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Property management- A Key factor

The most underestimated area investors tend to overlook when purchasing real estate investments is Property Management. Being 20 years in the industry, this is a recurring problem with many new investors. They think they could better manage their investment properties. They don’t see the long term money and headache they would save by hiring a property manager. Here are the top 10 questions you should ask yourself before you bail on hiring a property manager:

  1. Do you have time to answer maintenance calls and concerns regarding the property at all hours of the day?

  • A Property Manager is responsible for maintenance and repairs at all hours of the day. They have a team of vendors that they send out to your properties to attend to any service call by your tenant.

  • A happy tenant will renew their lease and help you avoid any potential litigation issues.

  1. Do you know all the Landlord-Tenant Laws to avoid being sued by your tenant?

  • A property manager is well versed in Landlord-Tenant laws. Property Management companies consult with a Real Estate Attorney to ensure there lease agreements in compliance with Federal and State Laws/

  • Being in compliance will ensure that the property owner is covered to avoid litigation.

  1. Do you know all what is needed to make your property tenant ready?

  • Property Managers know how to appropriately walk through properties before and after purchasing an investment.

  • They make sure make sure that the home is in a good living condition and that the home is tenant-ready according to the law.

  1. Do you have access to tools to assist you with advertising and screening new tenants?

  • Property Managers are real-estate agents. They have access to the Multiple Listing Service (MLS) to post your property to attract new tenants. This means less time your property will be on the market.

  • They also have access to comparables in the area to make sure you are leasing your property according to market value.

  • They perform thorough criminal background check, credit check, and reference check to ensure you have a qualified tenant. A qualified tenant is more likely to pay their rent on time and take care of your property.

  1. Do you want to be a landlord or an investor?

  • A property manager will allow you to be an investor because you will not have any direct contact with the tenant. Yes tenants can ask for absurd things especially if they know you own the property.

  • A property manager will negotiate the terms of the lease for you with any tenant.

  • They collect the rents and also go through the eviction process for any untimely rents paid.

  • A property manager will visit your property 2-4 times a year to make sure that the property is well maintained and kept by your tenants.

  • A full service property manager should pay all the property owner bills and expenses on behalf of the property owners including property taxes, insurance and HOA (Home Owners Association).

  • A property manager provides property the investor with a monthly report of all expenses and income including a direct deposit of the net income. This is important for tax purposes.

  1. Do you know that having a Property Manager is a tax benefit?

  • Yes you can deduct as an expense all property management services.

  • In addition, the property manager provides you with an annual report of all income, expenses, and property management payments for your property. No one likes the hassle of looking for all the receipts during tax season.

So after answering these questions, do you want to bail on Property Management Services?

If you answered no, then click on this link and we will show you how to become a Real Estate Investor not a landlord with all of the right tools and people.

Stay tuned to our next blog: “How to find the right property management?”

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