Obtain a policy and procedure list from the management firm. You should know how they manage tenant ads, late payments, evictions, maintenance calls, assessments, payroll, and owner disbursements, among other things. This knowledge would be readily available in a successful management firm. Check to see if the management firm is accredited in the state where you’re investing. In most states, the property manager must be a licenced real estate broker who is kept accountable to the state real estate board.Do you want to learn more? Visit Polaris Property Management, LLC
Obviously, “how do I find a successful property manager” is the next question. Here are some pointers on how to choose a successful management firm. This does not necessarily mean you; your property will be managed by someone else.
Obtain a recommendation. When you invest, there are usually people in your peer group or circle of influence who are investing in the same market as you are or who know someone who is investing in the same market. Inquire about who they currently use, who they previously used, and why they switched. Find out what they like and dislike about their management firm, but most importantly, what they don’t like. The management company can do an excellent job of finding tenants, but they fall short on communication; without communication, you’re doomed! For the investor’s peace of mind, having access to the management company is important. Nothing is more irritating than leaving a message or sending a few emails and hearing crickets in the background. At first, you think they’re swamped and won’t get back to you right away. However, after a while, investors begin to wonder why no one is responding, and fear sets in. Is the occupant still there? Is it true that my money was stolen by the management firm? IS MY HOUSE ON FIRE? In most cases, none of the above is valid, but a good property manager will respond to your inquiry within 24 hours.