Hiring a property manager

[Patrick GRibbin]

Hey guys I was wondering if I could get advice/suggestions on questions I need to ask a property manager before hiring them. My partners and I purchased one last year that we are self managing at this point but we want to purchase more this year. Because of specific situations for us it will be easier to bring an manager in for all of the properties. We only have a single family home at this point but are looking into small multi family for our next purchase. Eventually we want to get into something larger. Besides the fees is it good to ask if multi family is something they are looking to add to their portfolio as well? If you have advice or material to review please let me know.

[Kim Meredith Hampton]

@Patrick GRibbin Here is a copy of a blog that I wrote on Hiring A Professional Property Manager. Best of luck:

Hiring a property manager is an important decision, and can be an asset for a property investor, but can also be a detriment if not chosen carefully and without some due diligence. Here are 10 tips on hiring a professional property manager:

1. Make sure that your property manager is a licensed Realtor or Broker, look them up on DBPR, the department of business & professional regulation.

2. Make sure their office is relatively close to your rental property. The farther it is, the harder it is to manage, show, find tenants, get vendors and inspect

3. Look at the experience of the Property Manager. They may not know the Fair Housing laws, take too long to fill the vacancy, have licensed vendors. How many units do they manage, or are they just doing this “on the side” for extra income.

4. What is their policy for dealing with evictions?

5. Are you willing to give up control? Most Professional Property Managers do everything; collect rent, schedule maintenance, pay taxes, pay mortgages & HOA dues, process security deposit claims, marketing , leasing , on call 24/7, handle landlord-tenant conflict. Its exhausting…..

6. Examine their management agreement, check to see if there is an out clause if you are dissatisfied, make sure it spells out the responsibilities of the owner and the property manager

7. What type of fees do they charge? Most companies will charge a management fee, leasing or placement fee and renewal fee. Ask if there are any any additional fees for maintenance, advertising, evictions, etc... and make sure they are outlined in the agreement. Do your homework, don't be fooled by low or flat management fees.

8. When and how will you receive your money each month? Will I receive a monthly statement?

9. Do they perform property inspections? What kind and how often?

10. How do they handle maintenance complaints or emergencies from tenants?

Property managers are great as a third party buffer or middle man, this is a business to us, it's not personal. Tenants understand they are dealing with a professional.