Author Archives: Gracie

Property Management Services – A Real Estate Investor’s Best Friend

Do you own an investment property that you’re renting out, and you’re currently handling all of the chores of being a landlord yourself?

Are you thinking about investing in rental properties, but you’re not sure if you’re up for the task of being a landlord?

If you answered yes to either of those questions, whether you are holding onto or considering investing in a single-family rental (SFR), duplex, or triplex, you should think about engaging a professional property management firm to take the work off your shoulders.

Let’s take a look at what property management is, what a professional management company handles, and how to decide not only if it’s time to hire one but also how to hire the right property management firm.

What is Property Management?

Let’s start off with getting an understanding of what a property management firm does and doesn’t do. There are several critical tasks a property manager can help you with.

Setting the right rental rate: You can always ballpark this by looking through the classifieds, but a good property management company actually conducts thorough market studies to set a rental price for your property. This makes sure you have a great balance between maximizing your monthly income and keeping a low vacancy rate.

Collecting the rent: One of the most difficult aspects of being a landlord is collecting the rent. Property management firms have efficient, tried-and-true systems that will do a great job of collecting the rent and maintaining on-time payments.

Marketing and advertising your rental unit: When vacancies occur, you want the rental unit occupied as quickly as possible. A professional property management firm has experience that helps it market your property in just the rate way to make sure someone moves in quickly.

Finding and managing tenants: The property management firm will take the work out of finding and managing tenants for you. This means screening new tenants for criminal and credit checks, collecting references, and getting the lease signed. Once the home is occupied, handling routine and emergency maintenance and inspections are part of what a professional management company will do for you.

Managing relationships with contractors and other vendors: Do you have deep-seated relationships with all of the maintenance workers, tradesmen, contractors, suppliers, and vendors needed to properly manage your rental? Probably not. But a property management firm does and can get you the best work for the best price, while handling the burden of overseeing necessary maintenance projects for you.

Keeping you in compliance with the laws Housing regulations and property laws are complicated and confusing when you’re renting and maintaining your rental property. These can include local, state, and federal regulations, along with fair housing regulations like the Americans with Disabilities Act. A property manager can keep you out of hot water by keeping your property up-to-date and in compliance with all of these regulations.

Allowing you to invest from afar: If you’ve moved to a place where investing in rental units don’t make sense, you might think that investing in SFRs or other rental properties isn’t possible. With a good property management company by your side, you won’t be so limited in your investment opportunities.

I only have one property; so why do I need a property manager?

If just reading through all of the tasks that a property manager can handle for you isn’t convincing enough, consider this: do you want to be able to go on vacation without interruption? Do you really enjoy phone calls about backed up plumbing at 3:30 in the morning?

Chances are, you want the freedom to leave town for vacation or just have uninterrupted time with family for the holidays. You don’t relish the task of dealing with emergency maintenance chores in the middle of the night, and you probably dread the thought of trying to find a good tenant when your existing ones move out.

Even if you only have a single investment property that you’re renting out, you can benefit strongly from hiring a property management service. They have decades of experience that you’d be hard-pressed to match yourself, and can ensure your property is maintained impeccably while still maximizing your profit.

Okay, I’m convinced, but how do I know who to hire?

The best way to find out about quality management companies is based on the experience of others. If you are local to your rental property, attend your regional real estate investment association meetings to get recommendations from other landlords.

You want to make sure you find out how many units the company is managing, and how many employees they have doing the work. A trained employee with the right tools and proven processes can successfully manage between 30 and 40 units, as long as they’re not also playing accountant.

When you’re interviewing different qualified property management firms, here are the questions you should get answers to:

    • What is the cost? Generally, the monthly fee for property management is between eight and twelve percent, plus expenses. Remember you get what you pay for, so it is important to balance the cost and services.
    • How well do they communicate? You want someone who uses email, but is still responsive to the telephone. If you don’t get a response in a timely fashion, it’s time to walk somewhere else.
    • How easily can I terminate the agreement? If things work out, what will it take to terminate your agreement? Make sure you know this up front, along with any penalties.
  • How experienced are they with Section 8? This can be supremely important, since Section 8 housing and tenants are great income opportunities. Make sure they have adequate experience with such properties.

If you do your research, you can readily find a reputable firm to handle your rental investments for you. This will free you up to enjoy the fruits of your investment without as much of the hassle.

Property Management Education Course

The Conundrum of Investment Properties

Financial specialists looking for expansion have as often as possible swung to a rentable house or an accumulation of investment properties to try and out and spread danger over their speculation portfolios. Likewise with any speculation individuals ought to consider the majority of the issues, issues, and pitfalls alongside the potential returns. Sadly, a considerable measure of financial specialists aren’t mindful of the potential issues and don’t take an ideal opportunity to research these issues before they close escrow. A property administration course and a course in fundamental land speculation would be incredible ventures of time for somebody considering investment properties as a wellspring of venture pay and long haul speculation. A portion of the issues and concerns are talked about beneath.

