Managing a Rental Property Manager

So you have some investment properties and think it is time to pass the management duties off to a full time manager.  You feel the 7% to 10% monthly fee they charge is well worth it.  Before you jump and think it will be easier make sure you have a good manager first.

Property managers are similar to your tenants in the sense that you have to stay on top of them.  They are charging you for a service and if you don’t stay on top of them you won’t get the best service.

Make sure the manager can be readily contacted in case you have issues.  For instance a friend of mine went by one of my properties to see how it was doing and the outside of the property had some storm damage.  I called the manager and they said, “oh yeah the tenant told us about that.”  I told them see ya!

Don’t be afraid to fire your property manager if they are inadequate.  This is business.  You are not here to start a social club.  Make sure they get good tenants and once they do make sure you get a copy of the signed lease and tenant’s application and background information the manager used to determine the tenant was a good choice.

Make sure you get a good contract with the management company that outlines exactly what they are responsible for and what they aren’t.  Who will schedule repairs etc.  You can usually pick up a standard contract at your local office supply store.  Most managers will have a contract of their own, which is fine, just make sure you check and re-check it so that you are covered.

Property managers work well when you have properties from a far distance, but can be just as bad as some tenants if you don’t stay on top of them.

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