The most important step after acquiring an investment property is to protect it properly. You want to manage all of the aspects appropriately to keep the integrity of the building while also building on the value and generate a profitable return. You may find you need to bring in additional help to run the day-to-day operations.
When the time comes for you to hire a property management company, you want to make sure they have your best interests in mind. It’s important to ask the right questions and understand the risks. Here are some qualities we recommend looking for when hiring a property manager.
Credentials – Professional property managers take their training seriously. Look for those who back up their expertise with proper licensing and credentials. Verify their licenses are current and ask about the certifications they possess. Several trade organizations offer rigorous training courses with completion certificates, such as the Institute of Real Estate Management and CCIM for Commercial Investments. Also be sure they have a brokerage license that is up to date, as most states require third party property managers to be licensed. This information can likely be found on your state’s real estate commission website.
Specialized Experience – Keeping up with changes in the legal system can be time consuming and confusing. A good property manager stays on top of local, state and federal laws and will help protect your properties against any risk. Also look for someone who has managed similar types of properties and has the ability to meet your commercial or residential needs.
References – These days reviews play a large part in choosing products and services. Property management is no different. Check out any reviews they may have received online or ask directly for references. Trustworthiness is an important quality to have when it comes to a client-manager partnership. Be sure the person or company has relationships that can vouch for a good reputation.
Insurance – Along with understanding legal complexities, be sure the property manager carries the appropriate insurance. General liability, fidelity and crime insurances, as well as property insurance and any other necessary insurance you may need should be included in the agreement. Ask for an explanation of any insurance protection offered.
Service Agreement – Review the terms of the agreement. What does the tenant lease agreement look like? What is the tenant screening process? Check information on rent collection, contract conditions and durations, services provided and fees. It’s also good to understand what the expectations from you, the owner, are and how to fulfill those responsibilities.
Learn more about Barker Property Management at www.barkerbr.com.