Unpracticed Agents and Uneducated Investors Make a Deadly Concoction

Rentable house financial specialists regularly use the administrations of an unseasoned real estate agent who does not completely comprehend investment properties, who does not completely comprehend rate of profitability, and who does not completely understand what top rates are. More often than not these speculators simply swing to their companion ‘the real estate broker’ or utilize any real estate broker they are acquainted with or are alright with to buy these sorts of properties pitiful as that may sound.

The truth of the matter is most land specialists are not sufficiently shrewd to comprehend rentable houses, top rates, return on money, degree of profitability, utilized contributing, and the normal terms connected with speculation properties. To exacerbate this most speculators at first are similarly unpracticed and do not have the best possible ability to find and buy an elite venture property. Nobody needs to look more distant than this inquiry: Why might a proprietor be offering a superior speculation property? That inquiry ought to be the first of numerous asked by both the operator and the financial specialist. One issue is that a few speculators are just so eager to get into a property they look past reality and the numbers and simply need to gain power of the property. Generally this is an imperfect methodology in light of the fact that most specialists will dither to stop the anxious buyer because of a paranoid fear of passing up a major opportunity for a sound commission.

The Property Management Profession is an Equalizer

After a financial specialist has shut escrow, if the naiveté operator hasn’t offered to “deal with” the property for them, a considerable lot of them choose to deal with the property themselves (just authorized land representatives can oversee investment properties). At the point when these clueless proprietors are confronted with the nuances of Fair Housing laws, Equal Opportunity issues, social liberties issues, hostile to separation issues, awful inhabitant screening issues, notification of default issues, expulsion issues, lastly accumulation issues ordinarily they swing to an expert property administrator or property administration organization to save their sinking ship.

On the off chance that protected opportune an expert property supervisor can pivot a venture property and settle on the financial specialist’s choice pay profits. With an able property supervisor the arrival on speculation can really be acknowledged and the proprietor really can have sufficient energy to appreciate the venture, not spoil it or stress over it. The property administration organization will deal with the speculation, the support, the occupants and the majority of the attending issues connected with the property.

Property Management Education Course

Teaching both unpracticed land specialists and novice speculation property proprietors about judicious property administration is basic for boosting the financial specialist’s arrival on venture. It is uncommon for a proprietor to effectively deal with their property or properties and make the greatest conceivable return accessible in that specific commercial center. The reason it is uncommon is on account of the run of the mill chief proprietor is not using the most recent and most noteworthy property administration strategies, programming, screening methodology, and above all is not staying aware of the continually evolving landowner occupant laws. Every January there are a few apparently ever progressively inhabitant indebted person favored laws established which a great many people don’t know about. At the point when another law produces results that is another potential trap for the solitary officer proprietor to abuse and wind up on the wrong side of the grumbling.

The beyond any doubt fire path around this potential issue is to employ a property administration organization to oversee and ensure the proprietor’s speculation, and above all boost the arrival on venture. One other path around this issue is to have each proprietor take a property administration course and take in the calling starting from the earliest stage without experiencing the tough times of encountering occupant issues direct.

At last, a proprietor could contract a property administration organization that notwithstanding the greater part of the common staff likewise has a land legal advisor on staff who can settle and answer the majority of the lawful inquiries that apparently wind up front. This would be a genuinely good choice and a simple one for the proprietor to make.

Property Managers, Commercial Tenants and Evictions

Your commercial tenant failed to pay rent. You have heard that things are not going very well for them, but now it is apparent. As a property manager your duty and obligation is to resolve the issue as quickly as possible. When the tenant failed to pay by the due date they have effectively breached the lease and you are entitled to evict the tenant from the property. An eviction lawsuit commonly called an Unlawful Detainer action is a fairly straightforward legal process. The important thing for property managers to know is that the steps involved in this process are critical and must be followed to the letter of the law. A real estate attorney representing both parties in the action is common. If your property manager has followed the law, given proper notice, and has a detailed file of all of the correspondence between the tenant and their company the unlawful detainer action should go fairly smoothly and the landlord or owner should prevail.

The First Step Is To Resolve Rent Payment Issue If Possible

If at all possible the property manager should make every effort to get the tenant to make the rent payments and bring their lease current. If this involves waiting a few extra days for payment maybe this would be the best course of action instead of filing a lawsuit. Your individual company policies and best practices will dictate this action, but it would be better for all parties to resolve before litigation.

Three-Day Notice Drafted

If a payment is not forthcoming then a ‘three-day notice to pay or quit’ must be prepared and properly served on the tenant. This notice must be in a specific legal format. A commercial owner, landlord or property manager can choose between different types of 3-day notices; 1) specifies the precise amount of rent owed; or 2) estimates the amount of rent owed – usually when a tenant is paying a percentage rent.

