher monthly management fee on my property?
11 – Do you have insurance on employee errors and theft? Specifically do you have an Errors and Omissions policy that covers at least $500,000? On your general liability policy does it cover at least $2,000,000?
12 – Do you have a $500,000 Fidelity bond and a Forgery and Alterations policy of at least $25,000 for all employees?
13 – Do you co-mingle different owners’ funds into one account? Did you know this is illegal in most states because of pyramid type schemes that property management companies have run in the past? Do you agree that keeping your owners money separate is important? If you deposit all owners’ money into a single bank account, do you keep owners’ money separate on paper so that Joe isn’t paying Sally’s expenses?
Tags: business, business and finance, education, home, House & Home, investments, Property Management, real estate, rentals
23 Aug 09 What is Property Preservation and How Can It Help?
With the economy the way that it is and jobs becoming harder to not only get, but keep, eviction rates are on the rise. Property owners are in need of assistance in preserving and in some cases even reclaiming their property. Property Preservation is a specialty dedicated to maintaining and if necessary even assisting you in reclaiming your properties. In the event that damage has been done to your property, then a property preservation company can, in most cases, restore your property for you to your specifications. When you can not be there yourself, having qualified professionals available to protect your assets can save you thousands of dollars in possible damages in the long run.
When you have a professional property preservation company, some of the services include an inspection of the property to be done and any issues to be noted. All areas will be inspected to have careful documentation of all carpets, floors, walls, doors and trim, and appliances within the property, heat sources and plumbing. A property preservation company may also want to take careful notice of the outside of your property. Any landscaping, pool or recreational equipment that you may have included with your property. All of these items should be meticulously documented prior to allowing anyone to take possession of your property.
Should a property owners worst nightmare happen and an eviction becomes necessary, a qualified property preservation company will offer those who need them eviction support services along with additional services like lock changing as well. A property preservation company can also handle any clean out or debris removal you may need and assist you in securing your property. The kind of assistance that a property preservation company can provide can be crucial in minimizing the damage to your property.
Dealing with damages to the property or surrounding property can also be a heavy undertaking. If lightning decides to strike that beautiful oak in the back of the property, and part of that beautiful old oak falls and damages the fencing surrounding the property, its the landlords responsibility to take care of it. If a water pipe bursts underneath the property, guess who gets to foot the bill? What if the kids, the dog and the cat are having a play day inside and a hole mysteriously appears in the wall at the end of the hallway? Your phone will be ringing early the next morning for sure. These are just a few of the many damages that could occur on your perfect property at any given time.
Since property preservation involves more than just cleaning and maintaining like inspection, eviction, damage estimate, it is always advisable to seek the help of a qualified and professional property preservation company. The property preservation company will take care of debris removal, property cleaning, electrical, plumbing and heating repair, carpet removal or cleaning, property and pool securing, lock change, defective paint and graffiti removal, drywall repair, termite and pest control, hazard removal and initial lawn cut. An experienced property preservation firm would have the right personnel to handle the complexity of the job and deliver a high quality property that could double its sale value.
Tags: diy, do it yourself, Family, home and garden, home improvement, home repair, Property Management, Property Preservation, real estate
