The residential real estate market is hot right now in a lot of U.S. cities, and that means properties are exchanging hands left and right. Yet some aspiring buyers are priced out, which means an opportunity for landlords looking to fill this niche. Will 2019 be the year you expand your real estate portfolio outside the current geographic area?
Great, but what about all the considerations that come with such a venture? If you purchase a rental home in a different state, you may find it quite difficult to keep up with all the responsibilities. Who is your tenant going to call in the moment of need?
That’s why you need to seek out a trustworthy, reputable and reliable property manager to relieve some of the burden. Make the wrong choice and it could cost you and your tenants big time. Follow these steps to find the right property manager so you can rest a little easier knowing your properties and tenants are in good hands.
Step 1: Get referrals.
The best way to find a reputable property manager is by referral. Start with contacts in your network. Who sold you your home? Does your real estate agent know any good property managers? Do you have friends with investments in the same area? Next, check your area’s Better Business Bureau to make sure your prospective property manager is in good standing. Once you have a few recommendations, reach out and interview each one so you can make an educated decision.
Step 2: Note the first impression.
If possible, meet each candidate in person. Is the representative dressed professionally and well-spoken? Put yourself in a prospective tenant’s place. Would you want to rent a home from this person? If there are red flags, you’ll want to reconsider before it’s too late.
Step 3: Find out how the person handles advertising and vacancies.
As a property owner, you’re concerned with occupancy. Does the property manager have proven strategies and systems in place to get results? If not, you may want to look elsewhere. A high occupancy rate is a win-win, so they should deliver in this regard.
Step 4: Negotiate terms of the contract.
Above all, the property manager should add value. If it’s more about the fine print than the convenience factor, then you have a problem. Read through the Owner/Property Manager agreement and ensure the following is spelled out:
- Who is your main contact and what is their information?
- How much do they charge for their services?
- How many days’ notice does the property manager require to terminate the relationship?
- How are maintenance and repairs handled?
- When should you expect to receive the tenant’s rent each month? Is direct deposit an option, or will you receive a check in the mail?
- Will the property manager be responsible for keeping the tenant’s security deposit, or will you?
- How will the manager deal with a delinquent tenant? What are grounds for eviction? Ask the manager to describe their process in detail and ask how they will convey the same information to the tenant.
Step 5: Review the manager’s tenant lease agreement.
Last, review the lease in the context of tenant relations. Ask these questions:
- How much of a security deposit is required and how and when will it be returned?
- What is the monthly rent and how long are the lease terms (i.e. months, years)? If the price and terms are unreasonable, it will sit empty for a long time.
- How are late rents handled? Is the process clearly outlined and will a tenant understand the consequences?
- Make sure the tenant’s responsibilities are clearly outlined and there are no gray areas.
- What are the consequences of breaking the lease?
- Who will the tenant call with questions? Sometimes, property managers have different contacts for leasing questions and maintenance issues.
You don’t have to go on a wild goose chase to find an exceptional property manager when you can find one right in your backyard. You just have to know where to look! A professional property management company with years of experience and satisfied clients can save you an enormous amount of time and energy. Instead of having to deal with the tedious or nitty-gritty tasks of rental management, you’re free to focus on the most important aspects of your job. And who wouldn’t want that?
Our property management company is well equipped to manage your tenant load and your properties from start to finish! These services include property maintenance and compliance, vacancy marketing and tenant placement, rent collection and accounting, on-call property managers, web-based portals for property owners and tenants, and other services that can make your life easier. In other words, we specialize in full-service property solutions. We have three goals for our clients: maximize profitability, keep operating expenses low without sacrificing tenant satisfaction and build value by protecting your investment. Contact our office today to find out more! http://www.virginiabeachpropertymanagementinc.net
