While real estate can be a lucrative investment, managing tenants, repairs and related issues can be challenging. This is especially true for owners who live elsewhere or who have full-time jobs that exceed real estate investment. For these people, hiring a suitable property management company can provide much-needed peace of mind. Here are some questions to ask when interviewing potential property managers.
How long have you been in business?
The lengthy records in the industry not only often indicate a trustworthy business, but also mean that the manager has handled most of the rental issues reasonably. Must have experience with a range of issues, including legal, accounting, emergency response and maintenance expertise.
2. Are you licensed by the appropriate state and industry agencies?
In most states, licensed managers must take an approved property management course and pass a state permit exam. A Licensed Real Estate Manager [PMIC] can manage other managers and run their own business. He or she understands state regulations that deal with rental income, margins, and other financial matters.
In addition to licenses, certification can also indicate broader industry knowledge. These certificates are awarded by trade organizations, including the Real Estate Management Association, the National Apartment Association, the National Association of Residential Property Managers and the Institute of Community Associations.
Can you provide recommendations from past customers?
Property managers should be able to provide contact information to current or past customers who have agreed to speak on their behalf. Potential customers should check the address of the business control to ensure they are functioning properly. For the same reason, relying on recommendations from trusted contacts is a good way to review a short list of potential companies.
What is the fee you charge?
Although there can be a wide range of industry fees, the standard fee includes management fees, 4% to 12% of monthly rent, depending on the location and conditions of the real estate, whether there are multiple holdings, how many units each, and what type of service is required. . When a house is unoccupied, some companies charge a vacant fee each month, while others require a full fee, regardless of whether there is a current tenant. New customers can set up a fee of up to $300. In addition, those who rely on management companies to find tenants can pay between 25% and 100% of the first month's rent [usually around 50%].
How often do they check?
The answer to this question is the key to ensuring that real estate investments are protected. Although the property management company should conduct long-term turnaround inspections at any time, regular inspections should be conducted when there are long-term tenants. Intervals may vary, but units or houses should be inspected at least once a year, and an external inspection should be conducted quarterly to identify any potential development issues.
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