If the lease requires the tenant to pay rent and other separate amounts for triple net or CAM charges, the property manager should get the proper advice on whether or not two separate and distinct notices are required to be served. For example, if the property manager or landlord accepts an overpayment of the rent because they have miscalculated and the tenant overpaid estimated rents and CAM charges this may lead to a tenant victory in the unlawful detainer action. This would also possibly give the tenant the right to attorneys’ fees. It is critical to be correct in this step.

The Three-Day Notice Must Be Properly and Legally Served

The tenant is deemed served when they are personally served with the three-day notice, or a responsible person at the place of business is personally served on the premises. In the event no one is available the landlord or property manager can attach the notice to the front entry door of the business premises while simultaneously sending a copy of the three-day notice by certified mail return receipt requested. The landlord or property manager must then prepare a ‘proof of service’ in the proper format which states in pertinent part that the ‘three-day notice’ was served on the tenant, or describe the method of service.

The Property Manager or Landlord Has a Three Day Waiting Period Required for Service to be Effective

After properly serving the three-day notice a three day waiting period begins on the next business day. If the third day falls on a weekend or holiday the three day waiting period is extended to the next business day.

If the tenant decides to pay all rent due at this point or corrects any outstanding violation of the lease terms then the eviction process ceases. If the tenant makes partial payment the landlord or property manager can accept partial payment but must notify the tenant that they are not waiving their rights to proceed with an eviction.

In the event that the tenant has violated the lease by way of some criminal act or conduct then the eviction process continues.

At the end of the three day waiting period the landlord or property manager may go forward with filing and serving a complaint and summons.

Summons and Complaint are Prepared and Served

In the event that the tenant has failed to cure their outstanding rent violation, or failed to cure any other violation that they have been property notified of, then the landlord or property manager may proceed with filing and serving the summons and complaint to the tenant. A third party not involved with the action, typically a registered process server can be hired for a fee to serve the papers on the tenant. The summons, complaint and proof of service must then be filed with the court clerk’s office together with a copy of the lease, and then property served three-day notice and its proof of service.

Technical Mistakes Can Cause Delays

If the landlord or property manager has taken this process on by themselves there is a possibility that they have made a technical error in the processing, preparing, serving, and filing these documents. There are several technical areas of the law which must be followed or will result is substantial delays if they are not. A tenant who hires an attorney will likely find these technical errors, if the court doesn’t find the errors. This will likely result in delays which means money to the property owner. The best course of action in these situations is to hire an eviction attorney to help prevent delays and additional costs for the owner.

Court Proceedings Require that All Parties Appear in Front of a Judge

If the tenant does not contest the eviction

A properly served tenant has five days to oppose the eviction. If substituted service was used then the tenant would have fifteen days to file a responsive pleading to the action. If the tenant fails to oppose the eviction the landlord or property manager will seek a default judgment of possession of the premises. This will most likely be granted and the case will be referred to the Sheriff’s office for tenant lockout (see below).

If the tenant contests the eviction

In the event the tenant hires an attorney and contests the eviction then things will take a while longer. The tenant will be granted more time to prepare and there will be approximately thirty-day period in which a trial will be set. If the landlord wins then the tenant will have to pay the rent and other losses most likely including attorneys’ fees. If the tenant wins the landlord may have to pay attorneys’ fees. In this situation a property manager really needs to be represented by counsel.

The Landlord or Property Manager has the Right to Lockout the Tenant

Assuming a landlord victory the county sheriff will post a ‘Five-Day Notice to Vacate’ the premises on the tenant’s door or entry into the business. On the sixth day the sheriff meets the landlord or property manager at the property. The landlord or property manager then receives a receipt of possession of the property. If the tenant is still there when the sheriff arrives, the sheriff will then physically remove the tenant. The landlord or property manager will now have a locksmith come and change the locks to keep the tenant out.

Notice to Claim Property

If the tenant leaves behind personal property there are state statutes that deal with this specific issue. The landlord or property manager must give the tenant fifteen days after the lockout period to claim any possessions from the property, or if the tenant left before the lockout, eighteen (18) days after the mailing of the “notice of belief of abandonment” to the tenant’s last known address. The notice must describe the property with specificity so the tenant can identify it, and the notice must also describe the storage costs. A prudent practice for a landlord or property manager would be to photograph and log all of the tenants’ belongings so that there was not a later dispute.

It is not legal for a landlord or property manager to hold a tenant’s personal property as security for payment of money awarded by a court judgment.

Unclaimed Property Disposed of or Sold

When the fifteen day waiting period is over the landlord or property manager can dispose of the tenant’s personal property if it is worth less than $750 or $1.00 per square foot, whichever is greater. If the property is worth more the landlord or property manager must auction it through a public sale held after properly published notice with the proceeds turned over to the county, minus expenses.

