While managing a property may seem like an easy job, it’s not.
Rent collection, maintenance and repairs, and eviction of tenants are just some of the major responsibilities of a property manager.
Property owners hire property managers to take care of these tasks so that they do not have to worry about their investment. But what should you consider when hiring real estate property management services? Read on to find out.
Table of Contents
Knowledge of Property Law
A property manager’s main job is to manage the day-to-day operations of a property—from collecting rent to handling maintenance issues. But they also play an important role in evaluating legal risks. They should know how to handle evictions and comply with fair housing laws. Ideally, they should also know how to handle landlord–tenant disputes, which can become costly without proper management.
Your property manager should also understand how to navigate local rental laws, which vary from state to state, and the only way to have done this is by successfully completing a property management course. For example, in California, landlords must disclose any known environmental hazards on their properties, including high levels of lead paint or exposure to asbestos. Without knowledge of these property laws, you could be held liable for any health hazards that affect your tenant’s well-being.
In short, you want someone who knows the ins and outs of managing a rental property and is able to assist you with any legal matters that may arise as a result.
Ask others in your network for recommendations
If you’ve never hired a property manager before, it’s worthwhile asking others in your network if they have any recommendations. They may have hired a property manager in the past, or know someone who has, and can share their experiences with them. You might even find that one of your friends or family members works as a property manager themselves.
Look at their previous experience
When hiring a property manager, it’s helpful to look at their background and see how long they’ve been working in real estate for. It’s also important to check whether they’re licensed or registered with state or territory authorities as this would show that they’re legally able to work as a property manager. Those with accreditation through the Real Estate Institute of Australia may also be worth considering as this means they’ve undertaken additional training specific to the profession.
Property Manager Will Not Hire A Tenant
While most landlords expect their property managers to hire their tenants, this is not really their responsibility. In fact, it is contrary to how these companies work because they don’t want to be held liable for any errors in choosing tenants.
What they do is to provide you with an application form for the tenants and conduct background checks on them but ultimately, the decision on who gets your rental unit is still yours.
They can assist you in evaluating the tenants’ applications and make sure that only those who meet your criteria are able to apply for the rental unit. They can also perform thorough background checks and verify employment. But then again, the decision of who will be renting your place is still up to you.
