Hiring a property management company is a fantastic idea if you have a small apartment building. Having someone taking care of the details of property implies you will have more time to locate the investment that is great. Also, trying to do it all yourself is the surest way to make your property investment experience a bitter one. To find a property manager, ask these questions.
1. Other properties they manage? It’s best if they have rental properties that are similar to yours. You can also drive by their properties to see how they’re maintained.
2. The fee? They change around the country from as low as 4 percent of gross rents for buildings, to as large as 12 percent for single-family houses. Be sure the fee is clearly stated and understood.
3. Extra costs? Are showings additional? Do evictions cost extra (beyond the legal fees)? Any additional extras?
4. Who really handles your property? It’s better if one person handles your construction all the time, and has some experience. Get their name.
5. How and when is your fee collected? Will you be billed, or can it be deducted from your account directly? Monthly? Quarterly?
6. Type of advertisements? How will the units be advertised by them and what will it typically cost you?
7. Time and cost? What’s the typical cleaning fee on a vacancy, and just how long will it normally be before it’s rented out again?
8. Sort of accounting? Which kinds of reports do they send, and how frequently? How are accounts set up?
9. Their hours of operation? What are their business hours, and who chooses weekend calls?
10. What needs owner approval? What your authorization is needed by dollar amount, and is this negotiable?
Questions should be asked by you, according to your particular needs and the property. Make sure you ask everything upfront, and you’re going to have fewer misunderstandings, and a fantastic manager. Property investing and being a landlord is far less stressful with a good property management firm.