Property managers have the responsibility of leasing your property, collecting the monthly rent, managing the tenants as well as overseeing the maintenance on your property. Your area may have several rental management companies for you to choose from, but it is important to take your time in finding the one that meets your needs.
The amount that you would like to pay a property manager is up to you, but a good starting point is about 5% of the gross rents and may go up to a maximum of 10%. However, be aware that some property managers may charge you a set up fee as well as for advertising a vacant unit. When you start interviewing different rental management companies, you need to make sure that you understand what their rates include. For instance, that 5% may only include their basic fee. However, if they have to do extra things such as checking references, or arranging for repairs they may charge you by the hour for these services. Another company might charge you 7% but that will include all services.
It is important for you to understand that all rental management companies’ expenses that you incur are tax deductible and this includes repairs and maintenance as well. As the landlord, your mortgage interest is also tax deductible as well as your property taxes and insurance. Property inspections are also deductible as a business expense.
You want to contact several companies to set up interviews. You may want to think about meeting in the company’s office so you can see how the workers go about their day-to-day business. You want to have a list of questions handy. It is important to inquire about the rental managers past experience, any difficult tenant problems they have handled as well as the company’s policy for dealing with repairs. You want to pay attention to how the manager answers your questions and request a list of references prior to ending the interview.
Contact several of the references that the property manager provided you with. Inquire about the property managers’ professionalism, dependability, work ethic and trustworthiness. A property manager that handles their personal finances correctly is more likely to deal with your rental income in the same manner. Do a background check to find out if the manager has a criminal history or any lawsuits that have been filed against them.
Once you have done all of the necessary checks, you can then make an offer to the company that best fits your needs. It is important to understand that you might have to negotiate several different things including salary and detailed management responsibilities. Once you have agreed to everything, you need to contact an attorney to finalize the contract. You and your new property manager both need to sign and date the contract. You should contact the other companies that you previously interviewed to let them know you have chosen someone else for the position.
Source: Free Articles from ArticlesFactory.com
Read More at Property Intensive Seminar