How to Work With a Property Manager or Management Company
If you own rental property, even if it's just one rental house or a duplex, you want to seriously consider hiring a property manager or management company, such as Verse Property Group. This can free up your time to handle other areas of your rental business and ensure that your property is being managed legally; a manager or management company will be abreast of laws that affect real estate as well as local building and safety codes. Note a few things to consider when working with any such manager or management company.
1. Being paid by percentages
A property manager may charge by the amount of rent he or she collects each month. When working on this type of arrangement, be sure that it's according to the rent collected, not just the rent due. A good manager will need to be motivated to ensure that rent is collected in a timely manner and should be following up on past due rent quickly. If you pay them based on rent owed and not what they've collected, this can be much less incentive for them to keep up with collections.
2. Occupancy expectations
When you own a single house, you may want to note in your contract with a management company the set number of months you expect it to remain vacant before they face penalties. This will ensure they are doing everything they can to keep tenants in your home. The same might be applied to apartment complexes and properties like strip malls. There should be an occupancy percentage expectation so you know that the management company is working to keep tenants in and bring in new tenants for vacant units as quickly as possible.
3. Expense approval
A property manager shouldn't need your approval for every small expense or regular invoice; you will no doubt expect them to simply pay the landscaper, maintenance persons, and so on as their invoices or paychecks are due. However, you do need to agree on what expenses will need your approval, whether it's for unexpected or irregular items or for anything past a certain amount of money. While the property manager may need your approval for these expenses, you also need to be available to approve them so that nothing is held up; if they need to purchase extra bags of rock salt for when it's snowing outside or get an emergency plumber to the property right away, they need your approval for the expense immediately.