Conclusion

Although this article has briefly touched upon this process one should see that this is not a simple process, but is a process which should be taken seriously and professionally. It is always a best practice to have an eviction attorney help a landlord and/or a property manager through this process.

The Real Property Management Issue Is Education

The Conundrum of Investment Properties

Financial specialists looking for expansion have as often as possible swung to a rentable house or an accumulation of investment properties to try and out and spread danger over their speculation portfolios. Likewise with any speculation individuals ought to consider the majority of the issues, issues, and pitfalls alongside the potential returns. Sadly, a considerable measure of financial specialists aren’t mindful of the potential issues and don’t take an ideal opportunity to research these issues before they close escrow. A property administration course and a course in fundamental land speculation would be incredible ventures of time for somebody considering investment properties as a wellspring of venture pay and long haul speculation. A portion of the issues and concerns are talked about beneath.

Unpracticed Agents and Uneducated Investors Make a Deadly Concoction

Rentable house financial specialists regularly use the administrations of an unseasoned real estate agent who does not completely comprehend investment properties, who does not completely comprehend rate of profitability, and who does not completely understand what top rates are. More often than not these speculators simply swing to their companion ‘the real estate broker’ or utilize any real estate broker they are acquainted with or are alright with to buy these sorts of properties pitiful as that may sound.

The truth of the matter is most land specialists are not sufficiently shrewd to comprehend rentable houses, top rates, return on money, degree of profitability, utilized contributing, and the normal terms connected with speculation properties. To exacerbate this most speculators at first are similarly unpracticed and do not have the best possible ability to find and buy an elite venture property. Nobody needs to look more distant than this inquiry: Why might a proprietor be offering a superior speculation property? That inquiry ought to be the first of numerous asked by both the operator and the financial specialist. One issue is that a few speculators are just so eager to get into a property they look past reality and the numbers and simply need to gain power of the property. Generally this is an imperfect methodology in light of the fact that most specialists will dither to stop the anxious buyer because of a paranoid fear of passing up a major opportunity for a sound commission.

The Property Management Profession is an Equalizer

After a financial specialist has shut escrow, if the naiveté operator hasn’t offered to “deal with” the property for them, a considerable lot of them choose to deal with the property themselves (just authorized land representatives can oversee investment properties). At the point when these clueless proprietors are confronted with the nuances of Fair Housing laws, Equal Opportunity issues, social liberties issues, hostile to separation issues, awful inhabitant screening issues, notification of default issues, expulsion issues, lastly accumulation issues ordinarily they swing to an expert property administrator or property administration organization to save their sinking ship.

On the off chance that protected opportune an expert property supervisor can pivot a venture property and settle on the financial specialist’s choice pay profits. With an able property supervisor the arrival on speculation can really be acknowledged and the proprietor really can have sufficient energy to appreciate the venture, not spoil it or stress over it. The property administration organization will deal with the speculation, the support, the occupants and the majority of the attending issues connected with the property.

Property Management Education Course

Teaching both unpracticed land specialists and novice speculation property proprietors about judicious property administration is basic for boosting the financial specialist’s arrival on venture. It is uncommon for a proprietor to effectively deal with their property or properties and make the greatest conceivable return accessible in that specific commercial center. The reason it is uncommon is on account of the run of the mill chief proprietor is not using the most recent and most noteworthy property administration strategies, programming, screening methodology, and above all is not staying aware of the continually evolving landowner occupant laws. Every January there are a few apparently ever progressively inhabitant indebted person favored laws established which a great many people don’t know about. At the point when another law produces results that is another potential trap for the solitary officer proprietor to abuse and wind up on the wrong side of the grumbling.

The beyond any doubt fire path around this potential issue is to employ a property administration organization to oversee and ensure the proprietor’s speculation, and above all boost the arrival on venture. One other path around this issue is to have each proprietor take a property administration course and take in the calling starting from the earliest stage without experiencing the tough times of encountering occupant issues direct.

At last, a proprietor could contract a property administration organization that notwithstanding the greater part of the common staff likewise has a land legal advisor on staff who can settle and answer the majority of the lawful inquiries that apparently wind up front. This would be a genuinely good choice and a simple one for the proprietor to make.

Hiring A Property Management Company

Dealing with a property can be an all day work, particularly if the property proprietor has different properties. For property proprietors who offer their property for rental, quite a bit of this work incorporates keeping up the home for the inhabitants. For example, each ward has certain prerequisites and lodging codes for rental homes that must be met with a specific end goal to keep on offering the home for renal. Any code infringement gives the occupant the privilege to break their rent and empty the premises, which can make difficult issues for the property holder.

This is splendidly fine for the individuals who have focused solely on dealing with their properties. Be that as it may, this is just an additional stretch for the individuals who have different employments or obligations. This is the place a property administration organization proves to be useful. A property administration organization will assume on the liability of keeping up the property and gathering rental installments in the interest of the proprietor. Likewise, the property administration organization will likewise screen potential occupants and finish the important printed material with a specific end goal to get the property leased. Commonly, the organization will charge a little rate of the month lease as installment for doing these obligations.

