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Things To Consider While Hiring A Management Company

Aug 17, 2007
Its always good form to make a precise plan when hiring a team of people to do a specific task...
The following are some of the factors that you must keep in mind while you are hiring real estate investing management company. In order to find a good property manager, you must ask the following questions, because if you ask everything upfront there will be fewer misunderstandings.

What Are The Other Properties They Manage?
You must carefully examine what the other real estate investing properties are that the property manager manages. Make sure that they have rental properties that are very much similar to yours in nature. Inspect and do an extensive research the properties, they are managing. See if they are properly maintained.
How Much Are They Charging?

This is very important. The usual fee they charge varies from place to place, but on an average, they could be as low as 4% of gross rent for larger buildings to as high as 12% for single-family houses. Make sure that the fee is in accordance with the charge normally applicable in your area. Also, some real estate investing management companies do not show the real picture and it is only after you have hired them, that you come to know about the hidden charges. Therefore, make sure the fee is clearly stated and understood. Also, see if they are charging any extra cost beyond the legal fees.

Who Will Handle Your Property?
Before you hire a real estate investing management company, you must be aware of the person or persons who are going to manage your property. It is best if there is only one person assigned to manage your property all the time. Get that persons complete identity, and make sure he/she is experienced in the field.
What Will Be The Fee Method?
Ask them when and how will the fee be collected. Will it be billed to you? Will it be directly deducted from your account? Will they charge on a monthly basis or on an annual basis?

What Will Be Their Method Of Advertising?
You must know beforehand certain things regarding the advertisement of your real estate investing property. For example, what type of advertising will be using? How exactly will the units be advertised? Also, what will be the overall cost to you?

Reports And Accounts
You must also ask them certain things about reports and accounts. For example, what type of accounting do they use? What types of reports do they send? How often do they send their reports? How do they set up the accounts?
Business Hours
Do not forget to ask about their normal hours of operation. For example, What are their business hours? If it is a weekend or a holiday, who will take the call?

These questions are just to give you a broad idea. You should also ask many other questions that are based on your particular needs and the needs of the particular real estate investing property.
Overall, management companies offer services that can make you wealthy while you just sit back. Real estate investing and being a landlord are a lot less stressful with a good property management company.
About the Author
James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing
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