Apartment Property Management

Apartment property management is considered the managing of a multi-unit rental property and the residents or tenants that occupy it. These properties can range from small multi-unit buildings to very large complexes housing hundred of residents. Residential property management is a more industry used term and could include the managing of single-family homes as well as apartment complexes.

As you can imagine the managing of these types of properties can become quite complex and time consuming in comparison to managing a single-family house. Many owners of apartment buildings do not have the time, expertise or the desire to manage such on their own. In these cases, it is recommended to hire a qualified property management company that specializes in apartment property management.

Responsibilities of an Apartment Property Manager

Here are just a few apartment property management responsibilities that could be required of anyone managing an apartment building:

• Rent collection


• Showing available units to prospective tenants


• Credit and background checks


• Initiating lease contracts


• Monitoring and processing lease renewals


• Enforcing the rules of a lease contract


• Dealing with violators of a lease contract


• Handling an eviction from start to finish


• Mediator when feuds between tenants occur


• Utilities


• Grounds keeping


• Security and safety of premise


• All types of maintenance issues or repairs you could think of


• Knowledge of landlord/tenant law


• Knowledge of fair housing laws

Not ready to manage your Apartment Buildings YourselfThe good news is you can enjoy all the financial benefits of owning these types of properties but not have to deal with the managerial responsibilities of managing them. Some apartment building investors though may decide to take on certain responsibilities themselves. This is a great way to educate yourself, learn from real life experience the in's and out's of the real estate investing business and of course save some money. That being said, we highly recommend acquiring legal advice or counsel if you are unfamiliar with landlord/tenant and fair housing laws in your state and at the federal level.

Hiring an Apartment Property Management company

There are many apartment property management companies in your area who are well-qualified, licensed, and well versed in city, state and federal laws regarding the responsibilities between landlord and tenant. If you're ready to delegate the management of your apartment building today, we recommend interviewing several apartment property management companies. Having an apartment property manager on site at your apartment complexes is a good idea, especially when you cannot oversee the maintenance and renting business that comes with owning larger properties. Often, on-site apartment property managers that maintain apartments will be given their own apartment as part of their compensation.

Things to ask before hiring an apartment property management company

Experience - How long in business. Does the Apartment Property Management team have a proven system in place to streamline operations such as maintenance repair, timely statements, rental deposits, and communication channels? More companies are giving owners access to their property account information via a web site portal. Here you can view your statements, any repair items or rent deposits..etc.

Credentials - Does the Apartment Property Management team possess all licenses or certification required by state law? Unfortunately every state licensing requirement is different. We always recommend using a licensed Property Manager for all your rental property needs whether state required or not.

What percentage of their management portfolio are apartment complexes. If 90% of their portfolio is managing single-family homes, you may want to consider hiring one with more experience in managing larger multi-units.

Get references - Always ask for a current list of properties they manage (do some drive-by's) and talk to other property owners who are their clients.

We suggest hiring a local real estate lawyer to review the Manager/Owner contract and the Landlord/Tenant contract. And don't be afraid to request changes be made if necessary.

And go over all the fees involved in the management of your property. Set up fees, lease renewal fees, do they impose a mark up fee for service/repair calls etc. Find out what their cancellation policy is too. Once you think you've got all your questions answer, then ask this one "Are there any other fees I should know about that we have not discuss that may affect me?"

Investing in apartments for cash flow

Investing in apartment buildings is a great way to build your real estate wealth. Typically these types of properties do well for cash flow to the investor versus single-family houses where you may see appreciation in value more common. When qualifying these types of properties for your portfolio you will want to take into account the passive income that will be generated along with the expense ratio. It's all about the numbers. A good apartment property management company should be able to help you in your decision-making.

Eleven Key Attributes of a Good Property Manager

Property Management is a career profession. The industry allows for employment growth, continual learning experiences, and the opportunity to work with diverse people and income groups. The Property Manager can work either directly for an owner of real estate properties, or for a property management company, contracted by an owner or legal entity to care for the real estate over a specific period of time.

The Property manager has a fiduciary relationship with the management company and property owner. A fiduciary relationship is one that is based on a mutual trust and complete confidence in one another.

The Property Manager is provided an owner's real estate portfolio to manage to its "highest and best use" in exchange for an employment contract or salary. Real estate assignments for the property manager includes apartment buildings, condominiums, hotels, storage facilities, shopping centers, office buildings, government subsidized properties, rooming houses, abandoned buildings and plots of vacant land, to name a few.

I have managed almost all of the above types of properties for over twenty years. I have managed public and private housing, for non-profit organizations, for the federal government, and for private developers and real estate investors. I also owned my own property management company for eight years. I now teach, speak, and write about property management standards and techniques. Here are some crucial skills, which I know from first hand experience, must be accepted as required attributes and learned skills in order to be a good property manager.

1. Must Know and Stay Current on Local Ordinances and State Laws

Managers are required to perform their work according to the laws of the land. The government (city, state, and federal) dictates how real estate is to be managed, from requiring a real estate license (depending on the state), to the use of the real estate (such as rent control laws). From proper trash removal to how and where we must keep security deposits, the manager has to keep abreast of the many legal requirements of managing real estate. If a mistake is made or a task is forgotten, it could cost the owner his or her property, and/or a management company's reputation, loss of the account, or even the loss of real estate licenses.

2. Must Be Highly Ethical and Honest

Property Managers work on the Honor Code when they handle other people's money. By collecting rent, security deposits, laundry machine money et al, the property manager holds a fiduciary relationship with the property owner and/or management company. The owner entrusts the property with thousands of dollars each month, plus the value of the real estate itself. The manager is hired to perform at his or her highest level of integrity. On a daily basis, the property manager's good judgment and sense of what is right and wrong is called into play.

3. Must be Detail Oriented and Organized

Managers collect the rent daily, and must ensure that each rent is paid and posted to the tenants' account as received. Financial records detailing each and every rent transaction are kept, either by rent cards, or on the computer. Lease expirations and renewals, rent increase letters, and rent invoices must be mailed on time. lines for court appearances must be kept, and clients must receive their written monthly report of operations. A skilled property manager is able to multi-task, keep site files organized, and prioritize repairs and assignments.

4. Must Have Good Communication Skills

Managers must be able to communicate with people from all walks of life, cultures, ethnicities, and personalities. Managers must be able to articulate their cases in front of judges, talk to the owner, negotiate with vendors as well as speak appropriately with tenants, who are often frustrated, upset, or angry. A good manager must be able to stay calm, and communicate in a professional manner. Familiarity speaking in other languages is always a plus.

5. Must have Good Computer Skills

Computer competency is a technical skill, like driving, typing, etc. The use of email, mail merge, and faxing through the computer is at the heart of property management today. This is especially true if the property is on one part of the city or state, and the home office is a distance away from the site. If a manager does not have a solid command of the computer and its basic programs, such as Microsoft Word and the spreadsheet Excel, you may be hard pressed to find an administrative position in this field.

