Home Property Management Solutions

Property Management – The ABCs of Property Management

With record-low home prices, many homeowners are deciding to rent out their property instead of putting it up for sale. This change in strategy for the future of their home may have created an unforeseen issue…property management.

You could now face new questions. Are there laws governing rental properties? Who is responsible for any repairs? How does one go about finding responsible tenants? These are all good questions, and one that can be answered by quality property managers. Here are a few things you should consider when thinking of hiring a property management company that I’ll refer to as the ABC’s of property management.

Ask – When seeking a property management company, ask questions to clear up any confusion you may have about the process.

  • How will they market your investment to achieve the best rental income and select qualified tenants?
  • Are they current on all the landlord-tenant codes and laws?
  • What procedures are in place for the collection and disbursement of monies owed?

Benefits – Consider the benefits to determine if hiring one is the right choice for you in your situation.

  • Reputable companies offer “peace of mind” to the owners while protecting their investment.
  • These managers serve as intermediaries to resolve any issues between owner and tenant before they become major headaches.
  • They can provide credible resources for maintenance of the home to guarantee professional work of any repairs needed.

Cost – Review your finances to see if the cost of hiring a manager fits into your budget.

  • Most companies charge between 8-10% of the monthly rent to cover their services depending on the extent of their involvement with your property.
  • Marketing of your rental (Newspaper ads, internet, posted signs) is usually covered by this fee.
  • The property manager will discuss any repairs that need to be made to the home and determine if the owner or tenant is responsible for covering those costs.

While these are just the basics when considering a property management company, this is vital information you need to familiarize yourself with to better understand the process. Before you hire someone, check to see if their services are in line with your expectations. If not, ask yourself if your expectations are too outrageous or if you need to seek a different company. Hiring a qualified property manager does not have to be a daunting task as long as you do your research ahead of time.

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