Your rental property is an asset that requires proactive and professional management to protect it properly. You wouldn’t let your neighbor’s friend manage your stock portfolio (unless, if she’s an actual portfolio manager). Moreover, your property requires a licensed, experienced investment property manager who is responsive and transparent.
Choosing the right investment property manager can be an overwhelming task, especially if you’re a first-time landlord. What qualifications should you be looking for? How do you sort the subpar investment property managers from the ones who will protect your investment as if it were their own?
Here are the top 5 tips in choosing a property manager:
1. What are their Credentials?
Property management is a complicated industry. You want a property manager who is up to date with present federal, state, and local laws. You will want someone who has a good track record of effectively handling the shifting that comes with tenants.
Look for a property manager with ample experience in maneuvering property investments.
2. Check for professional licenses and certifications
Experienced property managers should be able to support their expertise with appropriate licenses and certificates. Check with the state’s real estate commission to see if your property manager’s real estate broker’s license is up to date. Professional affiliations and certifications are an advantage.
3. Inspect review and references
It goes without saying, that before you take time to meet with a property management company, read through their Social Media Accounts. Consider that some reviewers (say, an evicted tenant) may have a motive that has no significance on the quality of the property managers’ work. However, review sites can be a great first-line resource when comparing multiple companies.
References are a helpful way to assess whether you’re going to have a good relationship with your property manager.
4. Review the property management agreement
The property management agreement indicates the business relationship between you and the property manager and sets forth the management’s tasks and responsibilities.
Given the gravity of the contract, it’s necessary for you to read it carefully and make any necessary amendments before signing. Ensure that the agreement covers everything you need and that there are no disagreeable clauses. It is important to know the following: Services provided, rental fees, owner responsibilities, contract duration, and termination.
5. Ensure that they have the appropriate insurance
Your property management agreement also mandates that you have sufficient insurance, which is beneficial protection for you, too. Ask your property manager more about necessary insurance protection.
Thoroughly evaluating potential property managers is important. Whether you decide to hire us or choose your own, we hope the information outlined in this article will help you feel confident with your decision, knowing your investment is in good hands.
I like your advice about checking the credentials of the property manager when looking for one to hire. That way, you can ensure they have a good track record. Lisa, my friend, plans on having a condo building constructed soon. She plans to hire a property manager for the building, so I’ll show this article to her.