6. Should Like Working with the Public

If everyone paid the rent on time by the fifth day of each month, the manager would not have rent collection work to do. If a property never had problems, such as toilet overflows, lost keys, or defective smoke detectors, a property manager would have little to do. Therefore, it is important that a manager enjoy dealing with people with problems. A manager should at least like helping tenants with dignity, and in a responsible manager. If you do not like being interrupted several times a day with a dilemma to solve, this type of job may not be for you.

7. Must Be Patient and Have a Sense of Humor

There is some pressure involved working with the public. There are days when nothing seems to go right, and if you happen to have a headache that day, it could be a long 9 to 5. A calm personality or a good sense of humor will take you a long way in property management. If you tend to be high-strung, anxious, or become angry or impatient while working with tight deadlines or with people with problems, you may want to re-consider taking on this profession.

8. Must Like to Read and Conduct Research

There are many types of leases, agreements, forms, and other legal documents that must be signed between tenants, the manager, government agencies, the site attorney, and/or the owner. Real estate and governmental regulations change; the manager must be willing to read up on them and stay current. Documentation must be read and checked before submitted to tenants, agencies, the owner, etc. If you do not like to read in order to keep up with the latest trends, legal and industry changes and terminology used, you will not be able to properly do your job.

9. Must Have a Strong Sense of Duty and Commitment

Ensuring that the tenants under your control are treated with respect, have heat and hot water, are not subjected to or committing illegal activities or disruptive behavior of their neighbors, are some of the managers' duties. Tenants depend on the manager's sense of obligation to the property and the families or professionals who live in it. The manager may not always have the funds to do everything all the time, but what can and should be done, such as keeping the building clean, and having a sense of urgency to get work completed in a timely manner.

10. Should be Flexible-Minded

Property Management is a fluid profession, in that it follows economic, governmental, industry, and societal changes that impacts how a property is managed. Managers who still like the "good old days" of mistreating tenants and making rental applicants jump through unnecessary hoops to get an apartment (or the opposite, by not checking anything), will find him or herself out of touch, and maybe out of a job. The ability to accept changes of law, obey fair housing laws, have a positive, or at least a neutral, attitude about people who are different, and above all, to be open-minded, is a key element of a successful manager.

11. Must Be an Excellent Follow-Up Person

A manager can never assume that a repair or rent payment plan will happen on its own. Our mantra is: "Follow Up, Follow Up, Follow Up!" This is one of the most critical skills of a good property manager. The ability to multi-task, keeping several balls in the air without dropping any of them is challenging, and difficult at times. The ability to successfully multi-task is often rewarded both financially and in promotion decisions.

Property Management Services

Management companies provide a wide array of property management services to investors. The needs of each real estate investment may be different and the exact service offering of each company will vary, but here is an overview of the main services offered by residential property management firms.

Determine the best rental rate

A manager will perform a detailed evaluation of your property in an effort to determine the optimal rental rate. This typically involves documenting the interior and exterior with quality photos, offering recommendations on repairs and cosmetic improvements that will improve ROI, researching comparables and their current rental rates, and discussing with the owners the pros and cons of different policies and restrictions on the property.

Market the unit to tenants

A competent property manager should have a lot to offer and be actively involved in the process of gaining new tenants. This typically means preparing the home for rent, creating ads and marketing the rental online and offline, working with other realtors and leasing agents to find prospective tenants, fielding calls from prospects for questions and viewings, meeting potential tenants throughout the week and weekend for showings, providing a legally compliant rental application, and collecting the signed application with the application fee.

Screen potential tenants

The last thing any landlord wants is a troublesome or delinquent tenant. A property management company worth its salt will carefully screen potential tenants, perform the necessary background checks, grade the tenant according to predefined criteria and inform both the tenants who were selected and those who were turned down of the final decision. This doesn't eliminate the risk of getting a bad tenant, but it does much to minimize it.

Supervise tenant move in

A property manager will provide assistance to tenants during the move in process. They will draw up the leasing agreement and review its requirements with the tenant to make sure they understand their responsibilities, ensure that all the necessary agreements have been signed, perform a detailed move in inspection, and collect the first month's rent and security deposit.

Collect rent

Property managers are responsible for collecting rent from the property. They should deal proactively with late payments, sending out pay or quit notices, and enforcing the late fees specified in the leasing agreement.

Evict recalcitrant tenants

A good manager will be prepared to deal with this unpleasant process in an orderly fashion according to the law. They will know how to file the relevant paperwork to initiate and complete an unlawful detainer action, represent the owner in court, and work with law enforcement to remove the tenant and the tenant's possessions from the unit.

Provide legal advice

A management firm will be able to provide advice in the event of a legal dispute or litigation brought against the owner. If necessary, they will refer the owner to a qualified attorney. Most importantly, a competent manager will understand and abide by the latest local, state and federal legislation that apply to rental properties, minimizing the owner's legal risks.

Inspect the property regularly

Periodic inspections of the property to identify repair needs, safety hazards, code violations, lease violations, etc, and keep the owner informed of the condition of the investment.

Manage finances

Property management companies may provide a wide variety of finance-related services to real estate investors, including accounting services, annual reports for tax purposes, record keeping, advice on tax deductions, and monthly cash-flow statements showing income and itemized expenses.

Maintain and repair the unit

A management company will coordinate with the owner to make sure the property receives the necessary maintenance and repairs. The work may be performed by their in-house maintenance crew, or through a network of licensed, bonded, and insured contractors, who should be vetted for good pricing and work that is up to code. They should maintain a 24 hour emergency hotline that tenants can call to request urgent repairs.

Supervise tenant move out

When a tenant is ready to move out, the property manager helps facilitate the process by inspecting the unit, communicating with the tenant, refunding the balance of the security deposit, cleaning the unit, re-keying the locks, and putting the unit back on the market for rent.

This isn't a comprehensive survey, but is a fair summary of the services typically performed by residential property management companies.

Snag Your Property Manager Jobs Easily With These Proven Steps

Are you curious about property manager jobs? While there are no formal requirements for working with a property management company, it's important to prepare yourself adequately to work in the field. Use this simple step by step approach to gain the experience that you'll need to succeed as a property manager.

Does Formal Education Help for Your Property Manager Jobs?

While A college degree is not strictly required for those who choose to pursue property management jobs, it provides you with important interpersonal and professional skills that you can use on the job. No matter what career you choose, a college degree can only help you in your career goals.

When it comes to property management, certain courses will help you gain more insight into the field. Consider taking classes in real estate, accounting, business, finance, and related fields.

In general, pursuing a bachelor's degree or higher is a good idea, and many companies do show a preference professionals with degrees. However, if you are unable to complete a four year degree or higher, consider taking part time courses at a local community college.

Training and Earning Your Property Management Certification

When you are looking for property manager jobs, having the proper training and certification can provide you with a distinct advantage over the competition. If you don't have any working experience, having the right training can mean the difference between getting your job dream and being shown the door.