Finding the right property administration organization can be extremely basic. Actually, numerous land organizations offer property administration administrations to a hefty portion of their customers. This requirement for property administration has turned into a more well known choice for mortgage holders who have property that they can’t offer.

Ordinarily, when a house is in the lodging market for a really long time, the property holder may transform it into a rental to stay away from a home loan installment that they can’t manage. Thus, the land can offer the home for rental or deal, contingent upon the property holders needs. HoweverBusiness Management Articles, numerous land organizations can are just prepared to offer occupant determination and lease accumulation administrations. It might be up to the mortgage holder to keep up the property.

The Lowdown on Property Management

Property administration is a sort of framework in which it manages diverse property sorts, for example, the land. To be more particular, it is an operation of mechanical, private, or business land. It is likewise the administration of hardware, tooling, individual property and also resources like the physical capital which are gained and depleted in building, repairing, and keeping up the finished result deliverables.

The accompanying are the nitty gritty lowdown of property administration which will serve as your guide.

The Important Role

One of the perceived and essential parts of property administration is the capacity of a contact between a proprietor and an administration organization which works in the interest of the inhabitant and landowner. Its obligations likewise incorporate reacting and tending to issues concerning support, tolerating rents, and offering cradles to the individuals who need to keep away from electorate of their occupants.

Two Sides Of Property Management

The parts of property administration are normally thought to two sides. The first is that of landowners or proprietors and the second one is that of occupants or leaseholders part. Taking care of the requests and wishes of the two parts is the principle objective which property administration truly considers.

Ad Is Essential

Another most crucial part of property administration is publicizing. All together for a property administration organization to wind up prominent and legitimate to their customers, they should not set aside or set promoting the last in their rundown. They should not extra at whatever time and should give careful consideration to their ad. Something else, their customers won’t belittle them. Moreover, one must be valid with what they say in their notice. This is the most ideal approach to gain regard and fame from general society. Expressions of mouth with respect to your organization will make this errand conceivable.

A Good Property Manager Means Success

You ought to shoulder as a top priority that the accomplishment of the property operations will depend more often than not to a property director. Regardless of the possibility that you have stunning credit store or awesome house, if the property supervisor is unpracticed with respect to their administration circle, then the organization’s position in the market will be in question. There is a high probability of disappointment for this situation. So for a property administration organization to be effective, their property administration must be friendly, open, diligent, and resolved to achieve their objectives regardless of what difficulties or troubles may emerge. Besides, all together for the property administrator to set arrangements at an abnormal state, he/she should likewise be objective situated, savvy, and sort out.

The Key To Success

One of the keys for a property administration’s prosperity and triumph is an all around arranged association of work. This is the place the utilization of the property administration reports comes in. This gives an amazing chance to keep up an eye with respect to situation. Information that ought to be incorporated into this report are the point by point data of the occupants and landowners and the late data concerning property condition.

Innovations Help In Property Management

Property administration structures are as of now accessible on the web. Some are free and some requires installment. These sorts of structures are likewise computed on a few distinct cases, for example, renting, support structures, and applications for proprietors and inhabitants.

11 Questions Landlords Should Ask When Interviewing a Potential Property Management Company

Owning investment real estate is a great option for those looking to make a longterm commitment as opposed as a shortterm speculation. The management of such investment should always be trusted to professionals who are dedicated and committed to the industry and know how to deal with complex situations that are otherwise commonly ignored by inexperienced landlords.

It is of the utmost importance that property owners know how to select and interview the property management company that best seems to specialize in the kind of investment that they are looking to have managed.

If you are unsure what to ask your potential property manager before you sign a long term agreement with them, here are some questions that you can use as a guideline.

1. What kind of property management experience do you have? You need to know for how long they have managed property and whether they have enough back up from the rest of their group.

2. How many properties do you currently manage? Hiring a property manager that handles several thousand units could be somewhat risky as your property might end up lost in an ocean of other properties.

3. How often do you inspect occupied and vacant units? It is important to know the frequency of inspections in occupied units. The reasons why you need to know this information is because you need to be assured that there will be a comprehensive assessment of potential damage to occupied units that has been caused by tenants. You also need to know the frequency of inspection though vacant units to prevent any potential risk of fire or other casualties. Trust me, I have seen fires occur in vacant units.

4. What do you do with the information obtained from unit inspections? This is particularly important to ask because you need to make sure that the property management company has policies in place regarding the payment of damages to units caused by tenants or their guest. It would be of no benefit at all if they just report to you that all units were inspected, if they do not not have an aggressive plan of action based on unit inspections.

5. How important is preventative maintenance to you and how is this handled by your company? Extensive and costly deterioration can occur to properties if there isn’t a preventative maintenance plan in place. Your property manager should keep a preventative maintenance log showing all items inspected and addressed as well as the signature of the maintenance supervisor acknowledging completion of all required tasks.

