Archives July 2022

5 Expert Tips on How to Choose an Excellent Property Manager

Your rental property is an asset that needs to be professionally managed and managed pro-actively in order to be properly protected. Unless, of course, she’s a real portfolio manager, you wouldn’t allow your neighbor’s acquaintance handle your stock account. Similar to this, your property needs a certified, knowledgeable, and accountable investment property manager.

Being a first-time landlord, selecting the ideal investment property manager might be a daunting undertaking. What credentials should you be seeking? How do you distinguish between poor managers of investment properties and those that will look out for your money like it was their own?

By thoroughly screening each of our property managers before designating them as one of our preferred partners, we at Luxia take a lot of the guesswork out of the equation for you. We’ll connect you with a nearby, recommended investment property manager and keep advocating for you to make sure everything goes as planned.

Here are five key ways to tell if an investment property manager is right for you, plus helpful questions to ask:

1. Look for specialized experience

The industry of property management is complicated. An investment property manager who is knowledgeable about current local, state, and federal laws is what you desire. Additionally, you want someone who has a track record of successfully managing the numerous challenges that come with managing renters and properties.

Find a property management company that has a lot of experience with the type of investment you have. Businesses that specialise in managing commercial properties, for instance, might not be prepared to handle residential properties effectively.

2. Verify professional licenses and certifications

A real estate licence may be all that is needed to manage a property in some places, and some states don’t require any kind of licence at all. Proper licensure and professional certificates should be able to support the technical skills of competent property managers and management businesses. To find out if a property manager has a valid real estate broker’s licence, contact the real estate commission in your state. Any certificates and professional affiliations are advantageous.

3. Check reviews and references

Nowadays, it almost goes without saying, but check out a property management company’s Yelp, Google, and Facebook ratings before scheduling a meeting with them. As is always the case with these websites, keep in mind that some reviews (such as an evicted renter) can have a vendetta that has nothing to do with the calibre of the service performed by the business. However, when comparing several businesses, review websites might be an excellent first resource.

It’s also a good idea to look up any complaints or glowing recommendations with more established sources, such the Better Business Bureau and Chamber of Commerce.

4. Examine the property management agreement

The property management agreement defines the working relationship between you and the property manager as well as the duties and obligations of the management team. Given the importance of the contract, it is your responsibility to thoroughly study it and make any required changes before agreeing to it. Verify that it has what you are looking for and that there are no unfavourable provisions.

5. Make sure they have the appropriate insurance

When we inspect the general liability, property casualty, and errors and omissions (E&O) policies of our Luxia-preferred property managers, we make sure they are adequate. Your property management agreement can also require you to have enough insurance, which is good for your own protection. Please feel free to inquire further about the required insurance coverage with your property management company.

It’s crucial to carefully assess prospective property managers, which is why Luxia does comprehensive due diligence when screening its recommended, best-in-class property management services. We look at past portfolio performance, fee schedules, number of years in operation, and much more.

Regardless of your choice—whether you go with one of our recommended property managers or pick your own—we hope the details provided in this article will give you the peace of mind that comes from knowing your investment is in capable hands.

6 TIPS TO HELP YOU CHOOSE THE RIGHT PROPERTY MANAGEMENT COMPANY

Let’s be honest. You are unable to complete everything. Owning and managing a residential rental property can be difficult, especially if you lack the necessary time, expertise, or experience. However, giving control of your property to someone else might be unsettling.

How can you pick a property management firm that would look after your house the same way you would?

Here are 6 tips for choosing a property manager that’s right for you.

Look for a list at the end of sample questions to ask when you’re interviewing your future property manager.

1.

Go local.

You want a company that has in-depth understanding of the neighbourhood market and all pertinent local, state, and federal laws when choosing a company to take care of your home. Additionally, you want someone who has strong ties to the reliable maintenance and repair companies in the area. The finest property management company for you will be a nearby business with strong ties to the neighbourhood.

2. Check out referrals.

Obtaining a list of property management businesses can simply require one conversation with your real estate agent, neighbour, or friend. However, follow up on every referral. Check out review websites like Google, Facebook, or Yelp to learn more and see things from different angles. While it’s true that some people like to complain on review websites after a bad encounter, these sites also provide a quick way to get a fuller picture of a company. To ensure that the business has no complaints, you may also check the Better Business Bureau before accepting any referrals.

3. Decide on a large firm or boutique experience.

There are many different types and sizes of property management firms. It could be only one individual, a small business, or even a bigger organisation. Which one fits you best? You might be concerned that working with an individual won’t provide you access to all the services you require. You could be concerned that working for a larger corporation will reduce you to a number on a list. As a property owner, consider carefully what degree of service you require and make a decision based on your preferences. Choose residential property management firms over those that are more interested in managing commercial properties. Long-term residential rental specialists are likely to have greater experience with the several specialised challenges that come with it.

4. Aim for a full range of services.

Whether you choose a property management firm or a single property manager, make sure you’re receiving the best value for your money. All rental advertising, application vetting, legal paperwork, property inspections, rent collecting, accounting and reporting, and maintenance should be handled by a full-service property management business. Select a company that has experience remodelling and selling investment properties if real estate is your area of interest as an investment.

5. Make sure the property manager is licensed.

California Business and Professions Code 10130 states that a property management company must possess a broker licence granted by the California Department of Real Estate. Property managers who recruit tenants, negotiate leases, or collect rent must at the very least be associated with a broker who manages properties and have a salesperson licence. If you foresee a property manager handling any of those duties on your behalf, make sure they are licenced by the appropriate state agency.

6. Listen to your instincts.

Trust your instincts, as you should in so many situations. Check out the company’s online and offline presences. Will they be able to effectively promote your home and draw tenants if they can’t do it for themselves? Before selecting if a property management business is the appropriate fit for you, schedule a personal appointment with them. Have your interview questions ready and be prepared.

Take the time you need to gauge your level of comfort with the information you’ve discovered after thoroughly investigating the property management firm. Go with your gut. Do you feel at ease leaving your house in this company’s care? Consider the situation from the viewpoint of potential tenants as well. Would you like to rent from this person a house?

Selecting a property management company is a crucial choice that can mean the difference between a hassle-free and problematic experience. Make the extra effort to locate a business that will uphold your rights and protect your property just as you would. You will be glad you did!