Taking care of your own home can be hard enough, and maintaining a rental property that someone else lives in and you do not see every day is even more challenging, and nearly impossible if you live out-of-state. If you don’t mind maintenance projects and want to take a hands-on approach, it might be worth the effort to act as your own property manager.
Indeed, managing a rental property can be a time-consuming endeavor, and many property owners opt to delegate these responsibilities to a professional property manager or management company. When seeking assistance with your investment property, it's crucial to know the right questions to ask potential property managers and where to locate them.
Benefits of Employing a Property Manager
Owning an investment property can indeed be a lucrative venture, providing you with a steady stream of rental income. Nevertheless, it's important to recognize that property ownership comes with various responsibilities related to property maintenance and upkeep.
The property is not local – If you can’t physically check on the property or make repairs, it makes more sense to hire a local property manager.
It makes better fiscal sense – A professional property manager can often handle rental issues and keep your property occupied with better regularity. This often means that investing in a property manager will allow you to earn more from the property.
You want a fully passive income – Your investment property may be just that – an investment. If you’d prefer to simply earn the income without taking on extra responsibilities, a full-time property manager is the best route.
Researching Potential Property Managers
Once you've made the decision to hire a property manager for your building(s), the initial step involves conducting thorough research to identify local property management companies or professionals who can effectively meet your needs.
Ask the Right Questions
When you're considering hiring a property management company, conducting an interview is a crucial step to ensure they are the right fit for your needs. Whether you're speaking with the individual who will directly oversee your building or a client manager representing the company, it's essential to ask pertinent questions.
This list of questions is not exhaustive but it should give you a good framework to start. You can also add your own questions, specific to your needs and property.
Questions to ask property management company:
Is the company licensed?
How long have you been in business?
What type of experience does your personnel have?
How many properties do you manage?
Ask for the background of the manager for your property and/or information on managers who will deal directly with your building and tenants.
Do they manage too few and seem inexperienced?
What types of properties do you manage? Look for companies with experience in the type of building you own.
How would you handle vacancies?
Questions to Ask a Potential Property Manager:
How would you handle a tenant that does not pay rent?
Is this your full-time job?
Do you have any relevant licenses/education?
What are the steps to properly evict a tenant?
Do you know the safety codes needed for the building?
What are the rules for collecting security deposits?
Establish Your Expectations and Create a Management Strategy
Prior to hiring, it’s important to lay out the type of business relationship you expect from your property manager. This might include the types of communications you need and an expectation of how available they are for your buildings.
In some cases, it might be perfectly acceptable for a property manager to only contact the owner with monthly reports or updates. In other cases, the building owner is far more involved in the day to day running of the building.
Contemplating a Quick Sale of Your Rental Property?
An investment property can indeed generate additional income, but it comes with its share of responsibilities and costs. For some property owners, the investment may not align with their priorities due to the time, expenses, and effort required to manage a rental property.
If you’ve decided that the additional responsibility isn’t worth the monthly income or if your current property has you in the red, Creative Housing Duo can help. Contact us today to discuss the quick and simple process of selling your property.
Comments