3 Things to Consider When Hiring a Property Manager

By E-Renter Tenant Screening
Posted on September 23, 2011 under Landlord Tips | Be the First to Comment

It seems like more people are getting into property management. The shift from a home-buying boom to a strong rental market could be one big reason. Have you seen the seminars popping up that claim to teach real estate agents how to manage property in one 3-hour session?

Property management takes a strong set of skills and expertise. Your property manager is supposed to enhance your business and keep you safe—not be another potential liability that can cause your business harm.

Here are three things to watch out for and consider if you’re planning on hiring a property manager:

• Avoid hiring a friend or family member. Business and friendship seldom mix successfully. If your friend who’s been selling houses just added property management to his list of services, do you really want to be his guinea pig? Does your cousin really have the guts to evict tenants and handle rent disputes? And are either of them educated about rental and tenant laws?
• Realize that you need to manage the property manager. It would be nice if your PM took care of your rental business so well that you didn’t have to do anything but count your money, but you will still need to follow up on expenses, repairs, rent collection and vacancies. A good PM will provide appropriate reports on a regular basis, but do your own follow-up just to be sure.
• Find a PM who really cares about your properties and your business. The higher cost of an effective property manager could be well worth it. Interview several to find one you who knows the local market, the local and state rental laws and who agrees with your management philosophy. Ask for and check references. Get examples of their reports. Check out their insurance and bonding status.

As the rental market heats up, more people will be adding property management to their list of services. Be picky and hire one who is knowledgeable and experienced.