What Should I Expect From A Property Management Company
I am relatively new to real estate investment and with my work schedule I would prefer to let a property management company actively manage my property. I have talked to a few companies and they all seem to offer varied services (some manage all administrative aspects, some all maintenance, some both, and some parts of each). I am not sure if I need to look a little harder for a company because I am not sure what is reasonable. What should expect in terms of reasonable pricing for management of both administrative aspects and maintenance issues?
Thanks
I think it is definately best to let a property management company manage rental property. Typically in my area they charge 10% of the gross rent for managing, and 1 months rent for placing the tenant. Some areas of the country are more, some are less.
As far as services provided, they should take care of arranging for maintenance, collect rents, arrange for evictions, etc. They should be able to do small maintenance ie $50 or less without calling you first. Larger items should require a call. Be wary of companies who have their own in house maintenance crews. There are horror stories of pm companies who charge for services not provided to increase their bottom line. You need to make sure you are doing your homework when you select a company. Another little tid-bit is that you need to read the contract. Some contracts have a sale clause that gives them a percentage of the sale regardless of whether or not they are the procuring cause.
Thanks for the help.
"Also make sure they are CPM(Certified PM)"
Certified by who? Real Estate License? Or is there a National Organization that certifies PM's?
Thanks for the help as I learn about REI!
There is an Certified Property Manager license. You can check out IREM (Institute of Real Estate Management) and you can find local CPM's. I would post the website, but I don't want to break the rules. Do a search online for IREM, you'll find it.
Chris