Real estate property management is an essential component of maintaining a property
and its value in the market, not to mention attracting tenants. Owners and landlords
who are busy, own several properties, or who are out-of-town can certainly benefit
from enlisting the help of a property manager, and save money in the long run, to
take care of property issues and repair damages before they get out of control.
Finding a reliable management company that can efficiently handle the running and
maintenance of your property is essential, not only for peace of mind, but also
to ensure the maximum market value. A property manager takes care of all the details
so you can focus on growing your investments.
What to Look for in a Property Manager
It takes all sorts to make up this industry profession, so it’s important to do
your research before hiring a property manager. Consider how professional the person/company
is. Do they appear honest and trustworthy? How will they handle situations when
tenants don’t pay? Do they truly seem concerned and willing to take care of the
property and look after it?
When communicating with a property management company, be sure to note the quality
of their customer service. This is an important aspect since the owner/landlord,
as well as the tenants, will be dealing with the company regularly. Strive to find
a company that is courteous, attentive, responsive, prompt, friendly and helpful.
Ask about their experience and expertise. Determine if they have the right level
of sophistication for your properties in question.
It is important that the manager, company and their overall business ethics inspire
confidence and trust in you so you’re completely comfortable in assigning the property
to them.
What a Property Manager Does
- Manage Finances: Investors can get good returns provided
that they stay within their budgets. A property manager should have good money management
and bookkeeping skills to help budget for the various expenses that come along with
maintaining a building, repairs, taxes and advertising.
- Manage Property Promotions: Property managers can advertise
through newspapers, the Internet, and more, to find suitable tenants for vacant
units. This process includes showing the potential tenants around the property,
receiving and processing applications, screening and running credit checks, and
choosing the most qualified tenants. In addition, the property manager should research
the area to ensure an appropriate rate is being sought for rent. Getting an owner
premium rentals for the least expenses is one way to really maximize their returns.
- Manage Legal & Taxes: Lease agreements, renting, building
upkeep, and staying within federal and state regulations are all part of the job
for a property manager. He or she will also manage the paying of taxes and bills
for the property. The manager should have good legal knowledge about property and
tenancy laws for preparing deal papers, and the expertise to include suitable clauses
and take appropriate legal action against a tenant if any agreements are violated.
- Manage Tenants: This involves everything from finding
tenants for the properties and verifying their background to collecting rent and
resolving any tenant issues or complaints that arise from time to time. It is the
responsibility of the property manager to ensure that the units yield consistent
rent and that they maintain good relationships with the tenants, while maintaining
consistent and fair enforcement of the rules and regulations. A good property manager
will be quick to resolve issues caused by problem tenants and be firm in evicting
them, if need be.
- Manage Maintenance: Property managers help keep buildings
maintained and in good condition so that it conforms to local health regulations
and safety codes. This includes responding to tenant requests for repairs and dealing
with any emergencies. They schedule regular maintenance, such as cleaning common
areas and keeping up the lawn and landscaping, service heating and air conditioning
systems regularly, painting and electrical inspections. Managers may bring in plumbers,
technicians and other service vendors when needed.
- Prepare Reports: A good property manager will prepare
detailed reports for the owner to help project profits and losses. These may be
done on a monthly or annual basis … or both. In addition, a manager should prepare
balance sheets to record details of income and expenses, and maintain a tracking
system of miscellaneous financial records.
Having a good property manager on your side goes a long way in ensuring easy, profitable
and stress-free investing. It can bring you hassle-free rentals and maintenance,
while optimizing your cash flow and return on investment.
Questions to Ask Before Hiring a Property Manager
Finding the right property management company that fits your expectations may seem
like an impossible task. However, with a bit of research and by asking a few questions,
you can be on your way to success.
How much will it cost?
Fees can vary across the nation, from 4 to 12 percent. Make sure you know upfront
how much it will cost. Some companies offer all-inclusive packages, while others
charge separately for each service. Regardless of the structure, all fees must be
included in the contract.
What all does it include?
Property managers differ from company to company in what amount of responsibilities
they’ll maintain. Prior to making a final decision, be sure you know exactly what
it is the manager offers and determine if it meets your needs. Consider full-maintenance
services, accounting services and tax calculations, property insurance claims handling,
and more.
What property experience do they have?
Choose a company that has experience in managing properties similar to your own.
Also, be sure to research how well their other properties are maintained.
Who will handle the property?
Find out who at the property management company will be assigned to handle the property
full time. Make sure that they are experienced and professional, and that there
is someone available at all times to handle issues when they arise.
Are there any hidden costs?
Some companies will charge an extra fee for items such as showings or evictions.
Ask about this upfront to avoid any surprises down the road.
What is the process for fee collection?
Determine if you will be billed monthly or quarterly, and ask about direct deductions
from your account.
What do they do for advertising/marketing?
Gain an understanding of how they promote properties and what costs are associated
with it.
What are the estimates for preparing units?
Ask about typical cleaning fees and how long it will take to clean up a unit before
it’s rented out again.
What procedures will require owner approval?
Determine an amount that the property manager can spend on repairs without having
to get owner approval.
What are their hours of operation?
Find out what their business hours are on weekdays, weekends, and holidays. If no
one is in the office, how would you or a tenant get a hold of them?
What do they do for their accounting system?
Inquire as to what reports they’ll send, how often and by what means. Make sure
their software programs are compatible with yours, if they’ll be sending them electronically.
It’s imperative to have impeccable systems for financial tracking, equity growth,
and cash flow.
Can they provide some references?
Ask the property manager for at least three references of other landlords/owners
whom you can contact. Seek the opinions of those who have worked directly with the
property management company with similar types of buildings.
Do they manage other properties?
Many property management professionals handle multiple properties for various landlords/owners
at the same time. If this is the case, ensure that the buildings they manage are
similar to yours. Ask how they plan to split the time between properties.
Connect With Us Today
Celtic Property Management could very well be the right property manager for you.
Give us a call to discuss your needs today: 816-214-8354.