Property management training courses are available through a wide variety of avenues. They are offered by many vocational and technical schools, as well as real estate associations. You can also find options for online training. This is especially helpful if you already working full time and are moving onto a new career.

It is also a good idea to pursue CPM (Certified Property Manager) status through the Institute of Real Estate Management. To do so, you must pass mandatory courses in human resource management, real estate financing and marketing, and property management. These courses can be completed via distance learning or in a classroom.

How does Work Experience Affect Your Property Manager Jobs?

Even though training and education are very important when it comes to property manager jobs, there is no substitute for the first hand experience you get from working in the field.

Perhaps the most important lesson you'll learn from on the job experience are the interpersonal skills you gain from dealing with landlords, tenants, and third parties like contractors, attorneys, and other real estate professionals. This type of experience simply can't be gained from a textbook.

Working your way up through the ranks is the best way to learn these skills.You may want to consider becoming a member of a professional association for property managers, like the National Association of Residential Property Managers (NARPM), the National Apartment Association (NAA), or the Institute of Real Estate Management (IREM).

Joining a professional organization will raise your credibility with potential employers, and provide you with access to experienced mentors to provide support and advice.

By taking these steps, you'll be well on your way to gaining the experience that you need in order to take on property manager jobs of increasing responsibility. As with any profession, you should commit yourself to continually learning and perfecting your trade.

Should You Hire a Property Manager Or Not?

Using a property manager has both pros and cons. There are no hard and fast rules regarding whether you should hire one or not. You have to evaluate the answer based on your own situation. The following are some considerations to take into account before you jump to a conclusion.

Time Commitment

A lot of real estate investors have a full time job so they do not have enough time or energy to manage properties. Especially if the house is situated remotely, many investors might feel they cannot manage on their own or do not want to travel. If fact, you can manage on your own.

Cost Benefit

If you have several properties or an apartment complex in one area, using a property manager to manage all the property may be economic. The manager will be able to combine expenses and costs. For example, they can purchase maintenance materials in bulk for all the rental units. If you don't have several rental units in one area, but together with your friends' or families' rental units you do. Then you can afford to hire a professional dedicated property manager.

The Nature of the Rental Market Where your Property is Located

If your rental property is located in an area where renters mostly check out the rentals through the local property management companies, then you have no other choice but to hire the company. This may happen in small towns where there is only a handful of management companies.

Tenant's Characteristics

Some tenants are not easy to deal with. You may find some tenants that are constantly paying late, asking for a lot of unnecessary repairs, complaining about everything, or having difficulty keeping up the premises. A property manager may handle the situation better than you as you might be emotionally attached to your property and less likely to handle many issues impartially. What's more, the tenant might try to take advantage of you. They may take it more seriously if they are dealing with a professional property management company instead of an individual.

Does your Property Need Frequent Repairs or Maintenance?

If your property needs frequent repairs due to its age or other reasons, having a property manager may help you if repairs are a burden. Usually the property management company either has its own in-house repair service or contracts with outside vendors. In any case, you should ask about it before hiring them and understand how much they charge.

What Kind of Service do you need from a Property Manager?

Do you need a full service property management, which includes placing tenants and ongoing management service? If the condition of your property is good or new and not much repair is anticipated, you may save your money on the ongoing management service part. If you already have a tenant but you are moving out of that area you can use a local property manager to collect the rent and do the maintenance work.

Lack of Interest in Managing

Some rental property owners just do not want to get involved in managing the property at all. They rather have someone look after their rental properties so they can enjoy their life doing other things. That is absolutely ok. Enjoying life is also very important.

The purpose of hiring a property manager is to free up your time and make your rental investment successful. Nevertheless, hiring a poor one is worse than hiring no one. You can end up spending more time and money to rescue your property.

If you hire one, keep in mind it does not mean you have to be a completely hand-offs owner. You should keep in regular communication with your property manager so he understands you do not treat your real estate business lightly. How to hire a good property manager belongs to another blog we will write about.

Commercial Property Management - What to Look For

So you've decided to invest in commercial properties...perhaps a shopping center. What do you do next? Many investors face that tough question. When reality sets in the task of maintaining and running a commercial property can quickly become overwhelming, even to the savviest investor. That is when they employ the services of an experienced commercial property management company.

What can an experienced commercial property management company do for you?

1. Collect all rent payments and deposit them into your account.
While collecting monthly rent from your tenants is often a challenge, a good property management company already has its own systems in place to ensure that rent payments are collected when they should be so as not to affect your cash flow.

2. Know what competitors are charging.
A really competent commercial property manager monitors the rental rates you are charging to ensure that they are priced just right for the area. This can be a key factor in securing and keeping good tenants for you.

3. Be Knowledgeable of All Pertinent Real Estate Laws and Statutes.
Commercial property managers stay abreast of important laws pertaining to your property to ensure that your real estate properties are in compliance and up to code.

4. Be a Masterful Marketer.
An experienced property manager is a master at handling all the current online and offline marketing and advertising opportunities to promote your property. These strategies will keep vacancies at a minimum.

5. Be Meticulous at Inspections.
The commercial property manager you choose should be vigilant in the maintenance of your property through regular inspections. It is important that they find and fix any problems before they grow into a larger issue before, during and after your tenant takes occupancy.

6. Have a Proven Ability to Keep Occupancy Rates High.
This can take a lot of a manager's time, so be sure he has the availability, staff and resources to handle this important service. A good property manager will handle aspects of securing the right tenants for your shopping center by conducting all the necessary background/credit checks, credit reports, etc.

7. Have Great Resources.
Experienced property management firms have spent time over the years forging important relationships with suppliers, contractors, maintenance workers, etc. who can save you time and money when making changes or repairs to your shopping center.

8. Be a Time Management Whiz.
Hiring a good commercial property manager to handle all the details concerning your center frees up your time to focus on other endeavors. Look for programs used by your prospective managers to indicate that they value their time and use it well. This will mean a more efficient and ultimately effective administration of your program.

9. Be Able To Manage Properties Anywhere.
Because it's not possible for you to efficiently monitor your commercial properties that are located out of your geographic area, an experienced property management firm with multiple offices or affiliates can make your life incredibly less complicated.

10. Financial Management.
Most commercial property management professionals also assist with your financial management strategies and charge investors a percentage of the monthly rental rate of the property, usually 3.5% to 6%. Savvy investors realize the benefits of a good property manager and gladly pay this fee.

Make Finding a Property Management Co Easier on Yourself by Asking theRight Questions, Part 1 of 4

This is a four part series where we have outlined important questions to ask a property management company before hiring them.

Series 1 Company's credentials
Series 2 Property management services
Series 3 Property management fees
Series 4 Tenant screening process

Property management companies come in all sizes, capabilities and expertise. Just because one works for one investor doesn't necessarily mean they will work for you. Below we have outlined some important questions to ask a company during your initial interview process. Their answers to these questions will provide insight into their business capabilities, credentials and areas of expertise,and can provide you with an understanding of the type of services they offer which are important to you.

