Owning income property is one thing. Managing income property is a whole other thing. And I want to take a moment here and give a few pointers on how a good property manager can make your real estate investing career a whole lot more fun.
What a property manager can do for you;
- Provide a buffer between you and your tenants
- Advise you as to current rent values
- Advise you as to current rent trends and occupancy rates
- Advise you as to necessary updates and repairs to attract quality tenants
- Offer the property For Lease or For Rent
- Advertise the property For Rent on all available medias
- Screen possible tenants (credit, criminal and sex offender background checks)
- Collect rents and even pay mortgages, HOAs and other related expenses
- Take care of all repair calls and arrange for solutions
- Take care of all monthly upkeep to minimize deferred maintenance
- If necessary, initiate eviction process
- Evaluate tenant care of property during and after lease
- Refund security deposit based on merit
The list above is not all inclusive. But it should help you to get started when the time comes to find a property manager that is right for you. I recommend interviewing at least two. And find a property manager that is intimately familiar with your community. Here are a few more things to find out from those you interview;
- Are you licensed?
- Do you have to be licensed in this state? (In Texas anyone not working as an employee of the owner of that property needs a Brokers license.)
- What are the laws of this state regarding how much rent and deposit monies you can collect from a potential tenant up front?
- What are the state laws when it comes to holding the security deposit?
- How many units do you manage within 5 miles of here?
- What are feelings towards repair issues?
- Who does your repairs?
- What are the repair fees?
- How are repair calls handled?
- What are your monthly fees?
- What are your rental fees?
- Do I have to sign and exclusive agreement with you that MAKES me use you as my real estate agent in case I wish to purchase more or liquidate these properties? (Some want you to. To that I would say NO!)
Screen your next property manager carefully. Get your questions answered. Go with your gut after that. Do not sign anything longer than one year and try to get some sort of escape clause after a 3 month trial period so that you can evaluate their work.
I hope this helps you with the success of your income properties. Remember, real estate investing isn't easy. But it should be a business that is run efficiently so long as you get the right help.
I am all ways looking for quality properties to manage.
Call and lets talk if you have any specific questions.
Sincerely,
Ken Kirkpatrick JR
BROKER-Owner
254-681-5179 cell
