You may have considered property investment as a way to add a passive income. While owning a rental property comes with amazing benefits, we don’t disregard the fact the extra responsibilities of being a landlord.
If you purchase a rental property in a different state, or you have an existing full-time job you may find it quite difficult to adequately manage it yourself.
This is why you’ll need to hire a trustworthy property manager who can make sure your property remains in great condition and all the other important details needed to make your property investment a success.
Whether you go with a local property manager in Houston or a property management company, continue reading for our tips on how to find the perfect property manager. We also hope that this article can answer your question – Should you hire a property manager or do it yourself?
What is a Property Manager?
A property manager is a person hired by a property owner or a real estate investor to oversee the day-to-day operations of a unit of real estate – residential or commercial. Property managers can act on behalf of the owner to preserve the value of the property while generating income. Essentially, they are hired to take the hassle out of everything and all the details in between, especially saving the property owner’s time and easing the stress that can come with self-managing your Houston property.
You can hire a property manager to do one or more of these main responsibilities:
- Market and advertise the property for rent.
- Determine the most profitable and competitive rent to charge.
- Screen tenant applicants comprehensively.
- Prepare a tenancy agreement.
- Protect you from lawsuits.
- Provide important tax filing documents.
- Manage financial accounts for the investment property and provide regular reports
- Collect rent and manage property payments
- Carry out routine inspections and / or handle emergency repairs.
- Issue termination notices to difficult tenants
Do you Really Need a Property Manager?
The idea of letting another person or a company manage your rental investment can be difficult. You may think hiring a property manager is just an added cost. On the other hand, investing in rental or commercial properties comes with a ton of work.
There is nothing wrong with choosing to manage your own rental property yourself, especially if you have the time and expertise. But if you don’t have the time and expertise to do so, you might find it advantageous to hire a property manager.
So If you’ve been thinking about hiring a rental property manager, but are quite unsure if it’s the right decision for you then consider asking yourself the following questions:
5 Questions to Ask Yourself before Hiring a Rental Property Manager
- Do I have the time to find a tenant, run background checks and show the property?
- How much experience do I have in managing rental properties?
- Do I have the time to manage my property – collect rent, deal with tenants, maintenance and repairs?
- Am I willing to give up control?
- Am I familiar with the legal requirements of rental property?
5 Ways a Property Manager can Add Value to your rental property
- Find the best tenants
- Set the right market rent
- Address day-to-day demands & maintenance issues.
- Put your property financial records in order.
- Comply with tenant rights and landlord-tenant laws.
How to Select the Best Property Manager?
1. Know your needs first
Decide the level of involvement that you want from a property manager. To do this, you need to check the key responsibilities of a property manager and decide which among these property-related tasks you’re ready to hand over to a person or company. As mentioned above, these specific tasks are the usual services that a property manager or property management company offers to their potential clients – marketing, and screening tenants, finding tenants, setting and handling rent, rent collection, handling tenant issues including maintenance requests, managing finances, and records, or all of these.
2. Check online and offline
Narrow down prospective property management companies in your area or where your property is located. As you do your search online and local ads, don’t forget to check the following – property management services, fees, staff, client testimonials, tenant reviews, and contact information. Aside from checking online rental ads, check your local newspapers, and observe the presence of the following – professional quality photos, enough details in the ad, accurate description, no errors, and availability of virtual tours just to name a few.
3. Get referrals
If you know a real estate agent, ask whether they know any good property managers or local property management companies. You may also ask your friends with property investments in the same area for a referral. Another option is to check the state’s Real Estate Commission and the Better Business Bureau to make sure your prospective property manager is licensed and has no complaints against them. Once you have a shortlist of people you’re considering, set the date for the interview.
4. Interview Multiple Candidates
Meet each property manager in person if possible. An interview is an ideal setting to know if you can trust the property manager with your rental investment this person.
Essential questions to ask a prospective property manager:
- How long have you managed investment properties?
- How many properties do you currently manage and how many this year?
- How many properties are allocated to each manager?
- What types of rental properties do you manage?
- Do you personally own investment property?
- How long has your average client been with you?
- Are you a licensed real estate agent?
- What professional organizations are you a member of?
- Are you familiar with the area in which I am investing?
- What is your marketing strategy to locate prospective tenants?
- How do you qualify prospective applicants/tenants?
- What is the average length of time it takes to lease a vacant property?
- How do you determine the fair market rent?
- What is your procedure for late payments?
- Can you describe a recent situation with a difficult tenant and how the matter was resolved?
- How do you handle eviction?
- Who takes care of routine maintenance requests?
- How do you handle maintenance issues?
- What types of reports do you provide and how are they received?
- What is your fee structure?
- Are there extra charges in addition to the monthly management fee?
- What differentiates your services to other Pm companies?
- What do you need from me for my rental property to successfully thrive?
Choosing the perfect propery manager
There is no perfect person or company, but choosing the right property manager that you can trust with your investment property is essential to your investment’s success. While finding the perfect property manager is not an easy task, devoting an extra effort at the beginning of your search will save you from headaches later on.
Doing your due diligence is the key because doing so will allow you to find the perfect property manager who can reward you with a worry-free investment.
Summary: How to know if the property manager is right for you?
- Verify professional licenses and certifications
- Check reviews and references
- Look for a Proven Track Record or specialized experience.
- Make sure they have the appropriate insurance
- Examine the property management agreement
We hope the steps and tips above will help you narrow down your search to finding the right one that perfectly matches you and your property’s needs. We are confident that doing your homework will help decide who will be your partner in managing your rental properties.
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Work with Apogee Properties
Apogee Properties is Houston’s Premier Property Management Company. We work and live in Houston and our property managers are local. We’ve been in business for more than a decade providing comprehensive property management services in the Houston region ranging from a studio condo to a multi-family million dollar estate. Contact us to learn more about our property management services, and what we can do for you and your rental property.
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