If the responsibilities of managing your rental property are more than you have time to for or care to handle, you should consider hiring a property manager. From approving tenants and handling maintenance duties to cleaning a vacated apartment, the property manager can perform a variety of duties for your rental property.
If possible, you should hire a property manager that has been certified by industry associations. For more information on property manager certification and how to find a certified property manager in your area visit:
- Building Owners and Managers Association International at www.boma.org;
- Institute of Real Estate Management at www.irem.org; or
- National Association of Rental Property Managers at www.narpm.org
When you screen a potential manager be sure to ask these questions:
- How long has he or she been a property manager?
- What is the manager's educational background?
- Is the manager professionally certified?
- What examples of asset improvement the property manager has achieved on other properties?
- What professional references does the manager have from other properties?
- What are your charges?
- Who will we determine if you’re doing a good job or not?
FREQUENTLY ASKED QUESTIONS
Q. Should I use a management plan for my property?
A. A prospective property manager should have a sample management plan for you to inspect. The management plan is a blueprint for how your building will be run. It should contain a regional analysis, neighborhood analysis, property analysis, analysis of alternatives (operational changes or suggested changes in property use), cost and benefit analysis, and conclusions and recommendations.
Q. Will the property manager live on the premises?
A. That depends on your property and the property manager. In a larger rental property it might be more effective to have a designated office or apartment on site for the manager. This will also make it easier for the manager to handle any problems that arise on the property. If you own a property with only two or three rental units, it would probably be more effective to have the manager at a different location, as long as he or she can quickly get to the property when needed.
Q. How much should I expect to pay for a property manager?
A. Depending on what area of the country you are in, you should expect to pay between 4 to12 percent of gross rents. This fee is usually lower for larger buildings and higher for single family homes. You should also determine whether the fees will be billed or deducted from your account directly.
Q. Will the property manager handle advertising a vacant apartment?
A. In most cases, yes. A good property manager will have an advertising template that has been effective in renting units similar to your rental property. You should review and approve the advertisement every time it runs, even if it uses the same basic language.
Q. Can a potential tenant ask for information on the property manager?
A. Yes. A smart tenant will want to know specifics about the property manager since this is the person he or she will be relying on to maintain the property and handle emergencies. The manager should be able and willing to answer any appropriate tenant questions, or even have an information sheet available on exactly what the manager's duties are.
Q. Will the property manager do the hands-on maintenance duties?
A. Not likely. A property manager, especially one who does not live on the property, will probably hire a janitor to do basic common space maintenance or maintain the grounds. The manager will also hire out contracting services for more complicated repairs or property improvement.
Q. How do I know if my property manager is doing a good job?
A. If you are not receiving complaints from your tenants and the apartment turnover is low in your rental properties, your manager is probably doing a good job. But, a responsible landlord also has to rely on his or her own impressions. Just because you have a manager does not mean you should not regularly visit your properties and see how they are being maintained.