6. How do you handle ongoing/daily maintenance? You need to know whether one or more dedicated maintenance technicians will be assigned to your property (based on the size of the property and number of units). It is also important to know the level of engagement of the maintenance supervisor (if any) and his role in ensuring that all maintenance issues are being addressed.

7. After hours emergency handling. Have the property manager explain their process for handling after hours emergencies such as water leaks, fire or any other casualties. Ask whether there is an after hours phone number which tenants would have access to.

8. Tenant Selection Plan. You need to know if the property manager has a Tenant Selection Plan that can be customized for your property. The TSP will help define the requirements that potential tenants would have to fulfill prior to renting a unit to them. You might also be want to be involved in the development of the rental criteria to ensure that only applicant who meet your requirements are approved. Keep in mind that you as well as your property manager are required to observe and conduct business based on Fair Housing Law. Your property manager should be absolutely familiar with what terms to use and which ones avoid when advertising your vacant units and when interviewing applicants.

9. Transparency. How can I have access to review accounts payables, delinquency reports, collections, etc. You as the property owner should define the frequency and types of reports that your property manager should make available to you.

10. Property Market Analysis. Does your management team shop comparable properties to keep up to date with local occupancy rates, average rent rates, amenities offered, specials, etc.? Please be aware that not all property management companies provide this service.

11. What is your area of specialty? It is important to keep in mind that there are several specialties within the property management industry. If you own commercial property, you should probably stay away from property managers that have experience managing only multifamily or condo properties. The most common areas of specialty in property management are: Single Family, Multifamily, Condo Associations, Cooperatives, Retail, Medical, Commercial and Industrial.

Management companies that specialize in the management of distressed and difficult-to-manage properties are usually capable of handling a broader spectrum of assets and engagement types, such as REO, Receiverships, and disputed assets.

Retaining the right property manager can enhance the value of your investment property while making your life easier as you don’t have to deal with the headaches that this activity often represents. If you have plans to expand your real estate investment portfolio it is definitely worth having a strong property management company on your side.

Triton IRES is a full service Property Management company specialized in turning around highly challenged property and sites that are difficult to manage by traditional management approach.

Our experienced real estate advisors act quickly when stabilizing an underperforming property. We identify critical issues and develop a list of priorities that must be addressed immediately. These actions halt the downward performance trend and protect the underlying value of the property.

The Best Property Management Is Free

There are many property management companies in the marketplace today. All companies have their own charges and fees that you must incur to contract their services. The truth is that the only management companies that you should hire with are the companies that are FREE.

I know everyone believes there is nothing that is “free” and this is true in general but not from every perspective. When I refer to Free property management, I am talking about a company that provides added value to the properties that it handles. A value that would be unlikely to be reached by the owner managing the property themselves. Let’s examine the value of good real estate management. Value can be expressed in many terms such as equity, lower turnover, higher rents, lower maintenance costs and most importantly, time. Time is the most important asset that exists. Simply put if you had all the money or goods in the world but you had no time to enjoy them, you don’t have much.

Many property owners have full time jobs, family obligations, and little time to manage the property they own to maximum efficiency. Some of these owners work long hours in an attempt to “save” money by not hiring a property manager. After we examine this practice we will see that in most cases the property owner is actually losing money, and more importantly losing time.

The old saying “Time is money” will be a cornerstone of our analysis. Let’s say the property owner in our example is an employee at XYZ Corp and is paid $20 an hour. A general price for property management is somewhere around 10% of collected rent. So we will pretend this owner owns a two family rental property and each unit rents for $700. That means the fee for professional management of this property will be in the area of $140 a month (10% of 700= $70 per unit, times 2 = $140). That equals 7 hours of income for the owner. So if managing this property takes more time than 7 hours a month, or the management of the property interferes with the work of the owner than the owner would actually be better off with a professional property manager.

The time analysis shows that there is not a lot of money to be saved by managing the property yourself, especially if you could use your time towards work you are paid for. However, the time analysis does not show the complete benefits of property management. If managing property was easy and predictable there would be no property management companies. We all know that real estate repairs can pop up seemingly out of nowhere and late tenants can turn into evictions at any time. The main cost occurs during these times, when you need to evict tenants, repair the property, advertise and attract new tenants, and lease the unit to get rental income again. These are the times when property owners with other obligations really lose time and money. You see if a property owner is unable to manage the issues efficiently and loses just one month of rental income, they would have lost enough money to pay for close to a full year of professional property management in many cases!

Good property management will allow you more time to create income or spend time with family and friends. More time is a good enough reason to hire a property manager but that is not the end of the benefits. In addition efficient management will be able to pass savings on to the owner for routine repairs and maintenance through network contractors and vendors. They will be able to make smooth transitions from vacancies to new qualified tenants and maximize Cashflow. So I will conclude by urging property owners with other obligations to strongly consider professional management, because sometimes the cost of trying to save money is just too high.