Series 1 - Credentials

Years in the business - Years in the business can equate to experience and stability within a company. Of course things such as changes in key personnel or senior management can jeopardize this. But generally this is a good indicator of a company with a solid foundation. Chances are they have solid processes and procedures in place to streamline the management of possibly hundreds of properties all at the same time. Make sure these "years in the business" are related to property management and not sales only. Just because they have 30 years running a real estate sale department does not make them an expert in property management or tenant relations.

Done business under another name - You should do your due diligence and contact the Better Business Bureau or other reliable service such as Dun & Bradstreet to see if the company your interested in has a good track record or any consumer complaints filed against them. The Better Business Bureau assigns grades from A to F with pluses and minuses. A+ is the highest grade and F is the lowest. The grade represents BBB's degree of confidence that the business is operating in a trustworthy manner and will make a good faith effort to resolve any customer concerns. If the company your interested in has done business under another name you will want to check the track record of this business entity also.

Property Management Only or Sales also - Some investors will only hire companies that deal strictly in property management when it comes time to managing their rentals. These companies are focused on every aspect of property management since this is all they do, and they will not be influenced in trying to get you to sell and making a sales commission.

Other investors may find security in knowing they have a management company that is well verse in sales. A company that offers both sales and property management can be very useful if you plan on buying multiple properties and want to work exclusively with one company for buying and managing all these properties. These companies typically will have a good grasp of the overall market condition whether buying, selling for owner occupied or investment.

Real Estate or Brokers License - In order to practice business as a property manager some states require they process a Real estate or Broker's license. To receive a license requires extensive education as well as passing the state's licensing exam. In order to keep their license current they must also participate in ongoing courses. These courses and license designations cost money and show they have a commitment to their trade. Other states may only require a certificate, which consists of basic classes and passing a class exam.

Staff personnel - Some management company may employ hundreds of employees, while others may be run by a sole proprietor. What you want to find out here is the ratio between their portfolio of rental properties and managers they employ. In other words, if they manage several hundred properties yet only have two staff managers, they may be overworked and unable to give you the service you expect.

Type of properties you manage - Some property management companies manage all types of properties while others specialize in one type, such as residential. If you have a single-family house that needs managing, a company with 90% of its properties being commercial property may not be a good fit. Typically commercial and community association management is the most profitable for a property management company. And some residential property management company may prefer to manage only multi-unit apartment buildings of a certain size and not manage single family houses at all.

Should I Hire a Property Management Company?

Depending on their circumstances, property owners may choose to manage their properties themselves, or they can outsource these responsibilities to a professional property management company. The following questions should help you decide whether or not you should consider hiring a property manager.

How far do you live from your property, and how often can you visit on a regular basis?

For your property to be a successful investment, inspections, maintenance, and collections need to be performed regularly and often. This can be feasible if your property is close by, but the larger the distance, the greater the temptation not to keep a close eye on things, and that can be a recipe for disaster. Plan on making monthly scheduled visits and be prepared for a middle of the night emergency call that requires your immediate attention. Determine if this is feasible for you in the long run.

How do you deal with stress? Are you a tolerant person?

In addition to the seemingly simple task of collecting rent every month, property management tends to come with its share of unique challenges. Ask yourself how you would react in the unfortunate event that tenants:

• Get in fights with other tenants or neighbors


• Have domestic disputes


• Conduct illegal business in the dwelling


• Carry on all-night parties and revelry


• Try to sneak extra people or animals into the home


• Decide to sue you


• Trash the property


• Incite the wrath of the HOA because of repeated deed restriction violations


• Refuse to pay rent because they are a "professional tenant" and know how to work the legal system for the maximum amount of free housing at the owners expense?

Are you currently overwhelmed with your property(ies)?Do you have things under control, or do you need help?

How many rental properties or units do you have?

The larger your investment portfolio, the easier it is to let things slip through the cracks, and the more you stand to gain by employing scalable best practices. Hiring a competent property management firm can help mitigate these challenges.

How experienced are you in handling maintenance and repairs?

Are you able to fix it yourself, and if not do you know who to call? Maintenance and repairs are an important part of landlording, and need to be done well and in a timely manner. If you question your willingness or ability to manage this, you might want to consider hiring a property management firm.

How quickly are you able to get your unit rented?

Advertising, fielding calls, and showing the unit have to be performed in earnest to keep vacancies from eating into your profit margins. If these activities are not your cup of tea, or if you have historically had an unacceptably high vacancy rate, you may want to consider hiring a property management firm.

Can you handle the accounting and record keeping for your property?

From profit and loss statements to tax deductions, this area needs special attention and becomes an increasingly larger burden for larger portfolios. Some owners (especially those with a back ground in finance) will do just fine, others may opt to hire an accountant to help with the book keeping. If you feel like this might be a weak point you might want to consider hiring a property management company.

Are you willing to be on call 27/7/365?

It's important to answer this question honestly, because as a landlord you have an obligation to your tenant. Emergencies don't happen all the time, but when they do, you have to be willing and able to handle them immediately. Can you handle being called at 2 am to fix someone's overflowing toilet?

Are you prepared to deal with late payments and if necessary evict non-paying tenants from the property?

Many new owners are uncomfortable with being the "bad guy", and try to be understanding by making exceptions. The problem is, this only invites further abuse and excuses by tenants. Late payments should be dealt with immediately. Sometimes only a friendly reminder is needed, but in other cases it can be a very confrontational process ending in eviction. It's also important to know the laws governing this process to shield yourself from liability and lawsuits from delinquent tenants.

How well do you understand the laws governing land lording?

Making sure your property is run according to the law is critical both in preventing lawsuits, and in sheltering yourself from liability in the event that you are sued. Whoever is responsible for managing your property, whether yourself or a management company, needs to be familiar with these rules.

From a financial standpoint, is managing your property the best use of your time?

Your decision to hire or not hire a management company should boil down to whether or not it is a good fit with your lifestyle and is financially the best use of your time. Individual investors will have to evaluate the opportunity cost of both options based on their unique circumstances.

Want to learn more about the fees property managers charge for their services? See our article on property management fees.

For more resources about property management and to find local property managers, check out our directory of property management companies.

Anatomy of a Financial Statement - Property Management

Robert Kiyosaki likes real estate investing is because real estate touches each part of his financial statement. Starting with his best-selling book Rich Dad Poor Dad and continued in many of his subsequent books, Robert explains how real estate gives cash flow to his income statement and on the expense side of the income statement he's able to deduct the property's depreciation as an expense.

When seen from the balance sheet, he's able to gain appreciation on the asset side and the leverage provided by the bank rounds out the liability side of the balance sheet.

Through a property management company you can also access the four parts of the financial statement. Here's how:

Balance Sheet: Asset Column

Every property producing monthly rent is an asset. It is possible to sell the rights to manage the property to another property manager for a lump sum of money.

Balance Sheet: Liability Column

Robert uses his banker's money aka leverage in order to purchase a large property with only a small percentage as a down payment. When the property goes up in value he is able to keep the entire appreciation amount without having to share it with the bank. He can use leverage and still get the benefit of 100% of the appreciation.

