Next is, Asking the right questions when hiring a Management Company

Asking the right questions when hiring a Management Company

Addressing these questions with owners and board members helps them to understand what a manager does, and how important it is to take the time to find the right company that will care for the properties like they would.

Questions to ask so you can learn more about Property Management company services they will provide, benefits, services, how they collect fees, how repairs are addressed, Vacancies, Rent Collection and the Laws & Licensing.

Then find out how our members can do to help you with the management of your buildings?

Managing properties can quickly become overwhelming, even for experienced investors. There is always something going on that requires attention and it takes very little time for things to get out of hand.  Hiring a Property Manager can provide an opportunity to regain control and restore stability to both your properties and possibly life in general.

The importance of having income real estate to you and your family? We are here to help you with the selection process for hiring the right company for the management of your buildings. Your Property Manager will make critical decisions on your behalf making it extremely important that you do your homework during the hiring process, your decision to hire or not hire a management company should hinge on whether or not it is a good fit with your lifestyle and makes sense financially. Individual investors will have to assess the opportunity cost of both options based on their unique circumstances.

Benefits of hiring a Property Management Company

A competent manager can add significant value to your investment, which is why many seasoned real estate investors will tell you that a good management company is worth their weight in gold. Here are a few ways that a good property manager earns their keep

Getting Better Tenants

Think of tenant screening as the moat and draw bridge around your castle. It is certainly possible to get a bad tenant out of your home once they are in, but it’s a real hassle and you are so much better off never accepting them in the first place. a thorough screening process results in reliable tenants that:

• Pay on time
• Rent longer
• Put less wear and tear on the unit
• Generally cause less problems

An experienced management company has seen thousands of applications and knows how to quickly dig for the real facts about candidates and analyze that information for warning signs. By allowing a management company to handle the screening, you will also be shielding yourself from rental scams directed at owners, and discrimination lawsuits resulting from an inconsistent screening process. This kind of experience takes time, and insomuch as it means avoiding bad tenants, scams and lawsuits it is arguably one of the most significant benefits a property management company will provide.

Veteran landlords & managers know it only takes one troublesome tenant to cause significant legal and financial headaches. A good property manager is armed with the knowledge of the latest landlord-tenant laws and will ensure that you are not leaving yourself vulnerable to a potential law suit. Each state and municipality have their own laws, these plus federal law cover a number of areas including but not limited to:

• Tenant screening
• Safety and property conditions of the property
• Evictions
• Inspections
• Lease addendums
• Terminating leases
• Handling security deposits
• Rent collection

Lower Vacancy & Better Tenants

A Manager will help you perform three critical tasks that affect how long it takes to fill your vacancies:

• Improve and prepare the property for rent – A Property Manager will suggest and oversee cosmetic improvements that maximize revenue.
• Determine the best rent rate – Too high and you are stuck waiting, to low and you’re losing money every month the tenant is in the unit. Determining the optimal price requires knowledge of the local market, data on recently sold comparables, and access to rental rate tools.

Effectively market your property – An experienced Property Management company has written hundreds of ads and understands what to say and where advertise in order to get a larger pool of candidates in a shorter period of time. Additionally because of their volume they can usually negotiate cheaper advertising rates both online and offline. Lastly, they are familiar with sales and know how to close when they field calls from prospects and take them on showings.

While its easy to see the effects of lost rent, there are other equally serious problems with a high tenant turnover rate. The turnover process involves a thorough cleaning, changing the locks, painting the walls and possibly new carpet or small repairs, not to mention all the effort associated with marketing, showing , screening and settling in a new tenant. This is a time-consuming and expensive process that can often be averted by keeping tenants happy and well cared for.

A good management company will have a time-tested tenant retention policy that ensures happy tenants with lengthy stays in your properties. These kinds of programs require a consistent, systematic approach, which is where a good Property Management company will shine.

Rent Collection Process

The way you handle rent collection and late payments can be the difference between success and failure as a landlord. Collecting rent on time every month is the only way to maintain consistent cash-flow, and your tenants need to understand this is not negotiable. By hiring a property manager, you put a buffer between yourself and the tenant, and allow them to be the bad guy who has to listen to excuses, chase down rent, and when necessary, evict the person living in your property.

If you let them, your tenants will walk all over you. They have to be trained to follow every part of the lease or deal with the consequences. Property managers have an advantage because tenants realize that they, unlike the owner, are only doing their job and are obligated to enforce the lease terms. Many Managers will tell you that it is considerably easier to manage other people’s units rather than their own for this reason.

Regarding evictions, there are strict laws concerning the eviction process, and doing it wrong, or trying to evict a “professional tenant” can be a major fiasco. A good property management firm knows the law and has a good process for obtaining the best possible outcome given the circumstances. Never having to handle another eviction can be a compelling reason to consider hiring a property management company.

State of Florida Property Management Association has a partnering member www.NationalEvictions.com they can help all landlords with the information needed to understand the Florida eviction process, all members, real estate professionals & building owners can get the required forms for a Florida eviction and help with hiring a lawyer to help with an eviction.

Maintenance and Repair Costs

Good maintenance and repairs keep tenants happy and preserve the value of your investment which make them a very important part of land-lording. By hiring a management firm you gain access to both their in-house maintenance staff, as well as their network of licensed, bonded and insured contractors who have already been vetted for good pricing and quality work. This can translate into significant savings compared to going through the yellow pages and hiring a handyman yourself.

*State of Florida Property Management Association has our own Member Directory these members directly aid our Management members giving them cost savings for any work needed in the buildings they manage. This savings means savings for the building owners.

Increased inspections means happier tenants, It aids in the value of your investment

Preventative maintenance is achieved through putting systems in place that catch and deal with maintenance and repair issues early on, before they grow into larger more costly problems. This requires a written maintenance check program, detailed maintenance documentation and regular maintenance visits. The management firm can also offer you suggestions and feedback on upgrades and modifications, both how they will affect the rent you can charge, as well as their impact on maintenance and insurance.