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HIRING A Real Estate MANAGEMENT COMPANY

 

There are several things you need to look for in a real estate management company. First, of course, are they licensed and insured as required and do they handle residential real estate? Can they supply references? Do they have the staff needed? Yes, you may only have a unit or two, but if the company is really understaffed will your real estate be given the time, services, etc that you expect. Who will handle your units? How do you feel they deal with people? They should at all times be professional with everyone - rather they are a prospect for one of your units, or moving out, or perhaps a difficult tenant. (You don't want to lose tenants because of the management company staff). Besides, handling the items we've discussed, what else do they offer?

Managing real estate Investments

Who does the repairs, painting, cleaning, etc.? Do they have their own staff - how much do they charge? Do they use outside contractors? If so, do they shop for the best cost to you? Do they get a kickback, rebate or anything else from these contractors? Will you receive copies of actual invoices from the contractors - or does the management company charge a percentage over the invoice?

You will have to sign an agreement. If you aren't satisfied - how soon can you void the agreement. (10 days notice, 2 weeks, 30 days). First, read it carefully - you may want a lawyer to look it over. You must be protected - its' your real estate, your funds - plus you don't need a lawsuit because the management company didn't do their job.

Meet with their representative , look around at their office, location. Discuss what you are looking for and what they provide. Discuss costs. Costs will vary depending on where you are plus what you want and the size of the real estate, etc. Expect to pay 5 - 10% of rental income per month plus anywhere from 50 - 100% of first month's rent when a unit is rented by them. How much control are you going to have - perhaps you want the final say on who moves in - be notified before repairs are made, etc.? How often do you get reports? Are their people, workers, contractors covered under their insurance? Does the agreement state they are responsible for following all laws in regards to safety, discrimination, habitability, etc.?

Remember, the management company works for you. As their client, they shall act in your best interest at all times.

If you feel comfortable with this company - the agreement spells out everything then you are probably ready to hire them. Be sure you have a copy of the signed agreement.

Find A Good Management Company

Who does the repairs, painting, cleaning, etc.? Do they have their own staff - how much do they charge? Do they use outside contractors? If so, do they shop for the best cost to you? Do they get a kickback, rebate or anything else from these contractors?.

Page uses these keywords: real estate, rental management

Reference: HIRING A Real Estate MANAGEMENT COMPANY

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