Friday, 27 April 2012

Comparing Property Management Quotes

If you are searching for a property management company or an independent property manager make sure that you compare quotes. This will help you to get the best deal possible for high quality and reliable property management.

What Will a Property Management Company Do For You?

Management companies make life easier on the landlord by acting as the liaison between the tenant and the property owner. They collect rent, take care of maintenance problems, find tenants and handle evictions. In some cases they also handle property acquisitions, construction, repair and maintenance. They provide these services in exchange for a fee which is often a percentage of the monthly rent and can range anywhere from 3-10%. In addition to this standard fee some companies also charge additional fees repairs, maintenance and commissions. Comparing rates is the only way to find a company that will offer service and experience at a reasonable rate.

What Will You Still Need to Handle?

Even with a manager you will still need to handle some property issues on your own. Knowing what your responsibilities are is critical if you want to avoid legal troubles with your properties. Here are a few responsibilities that you need to make sure that you handle for each of your properties.

-Property Tax: You will still need to pay your property tax for any properties that you hold. This is typically paid yearly. Find out what your property tax obligations are and make sure that you pay them each month.

-Mortgage: If you still owe money on your property's mortgage you will still need to attend to this payment every month.

- Repairs: Many property owners delegate their repair responsibilities to their managers. This will save you time, but make sure that you still oversee the repairs. If the property manager doesn't handle repairs properly it can drive down the amount that you will be able to charge for rent. On the other hand if they make costly or unneeded repairs you might end up spending all of your profits on repair and lose money. If you do

delegate this responsibility make sure that you oversee and know the state of repair that each of your properties are in.

- Screening Tenants: If a bad tenant moves into your property it can cost a lot to get them out plus they can end up leaving your property in a state of disrepair which can cost a fortune. For this reason many property owners handle tenant screening on their own. If you do delegate this responsibility make sure that you provide your property management company with specific requirements and criteria before a tenant can move in.

- Approve Big Repairs- You will also need to authorize major and expensive repairs. If your property management company handles repairs you will still need to authorize major repairs such as a roof repair or repainting the unit.

To get a great property management quote call around and find out what several property management companies will charge for their services. Don't just ask about price, but also consider what services are included in the quoted rate. You should also pay attention to their level of experience, expertise and reputation.

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