In the property management business, leverage is achieved through controlling the income of a property. A property that is producing $500/month in rent gives a property manager $50 in income. If the manager feels that $500 is too low for the area, then her or she can increase the rents by 10% to $550 and the management company's income will go up 10% accordingly. How many companies can increase their income by 10% without a causing uproar among its clients?

Income Statement: Income Column

As a property management company, you take your 10% management fee directly off the top after the rents have been collected. Here again, if the manager feels that rents are too low, the manager simply raises the rent and increases the income to both the manager and the property owner. It's win-win!

Income Statement: Expense Column

While Robert Kiyosaki is able to depreciate the building as an expense, a property management company cannot take this tax advantage because a property manager doesn't own the building-the owner does, however, a manager is able to make money off the expenses incurred by the owner of the property.

Let's say that a tenant calls to say that the plumbing underneath the sink is leaking. The manager sends out his repairman to fix the leak. The repairman sends a bill to the property management company for the $12.00 plumbing parts plus $30.00 for his hourly rate.

The property manager now marks up the bill by lets say $10.00 and now charges the property owner $12.00 for the parts and $40.00 for the repair time. The $10.00 is for the manager's orchestration of taking the call from the tenant and sending out the repairman.

Now multiply this scenario by the management of 200 properties and you'll find that expense mark-up is a significant source of a manager's income.

As you can see real estate allows an investor to utilize all four parts of a financial statement. As a property manager, you can piggyback on the owner's shoulders and receive some of the same benefits of cash flow and leverage and you can actually profit from the property in ways an investor cannot i.e. expense mark-up.

And here's the best part -and the prime example of a property management's ultimate leverage: the manager isn't responsible to the bank for making the payments on the mortgage. The owner is responsible! The property manager is able to make money off the property without being personally responsible to the bank for the asset that creates all the money in the first place.

Property Management - Commercial Management

Property management is an ever growing need as more and more people are now opting out of buying homes due to aspects such as the increase in mortgage prices. Renting is now becoming the more popular way of gaining property. It is because of the fact that more of us are now renting property that that need for property management has grown so much. It should be noted that property management requires time, intelligence and good attention to detail as well as management qualifications.

Property management is the job of looking after the properties that people rent out. This is the same for residential and commercial property. Whatever type of property you have as long as you are renting it; you will be able to get the help of property a management team.

Property management companies have the responsibility to deal with multiple responsibilities and aspects of the management and ownership of real estate. The duties of a property management company is to negotiate and stabilise a relationship between the landlord and tenant. The duties performed by a property management company are pretty much the same if your property is a residential or commercial but here we are mainly going to be looking at commercial property. Whether your property is an office block, a retail store or a bar/restaurant the duties that a property management team will perform for you are:

o Collecting rent

o Handle your letting

o Asses potential tenants

o Administration services

o Maintenance of the property

Commercial property management is an essential aspect of the property market if you want to increase the appeal or value of your property. It will allow you to get on with your renting business while the management company gets on with the day-to-day running. The extent of the service that is provided by a property management team is as flexible as you want it to be; it can be used as much as you need it to be.

A professional commercial property management service maintains and raises the level of occupancy, which enables a steady income. This is because a property management company keeps your commercial property in good condition in order to bring in business for the landlord. Your commercial property needs good curb appeal. This is achieved through keeping the structure, landscape and parking elements of the property in a clean and welcoming condition.

Your commercial property needs to be kept in good condition in order to attract customers to use your business. You need to ensure that your property is in good condition to attract businesses to set up shop within your property.

If you have invested within the property market then you will want to ensure that you are getting the most from your investment, which is where commercial property management can help you. By keeping a well run and well maintained property you will generate interest within your business and therefore attract more custom.

If you would like more information about what a commercial property management team could do for you get in touch with an expert company today.

Property Management Fees Explained

When you hire a property management company to serve as the liaison between yourself and your tenants, you want to be sure you're getting the best possible property management services for the money. The services a property management company provides can range from ala carte to an all-in-one inclusive package. Along with that comes an array of fees for each. There is no set in stone fee structure we can provide you. But we can educate you on what common fees to expect and what each is commonly for. In the end it will be up to you to compare company fee structures and choose the best one that fits within your budget. Below are some of the most common fees and what service they provide.

Commission

This is an ongoing monthly fee charged to the owner to compensate the property manager for the responsibilities of overseeing the management of their property. This fee can vary from as little as 3% to over 15% of the monthly gross rent. In place of a percentage some managers may charge a flat monthly amount which again can vary from $50 to over $200 per month. All property management companies generally charge this fee.

Lease-Up or Setup Fee

This fee is charged to the owner to compensate the property manager for their initial time invested and resources used in setting up an owners account; showing property and/or other activities resulting in tenant placement. I guess you could look at it as a "finders fee" for placing a tenant in your property. Once a tenant has been placed and first rent income comes in, the property manager will deduct this fee from the rent proceeds. Some property managers have been known to require this fee upfront prior to tenant procurement. Usually this fee is non-refundable once the property manager has started the process of tenant procurement or any legwork has been initiated with the property. This fee can vary from none to as much as the first months rent, and usually is a one-time fee per tenant.

Lease Renewal Fee

This fee is charged to the owner when a property manager renews a current tenants lease and covers the costs of initiating paperwork or communication involved in implementing the new lease document. A property manager may also justify this fee if they perform a year end inspection of property. This fee can vary from none to $200 or higher, and may be charged every time a lease renewal is implemented.

Advertising Costs

Depending upon the property management company's contract, either they will pay the advertising costs or the owner or they could split the costs. If the manager is willing to cover this cost, most likely they will charge the lease-up or setup fee as outline above. If the management company covers this cost make sure to find out what type advertising or marketing of your property is included. If it's placing your listing on their own web site and other free online classified sites you may not be getting your monies worth. They are many good rental or tenant resource online web sites that bring in qualified tenants for a reasonable fee and you will want to consider these. And don't forget about print media, yard signs, listing on the MLS or even an open house. Nothing is worst than having your property vacant, bringing in no money only because you or your property manager skimped on advertising.

Maintenance Mark-up Charges

This is one of those costs you may never really of known about or had it disclosed to you. A "Mark-up" is a charge over and beyond the final bill on maintenance and/or repair work done to your property initiated by your property management company when using their vendors or in-house maintenance staff. This should be disclosed in your Manager/Owner contract which usually will state the markup as a percentage above the final invoice from vendor. For example, your manager had to call a plumber to replace the dishwasher in your rental property. Total charges for completing the job: $400. If your property manager contract states you will incur a 10% markup on all maintenance work the actual cost to you will be $440. Just one of those things to be aware of as these all eat into your profits.

