3 Things to Look for When Hiring a Property Manager
Is it time to hire a property manager?
The percentage of households that rent has risen to 43.3 million in 2016. That number is expected to climb since home prices continue to increase. That, combined with tightening credit by banks, will lead more families to choose to rent their home.
If you own one or a dozen rental properties, hiring a manager can help you save time, and enjoy the fruits of your investment, rather than dealing with tenant issues.
Keep reading to learn the top tips to hire the best manager for your rental properties.
Do You Need a Property Manager?
Are you on the fence about hiring a manager?
There are many benefits to hiring a manager. Yes, their fees can be between 7-10% of your rental income, but it can be worth it in the long run.
A manager already has a network of contractors and handymen who can take care of repairs. They are well-versed on fair housing laws, too.
You’ll need to weigh how much time you currently spend on your properties. Your budget and rental income need to be considered as well.
If you find that you don’t like to deal with tenant issues or you have cash flow and vacancy problems, a good rental manager can help you resolve them.
Tip #1: Hire an Experienced Manager
The first step to hiring the right rental manager is to make sure they have the experience to handle your property.
You can start by asking around for referrals. Then check to see if a manager has housing certifications, such as training for fair housing compliance.
Do some research online to see if there are reviews on Google or Yelp. The Better Business Bureau is a good place to go to see if there are negative reviews or complaints against the manager.
Tip #2: Ask the Right Questions
You should make it a point to interview several candidates to handle your properties. When you do, these are some of the questions you should ask.
- How long have you been a property manager?
- What types of properties do you manage?
- How many properties do you manage?
- Do you have referrals I can contact?
- What type of fees do you charge? Are there service fees on top of that?
- How are payments handled?
- What is your procedure for maintenance & emergency issues?
These questions are a starting point to determine if a manager is a good fit for you.
Tip #3: Read the Management Agreement
You’ll need to carefully review the rental management agreement with a fine-tooth comb.
The agreement should clearly outline the manager’s fees and what they are responsible for. Beyond that, look for extra fees. If a manager has to call someone for repairs, do they charge a service fee on top of that? Many managers do.
Be sure the agreement stipulates how much the manager is authorized to spend on repairs before contacting you. In most cases, it’s between $250-$500. Take the opportunity to set a number that you’re comfortable with.
Save Time When You Hire a Property Manager
Hiring someone to manage your rental properties can help you increase your rental income, as long as you hire a good manager.
They’ll make sure that your property is occupied and is profitable. That gives you the time to focus on other projects.
If you’re ready to hire a property manager, contact us today. We’re happy to answer any questions you have.
