If you under the impression that being a landlord means you have to learn how to do everything on your own (making repairs, performing inspections, accounting), then luckily, you are mistaken. An entire business of people re dedicated to doing all the leg work for you — property managers.
As the owner of ASM Properties, a property management company that oversees dozens of rentals, Jon Selinger knows just how beneficial the right property manager can be for landlords, especially, he says, if you have multiple properties or live out of state. The key, Selinger says, is finding a strong property management company who you can place your trust in. Here, he describes what you should be looking for:
Background: Every state is different with regards to the education background that property managers must have. But, says Selinger, it never hurts to ask your particular manager about his education and determine for yourself if you feel that his schooling will be helpful in his current career. For example, Selinger has a background in business administration and finance, while other property managers might also have a background in real estate.
Licensing: Prior to meeting with any property management companies, research the laws in your state to determine if property managers are legally required to hold a license. In Tennessee, Selinger explains, every property manager must be a licensed broker. In other states, he says, you must be a licensed real estate broker.
Experience: As with any business, you want someone with the right amount of experience. As you probably know, you can only be taught so much; the rest of your learning comes from experience and hands-on problem solving. Think of your meeting with a property manager as being similar to a job interview. Find out how many properties they typically manage, how they screen tenants, and how often they get in touch with their clients. Constant communication, says Selinger, is key to creating a successful and profitable relationship between you and your property manager.
Accreditation: While Selinger points to experience as being crucial component, he also recommends hiring a property manager with numerous accreditations. There are a number of classifications of property managers and several certifications that every property manager could achieve that further distinguish them from others in the field. Most of this information could probably be discovered from simply looking at the company’s website, though you may want to bring it up in your initial conversations as well.
Dedication: Selinger also strongly recommends choosing a property manager who has made the career his only profession. Many times, he says, managing properties is something that people do as a side job in addition to their regular nine to five one. If this is the case, then you can guarantee that your business is not his first priority.
It’s important that you are confident in your choice and that you never have to second guess if your home is being properly taken care of. Following Selinger’s advice will lead you right to your ideal property manager.