Commercial Property Managers – How to Get a Landlord to Commit to You

In business and retail property administration, you will go over a few proprietors that are very hard to work with. After some time the relationship between the property chief and the proprietor can turn out to be very unpleasant (even poisonous) and effect the procedures on the property.

In the long run the proprietor will get to be displeased and unsatisfied. In such case, they will soon move their portfolio to another land administration organization. They could even rehash the procedure again a couple times!

From the very begin of a property administration arrangement it is vital that the relationship between the director and the landowner be sustained and supported. Basically the chief needs to comprehend the requirements of the landowner, and give the fundamental arrangements timelily. That being said, it is hard for a landowner to regard a property chief that is inadequate with regards to the aptitudes or the learning required to do the undertaking effectively.

Don’t imagine it any other way, the aptitudes and the information required here is specific, and just the best property supervisors ought to be utilized for the errand. By and large, the pay rates of business and retail directors are more critical than private chiefs. That is a reflection on the required information, aptitude, and work information required.

At the highest point of the scale, mall directors and the most generously compensated in the business; in any case they work truly hard for it. Overseeing, showcasing, and renting a mall are difficult procedures.

In the event that another or junior property director is utilized in your organization, it is key that they be given the backing of an accomplished and gifted senior property administrator for a long while.

There are numerous things for the new junior chief to learn including yet not restricted to the accompanying:

Lease organization and lease usage – The translation of the lease record can be entirely testing assignment and requires sensible insight with respect to the property supervisor with regards to comprehension lawful documentation and property administration circumstances. Lease organization additionally requires unique aptitudes with regards to inhabitant blend administration, occupant examination, and opportunity administration. The wage for every property under administration ought to be enhanced for the arrangements of the proprietor and the predominant economic situations.

Inhabitant administration frameworks and procedures should be actualized. Nearly inhabitants can be to a great degree testing and require a considerable measure of continuous every day administration. This is exceptionally normal with regards to the administration of retail property. In the event that you have a mall with numerous inhabitants, the occupant administration prerequisites will be high. Inhabitant administration procedures ought to fuse great business system and tender loving care. Numerous differences can happen as a component of the everyday property administration action in any speculation property.. The notes of occupant discourses and discussions that you have once a day will dependably be basic to future confirmation prerequisites. Ensure yourself and your discussions through the support of good records. Take a lot of notes. The sorted out in your business forms.

The reporting and control necessities for every last landowner will vary. This implies the property director should comprehend what every proprietor anticipates that when it comes will wage, consumption, upkeep, reports, occupant blend, and opening administration. Some of these elements will have confinements and endorsement prerequisites to be alluded to the proprietor.

Budgetary exercises inside the property will change impressively over the classes of wage and consumption. Streamlining pay and overseeing consumption is all a player in the every day procedure with regards to property execution and property improvement. Money related administration is sensibly direct with regards to a solitary occupant in a solitary property. Giving you comprehend the terms of the lease, the wage and consumption planning procedure can be effortlessly embraced for your customer as the proprietor. It is the place you chip away at complex properties with numerous inhabitants that the issue gets to be much all the more difficult. In such case, you have to take a gander at the changes of salary and use over the whole year, including every one of the tenures, and the mind boggling property utilization. Scrupulousness is required.

Considering these things, they are the three essential classifications of control with regards to business and retail property administration.

When these exercises are effectively actualized and controlled, the admiration of the landowner is anything but difficult to accomplish and keep up. Most proprietors simply need to realize that their portfolio and property are effectively overseen inside their desires and venture arrangement. That is the reason they call it an organization administration.

Investing and Property Management

I have had lots of people over the years ask me, in my opinion, what is the most important thing about investing in real estate? Everybody always assumes its price, location or timing the market correctly. After over 1300 real estate transactions primarily to investors worldwide, I can say without a doubt that property management is the single most important piece of the investing puzzle. In real estate, you can make a mistake on price, pick an iffy neighborhood, or hire a bad contractor and still be profitable. Hire the wrong property manager and you can lose your shirt overnight! Don’t get me wrong, location, price and rehab are huge factors in real estate investing and are very important. With the right property management company in place though you can make a mistake or experience a down turn in a market or neighborhood and still realize a good return on your investment through positive cash flow. A good property manager protects your investment in the long-term.

Obviously, the next question is “how do I find a good property manager”? Here are several tips on picking a good management company. This does not necessarily mean you; someone else will be managing your property.