Early Cancellation Fee

The dreaded "3 months and no tenant". Your property manager insist he or she's doing everything they can to find you a tenant. But here it is 3 months and still no tenant; what do you do. Well, look at your Manager/Owner contract and that might be your deciding factor. I am not a fan of this fee, and believe it to be an unnecessary fee and for you manager out there this could be the deal breaker. I'll tell you why; if a property manager is doing their due diligence and keeping the owners in the loop as far as decision making, market conditions and communication lines open an owner will not be second guessing his property managers abilities. The odds of this scenario happening is unlikely but you must be prepared for it. A cancellation fee can range from none to over $500. To be fair, some managers legitimately deserve this fee especially if they have pocketed advertising costs, incurred lots of legwork and time invested in your property.

Make Finding a Property Management Company Easier on Yourself by Askingthe Right Questions - Part 3

This is part 3 of a 4 part series where we have outlined important questions to ask a property management company before hiring them.

Series 1 Company Credentials
Series 2 Property Management Services
Series 3 Property Management Fees
Series 4 Tenant Screening Process

Rental management companies come in all sizes, capabilities and expertise. Just because one works for one investor does not necessarily mean they will work for you. You need to know some important questions to ask a company during your initial interview process regarding fees they charge for their services. The answers to these questions will give you a good grasp of the total management costs you will incur in exchange for the managing of your rental property. By knowing the answer to these questions before hiring them could prevent future misunderstandings and unforeseen expenses.

Series 3 - Property Management Fees

Unlike a real estate sales commission, there is no standard commission that is charged for rental management services. Usually you will see commissions ranging from 4-15% of the gross monthly rental income. In addition to a commission fee you could be looking at any or all of the following fees:

Lease-up or set-up fee
Lease renewal fee
Advertising fees
Mark up charges on repair work
Early cancellation fee
Service call fees..etc

Do yourself a favor and get familiar with asking the questions below when interviewing a property management company. After you are under contract with a management company is not the time too find out how much your expenses will be. And some of these fees can be negotiated to meet your needs.

Commission
How much do you charge as a monthly commission? Do you charge this if my property is vacant or only when occupied?

Lease-Up or Setup Fee
Do you charge an initial set-up fee, and when do I need to pay this? If I cancel prior to you placing a tenant in my property is this fee refundable?

Lease Renewal Fee
Do you charge me a fee when you renew a tenants annual lease that is soon to expire?

Advertising Costs
Who pays for advertising costs? If the property manager does, ask where they will advertise. If it means placing your listing on their own web site and other free online classified sites you may not be getting your monies worth. There are many good online rental or tenant resources that will bring in qualified tenants for a reasonable fee and you will want to consider these. Nothing is worst than having your property vacant, bringing in no money only because you or your property manager skimped on advertising.

Maintenance Mark-up Charges
Do you charge a "mark-up" or percentage over the actual costs of any repair work, service calls etc?
Just one of those things to be aware of, as these all eat into your profits.

Early Cancellation Fee
Is there a cancellation fee if I decide to cancel my contract with your company if after 3 months no tenant?
Note: If the management company has invested advertising dollars and lots of time and effort in searching for a tenant, they may well deserve to be reimbursed for their out-of-pocket expense.

All of the above are the most common fees to be charged for property management services. Asking these questions will make your job a lot easier when it comes down to hiring a company to manage your rental property.

Hire a Property Manager and Save Time, Money and Frustration!

In this post, I am going to explain to you how hiring a property management can help to save the owner more than just the price of the management fee. Let's say we have a home that rents for $1600/month. As a real estate management organization our average fee locally is 6-10%. Therefore, let's use 8% of $1600 which is $128/month. For an example our company only charges a flat fee of $75 a month for monthly management, however I'll show you the way a property manager can help to save above $1200/year by using a professional in the business.

Five Concrete Ways in which a Property Management Company Can Save Time and Money for an Owner

1. The very first way a management company can save you money is by maximizing rents. These management companies comprehend rental prices and what a tenant would most likely like to pay for a particular unit in a certain area. Property managers in addition have a footing on advertising and featuring. They know all the suitable areas to market and are available promptly to show properties to have them rented for the best conceivable price. On average a property management provider can help to save at the very least $50/month over 12 months which is already $600

2. The next method that can help you save money is by means of reducing vacancies. Your average owner will take approximately sixty days to fill a vacancy with respect to the current market not surprisingly. Utilizing a property management company, they average under 1 month. All over again, with an ordinary lease of $1500, the specialist will save you over 12 months $1600 because of this one area.

3. The 3 rd area a management company can save you money is by marketing. Real estate managers possess lower prices through internet sites and newspapers. They usually can save no less than $150 during marketing and advertising through 1 year as opposed to an individual owner.

4. Your fourth place to save you money is usually as a result of maintenance and repairs. The majority of property management organizations get access to vendors at lower rates. Our organization helps you to save approximately 30% the normal cost for an individual owner. For a typical single family house the cost of maintenance as well as repairs over one year averages around $250-$400 depending on the residence. Some of our more recent properties never have any maintenance in the course of the year, a few of older properties can have more issues throughout the year. Along with a 30% savings this saves the owner $75 to $150 over 1 year. *Our partnership with the regional title company has allowed us to provide our owners with discounted home warranties as well for older houses with estimated approaching repairs.

5. The fifth method is through selecting a very good qualified tenant through our screening process techniques. Many property management organizations have fewer than a 1% eviction rate as a result of in depth verification measures that they already have executed. The "bad apples" realize that they can't successfully pass a management company's screening process so they will rent through the individual owners and sell them regarding how excellent of a tenant they are going to be even though they don't have credit history, or no leasing references, as well as no Id, or even a large amount of additional reasons they use. This on its own helps you to save the owner the price of eviction which within our region averages around $1,000, the price of loss rent of about 1 month of $1,600, plus the expense of repairs of approximately $1,500. This thorough screening practice on its own can help to save the owner $4,000!

The majority of owners mainly think about the management fee that they're losing but not concerning these 5 areas which a management company can help to conserve them money. Along with these typical estimates above, a professional management company can help to save the owner more than $6,000 in a year.

Vienna Property Management, Rocklin Property Management in Rocklin CA specializes in Single Family and Multi Family residential real estate management. Scott Schuhwerk of Vienna Property Management has vast experience in professional residential property management and tenant placement.

Is Starting a Property Management Company Right For You?

This article discusses whether starting and developing a Property Management Company could be for you or not. There are some personalities that this business is suited for, and equally some that are not. I will discuss each characteristic that lends itself well towards being a Manager, and more importantly doing it as an Entrepreneur. Below are the Top5 characteristics that will help you become a successful Property Management Business Owner:

1. Attention to Financial Detail. This characteristic is perhaps the most important detail for this business. Managing properties, especially once you start growing and increasing the number of properties that you manage, requires the ability to keep track of every penny. And believe me, as you grow, there will be a lot of them.

