What Information Do You Need From Your Property Manager?

If you are looking for someone to manage your property, then choosing 360 property management best for you, but in order to choose the person that is right for the job, you have to ask the right questions. The following information will help you do just that.

Questions To Ask

1. What is your fee?

Find out how much the person intends to charge you. Fees normally range between four and ten percent of the gross income for the month.

2. What kind of fees do you have?

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Make sure you understand what you will be charged each month. The property manager may intend to charge you for extra services, like evictions, advertising or maintenance. For instance, let's say that your property is vacated. 360 property management company will help you find a tenant, but it comes at a price. And there are many property management companies which may charge as much as fifty percent of the rent for the first month. Look over your contract carefully. Put in conditions that will help you going forward. For instance, have the contract state that if the tenant breaks their lease or must be kicked out, you get back your leasing fee.

 

3. Is your fee based on how much rent is handed over?

You want to only pay your property manager a fee if the rent is collected. If the fee is based on the amount that is due, you might find yourself paying money even if no one is staying in the property.

4. What is included with the management fee?

Don't accept what anyone tells you at face value; make sure you do your own research to ensure you are not being taken advantage of. If a property manager quotes you a management fee, find out what they do for that fee. For example, is their only job getting the rent? Does the property manager intend to also handle other jobs as well, like taking care of a maintenance complaint? Some individuals will charge more the more that they do. Therefore, if they quote you a low management fee, they might not be as much of a deal as you think they are.

5. How do you handle the money?

You need to make sure you know where the money is being kept. For instance, does the rent go into an account? Will you be able to access that account? How does the property manager get paid? When do you get your cut of the rent? Will the money be given to you in the form of a check or a direct deposit? Is the property manager going to provide you with a report on all incoming money and outgoing expenses? It is important to be clear about these points because money management can turn into a huge issue.

The Agreement

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Once you decide who you want to work with, you need to turn your attention to the management agreement that they provide you with. This is not a document to be taken lightly; you need to read over the information and make sure that you agree to everything that is written down. You can talk to the property manager all you want, but the issues and points you discuss must be in writing in order to be enforceable. In particular, you need to look at six sections of the contract. 

 

Services & Fees

This part of the contract outlines what the manager is expect to do and how much he or she will charge you for the work. It is important to know what the management fee includes. It is also important to understand what else the property manager is willing to do and how much he expects to be paid for those services. Finally, you need to understand what services the property manager will not take on.

Owner Responsibilities

In addition to understanding what the property manager is supposed to do, you must know what your own role is as well. This part of the contract outlines what is expected of you as a result of agreeing to this relationship. It should also go over what you cannot do.

Housing That Is Equal Opportunity

The agreement must explicitly state that equal opportunity housing is supported. In particular, it needs to state that the management company will follow federal and state laws as they relate to fair housing.

Liability

While all the sections of the agreement are important, this one is something to pay even closer attention to. Basically, this section keeps the property manager safe from a wide variety of situations unless they have been negligent. However, it is important to note that if the property manager hires someone to come on the property, like a plumber, and that person is negligent in some way, that is not the manger's fault.

Length of Contract

Do you have prior experience with the property manager? If not, you should not sign a long term agreement. You don't know if you will be happy with the work or not, so you need to be cautious. Many companies, however, will not agree to work with you unless you sign for a year. In that case, you need to have a section of the agreement that addresses termination, so that you can get out of the agreement if you are not pleased with the service. In many cases, you will have to pay money to get out of the contract. However, make sure you only sign an agreement if you do not have to have cause to terminate.