Get a referral. Typically, when you invest, there are people in your peer group or circle of influence that are investing in the same market you are or know of someone who is also investing in that market. Ask them who they are using, who they used to use, and why they switched. Find out what they like about their management company but more importantly find out what they don’t like about them. The management company may do a great job of placing tenants but are lacking in the communication department; without communication, you’re sunk! Access to your management company is very important for the investor’s peace of mind. There is nothing worse than leaving a message or sending a couple of emails and all you hear are crickets in the background. At first, you assume they are busy and will get to you soon. After a while, though, investors start wondering why no one is responding and that’s when panic sets in. Did the tenant leave? Did the management company run off with my money? DID MY HOUSE BURN DOWN? Generally, none of the above is true but a good property manager will respond within 24 hours of your inquiry.

Ask the management company that you are considering doing business with for references. Ideally, I believe you want 5 to 10 references from previous clients as well as current clients that have been using the management company longer than 1 year. If they are not willing to provide you with any past clients, pass on them. When you get the references, CALL THEM. Ask them the same questions about what they like and don’t like.

Get a list of policies and procedures from the management company. You need to know how they handle marketing of the properties for tenants, late payments, evictions, maintenance calls, inspections, accounting, owner disbursements, etc. A good management company will have this information readily available.

Find out if the management company is licensed in the state you are investing in. Most states require that the property manager is a licensed real estate broker and are held accountable to their state real estate board. There are many “property managers” out there that are not, but have taken this opportunity to increase their income while investing is hot. Though they may be cheaper, DO NOT USE AN UNLICENSED MANAGEMENT COMPANY! You will have no recourse to police them.

Find out what software program the management company uses. There are a few good property management software programs that are web-based such as Buildium and PropertyWare that give the property owner a portal login so you can access your account via the web 24 hours a day. A good property management company will log all tenant calls, maintenance concerns, payments, late notices etc., into the software program. This is beneficial to both parties as a majority of an investor’s questions or concerns can be addressed by logging into the software program and looking at the info at hand there. This eliminates a lot of phone calls between the property manager and the owner. It also helps the owner to narrow down questions or concerns by addressing specific information found in their portal.

The reason for investing is to get paid. You need to know when the money comes in, where it’s at, what your expenses are, and when you get your payments. Most management companies reconcile accounts 1 month in arrears. Rents collected in 1 month are disbursed the following month for the simple fact that not all expenses come in time to get an accurate accounting to disburse rent proceeds in the same month. Each management company is different but should be able to tell you to the day when to expect payments on a monthly basis. You also need to know when to expect the quarterly or annual accounting needed for your tax man. Again, a good software program makes this much easier for the management company to keep track of and share with you.

To me, the fees that a management company charges are important but not as important as the previous items in this list. I have seen it over and over again where somebody picks one management company over another based solely upon fees. 3-6 months later after dealing with terrible tenants, bad accounting practices and more, the few hundred bucks they saved cost them literally thousands of dollars. Here is a brief run down on the fees you can expect to pay.

Monthly Management fee: usually 7-10% of collected rents depending on the market you are investing in. Higher rental amounts usually equate to lower monthly fee percentages and lower rents are higher percentages. A few companies will have a set monthly fee of somewhere between $50-$100 dollars per month.

Leasing Fee: usually 50-100% of the 1st month’s rent; again depending on average rent amounts. Most property management companies employ commissioned leasing agents that are usually paid a percentage of this fee up to 50%.

Set up Fee: this is charged for the time it takes to set up the new accounts, generate bank accounts etc., usually around $100 dollars.

Vacancy Fee: some management companies will charge a flat fee per month on a vacant unit. Their reasoning is that a vacant unit still requires someone to keep tabs on that property usually on a 1-2 week cycle to verify that the property is secure, yard is in good order, rental signs are in place and visible etc. I have found that only about 50% of property management companies charge for this service. Unfortunately, I have also found that half of the ones who don’t charge for this are not checking the properties periodically and sometimes a small issue turns into a bigger more expensive issue down the road.

Advertising Fees: most good property managers do not charge extra for the marketing of the vacant units to potential renters as they are paid when the properties become occupied and the advertising expense is covered by the leasing fee. Some property managers will give you the option of extra paid advertising if you have a property that is tougher to rent than usual.

Maintenance Fees: most management companies use maintenance as a profit center; some more than others! Due to the volume that some management companies do they are able to procure vendors at a much lower rate than what you could get on your own thereby allowing them to make a profit on certain maintenance items. Yard mowings are a great example of this. A large management company may be mowing 100 yards a season and can negotiate a volume deal at $15-$20 per yard to them. They, in return, “sell” this service to you at the market rate of $25-$30 per mowing. It is still a good deal for you as you are hands off and would expect to pay the same price if you were only contracting to have 1-2 yards mowed. On the other hand, some management companies go to excess on other maintenance issues such as repairs after a tenant has moved out. Typically, the security deposit should cover most items necessary to make a property re-rentable unless a bad tenant was placed and they have trashed your property. Some management companies use this as a way to increase their profits by over charging for these repairs. I recommend having a 3rd party inspect and/or bid any repairs that seem excessive to you.