Think about it, if you have 50 properties averaging $1,000 per month in rent, you are then collecting $50,000 every month to deposit into bank accounts. Then from that $50,000, you are paying some utilities, mortgages, then disburse the remainder to the owner, etc. Now, I haven't even mentioned that 10% of the rents you have to collect will not pay on time. So you have to be very good at keeping records of those monies received and not received as you progress through the monthly rental cycle, not to mention applying the appropriate late charge to the specific account. As you can see, having a background in financials or accounting can go a long way in property management. And don't let this article scare you, just consider this more of an awareness of the field.And don't worry, it can be learned the hard knocks way, we did.

Once a month you will be required to reconcile your bank account statements to your accounting programs. If you are off even 1 penny, that is a problem. You will need to find all errors and maintain your books on track 100%. Many states actually regulate this activity with random inspections.

2. Excellent Communicator. This characteristic is just as important because Property Owners rely on you to communicate to them the status of their property more than just receiving a monthly property operating statement. They should be contacted by you personally at least once a month to let them know, at a minimum, that everything is going well with the property. Also, keeping in good contact with them allows you to further develop your relationship with them. Because if you don't, your competitor will.

This business deals with many time sensitive matters. If you are someone who procrastinates on getting back to people, then you will make enemies fast. Property Owners want to be heard back from you relatively quickly. In fact, this is the number 1 reason why we have picked up a lot of business. Larger companies allow their Managers to take on far too many properties than they should and they become bogged down and are not able to give the personalized service to Property Owners that they deserve. Tenants also, need to have a certain level of customer service in getting maintenance items repaired, etc. A good Property Manager will promptly return phone calls and emails.

3. Are you a people person? Kind of a vague question, but the bottom line is that you will be around all kinds of people 24/7. You will challenged with domestic problems, money problems, families that just had a baby and now cannot afford the rent. There will be a new challenge almost every day. Are you the type of person that can take on these issues and help solve them without getting too involved. Can you, at the same time, be able to file an eviction on that new family? This is a 'for profit' business and you cannot be in the business of charity. I know that seems harsh, but it is the reality of the property management business.

Lastly in the people person section, you will be making "sales calls" on Property Owners. And as such, you will need to be able to modify your personality to fit that of your Prospective Property Owner.Many people are good at being a Property Manager, but they are not so good at the people and sales skills and as such have a hard time getting business. However, let me say too that sales in this industry is a learned skill, it does not come natural.

Building and fostering long term relationships are very important in this business. You will be taking care of properties for your Owners for hopefully years and years. This is not like being a Realtor in that you will work with people for a couple months and move on. You will need to work on earning trust in your Customers and continuing to build on that relationship over time.

4. Are you a problem solver? As a Property Manager, all you have is problems. Tenants call you for one reason and one reason only: they have a problem. Either the window is jammed, or the neighbor is bothering them, or they can't pay rent. Either way, you will be plagued with problems. You will need to be someone who handles these "problems" as opportunities and deals well this type of stress.

Additionally, as you build your number of properties, you will need to be an excellent multi-tasker. More properties equals more Tenants which equals more phone calls. However it also equals more money, so bear that in mind as well! When you get big enough you can then look to delegate these responsibilities, but starting out many times it is a one person show.

5. Are you OK with paperwork...and lots of it?The first of the month is a very busy time for Property Managers, this is when you are collecting rent monies and disbursing funds. Also, you are creating monthly reports and sending them out to the owners. On top of that and throughout the month, you will have discussions with Tenants that will need to be documented. Discussions that relate to tenancy, following up on a request you made to them, or financial matters will need to be documented to properly protect yourself and the Owner. If you are not good at follow up with your communications, you could lose that conversation and if the Tenant took you or your Property Owner to court, since you didn't properly document the conversation, you could lose. The courts always favor Tenants when the Landlord or Property Manager don't follow the laws (or appear to not follow the laws because of lack of documentation). Documentation and administration is again a critical part of the communication aspect and can sink your ship if not percormed correctly.

There is one more characteristic that is paramount in any business, not just Property Management. That is being very positive and not listening to the nay-sayers. Other people will always try to burst your bubble. You will have plenty of days when it doesn't seem like building your own business is even possible. Persistence is the key to any business, and it can only happen when you are positive.

In summary, I wanted to highlight those characteristics that could become a challenge in becoming a Property Manager. If you see some of these qualities as being a challenge with you, it doesn't mean you couldn't become a Property Manager, it just means that you have an opportunity for improvement. Property Management definitely is not for everyone, is it for you?

Significance of a Property Management Business

Property management is typically a cumbersome task that can not only eat away a major portion of your precious time, but can also burn a big hole in your pocket. By hiring a good Westminster (and surrounds) property management firm, you can protect yourself from all the intricate hassles that are associated with real- estate management. Additionally, you can also increase the value of your investment. Here are 7 more reasons to engage a reputed property management company.

1. Do you have time to manage your property?
   To prolong the life of your acreage, you would have to regularly inspect it to find out the areas that need repair, and thereafter, you would have to initiate and supervise the rehabilitation work. If your property is closer to your residence, then, to an extent, regular visits can be managed. However, if you live far away, then you'll be tempted to keep your eyes closed due to shortage of time, and negligence can be a recipe for disaster. A good Westminster (and surrounds) property management firm can proficiently deal with all the upheavals without your assistance.


2. Do you know how to cope up with tenant problems?
   No matter how tolerant you are, tenant problems can easily cause you unnecessary stress. Experienced property managers knows how to deal with irrational tenant activities such as:




• Prepare the property for the next tenant


• Find out what is the best rent rate for your estate


• Market your property extensively




3. Are you well-acquainted with the procedure of evicting and finding tenants?
   Tenant eviction is a complicated process, which should be handled delicately. If done incorrectly, you can find yourself in the centre of a ghastly legal muddle. A first-rate property management company has in-depth knowledge of rules and regulations pertaining to tenant eviction, and for this reason, it can carry out the process smoothly without any legal hassles. The process of finding new renters is equally complex. A superlative property management firm has the expertise to examine and evaluate thousands of applications within a short span of time. The flawless screening process helps in the selection of a tenant who would use your property appropriately and pay the rent on time.


4. How much experience do you have with property renovation and rehabilitation?
   Prior to the arrival of the new renter, you have to ensure that all the broken items have been replaced, cracks and crevices have been repaired, and floors and walls are dirt-free. All these deeds are not only time-consuming, but also expensive. By engaging trustworthy property management firm, you can take the burden of house maintenance from your shoulders. The company has in-house maintenance staff who have extensive information about the latest building techniques and construction materials. In addition to this, the firm also has access to a network of independent contractors who readily provide top-class services at an affordable price.


5. Are you willing to be available 24-hours a day and 7-days a week?
   With a dependable property management firm for your Westminster (or surrounds) property on your side, you can lead a stress- free life. The company will represent you 24-hours a day and 7 days a week. Apart from handling day-to-day work, it will also competently tackle emergencies that usually arise in the middle of the night.


6. Do you have thorough understanding of property laws?
   As the owner of the estate, you are expected to abide by the property laws stringently. However, if you're not familiar with the law, you are bound to get trapped in one of the many loopholes. A property management company, on the one hand, can protect you from lawsuits, and on the other hand, it can ensure that all the rental and lease agreements are up-to- date.


7. Do you have the capability to handle all the financial aspects of your property?
   From tax to insurance, a good property management company can handle all the financial aspects pertaining to your real estate dexterously.

The Benefits Of Property Management

Countless landlords elect to manage investment properties by themselves but occasionally landlords require more assistance, and that's where a property management business will make sense.

Management companies work directly with potential and existing tenants, helping you save time along with marketing and advertising your current rentals, collecting rent payments, dealing with routine maintenance and repair problems, answering the different renter issues, and in many cases seeking evictions. A property management service can help you stay away from the headaches of being the property manager and concentrate on experiencing and enjoying the rewards.

Why you need to retain the services of a management company?

A management firm will primarily be dealing with the maintenance of your investment property or home. Just about all properties need routine maintenance however if you have a paying tenant you are required to solve maintenance problems immediately. Normal property maintenance helps keep the value of your investment property up and in many instances keep your property safer. This can really help you save cash over time since it will increase the life of your investment property.

Based on the age of a home you will probably discover more problems. For this reason it is very important your property is carefully examined prior to tenants moving in. Any issues that are found will be fixed in hopes to reduce the amount of problems and complaints which will arise once the property or home has been leased out.

There are many types of property maintenance which will need to be examined and this maintenance vary from becoming major issues like roofing repairs to small jobs like interior painting, carpentry work along with yard projects.

When should you employ any management company?

*You do not live close to your rental property.

If the rental home is located far from where you live, working with a property management company may be important in working with the many challenges that you won't be able to manage from very far away.

*You just are not serious about hands-on management.

A number of property owners enjoy the challenge of locating good renters and the advantages of having a secure and desirable property or home on their own. However, if you look at rental property ownership purely being an investment and desire little or nothing regarding the day-to-day managing of the properties, think about employing assistance to manage your property.

*Your time and energy is limited.

Even though you appreciate hands-on management, you might not have enough time to be able to spend on your business, particularly if land-lording is not your day job.

Getting a property management company is definitely an appealing option if you're able to afford the service fees. Many companies charges you a percentage of the rent or lease, while various other property management companies charges you a flat rate fee.

Should you decide to retain the services of a property management firm, be careful in choosing one and ask questions to evaluate the services provided.

Queries About Property Management

The decision of allowing a third party to manage your property is not always a simple decision to make. It can be quite difficult if you are a first time investor. However there are certain benefits that come with hiring the services of a property management company. Managing your property personally can make your entire life very miserable. But hiring someone to do it for you leaves you with a lot of free time and you can use the free time to close more deals. Before hiring any property company, you should ask yourself a few things and they include the following;

Cost of the services. The cost charged will vary from one state to another. Some of the management Fort Worth companies will charge as low as 4% of the gross rent while others will charge as much as 12 %. Hence you should understand the cost before hiring a property management company. If the cost is not ideal for you and your property, then drop that company and look for another.

Properties by the company. You should ensure that the company manages rental apartments that are like jut the ones you have. You can do a thorough research on the type of properties they have managed and this will help you know the credibility of the company. If you are not sure of the management company, Google it and check out their profile. After all if you are to entrust someone with your property, then you might want to know more about that person or that company.

Method of fee collection. You should know when the fees are to be collected. This will allow you to prepare on time. You should also ask the property management Fort Worth managers whether the fees will be deducted directly from your bank account or not. Some of the companies collect their fees quarterly while others collect annually. Hence you should be aware of the fee collection methods.

Advertising methods. Advertising methods used by the property managers should be effective. Therefore you should go for the property management company that has effective advertising methods. This will make your property to attract the best buyers.

General efficiency. The property management should be efficient in all ways. When a client vacates the premises, it should take a very short time for the apartment to be cleaned and rented out again.

Hiring the services of a management Fort Worth company will help you increase your overall profits. This can be as a result of reduced cost of managing the property. When you hire the services of the property management Fort Worth companies, you will have a lot of free time and you can use this free time to close more deals that will get you more property. You can even relocate to another country and let the property management experts run all the errands for you. If you are incurring a lot of costs while managing your property, then you might want to consider hiring the services of a property management.

What Does a Commercial Property Management Company Do? (Part 1)

Have you ever wondered what a commercial property management company does? Or better yet, what they should be doing?

If you're asking either question and reading this article, then it's safe to say you probably own commercial real estate or are considering purchasing commercial investment property. The answer to this question is simple, "Whatever you want them to do". Ok, it's not that simple. Practically speaking, the range of service varies quite a bit from company to company, depending on who you speak with. However, there are some basics that are essential and necessary regardless of your reason for needing or wanting professional property management. In this article you will find the answers to what you should expect from a commercial property management company.

The basics:

Accounting Services

Reporting- Monthly accounting reports that include, a balance sheet, income & expense statement, general ledger, rent-roll, rent ledger, expense ledger and a copy of the bank statement are the basics. There are various other reports you may want or need depending on the property and ownership type. For instance, with a self-storage property you will want in addition to the above, a copy of the audit and daily deposit report.

Narrative Report- This is a narrative monthly summary of exceptions in the budget, income and expenses or any unusual activity on your property, this report should be prepared by the property manager responsible for your property.

Collections (AR - Accounts Receivable) - Collecting rents and other monies owed. This function is generally considered an accounting function, until the point there is a problem (which is quite frequent these days). You will want a company that has a clearly defined process and system of responsibilities when it comes to collections, ask them, Who? - who will do what in the collection process. What? - what will be done. When? - when will it be done.

Payments (AP - Accounts Payable)- Now that they have collected your money, you will want them to pay the bills. Again, you will want them to clearly define, Who, What and When this will occur. You may want to define for the accounting staff the details on payment of your expenses, including when and how much to disburse to you, as well as other details such as reserves for taxes, insurance or capital improvements.

Lease Processing - This task is generally a group effort, with a defined patterned or specific routing to a number of people within the company, including the accounts receivable department and property manager. Each has a specific function and items they are looking for. However, one person generally inputs the lease into the computer. This part of the process is extremely important, as a missed date or dollar amount could result in serious repercussions down the road. Detail and a process that includes multiple layers of people checking the input process is Key.

Management Services

The Property Manager - This person is "One" of the focal points by which you make your decision on whether you hire a company or not. The property manager is the person that will make the critical day-to-day decisions that go into operating a property. Their responsibilities include - relationships with your Tenants and Vendors, physical condition of your property, oversight of the collection process, payment of bills, budgeting, lease administration, monthly reporting, generally all aspects of the operation of your commercial real estate. Most importantly they will be your contact and source of information about your real estate investment. Make sure you feel completely comfortable with this person and their abilities.

Site Visits - site visits are a critical part of any property management contract, minimally you want your property manager on your site once per month, weekly is preferred. Many things happen during the course of a week on a commercial property. The frequency of the managers' visits will depend on the type of property they are overseeing. The purpose of the property managers' visit will vary from property to property as well, however, here are a few tasks your manager should attend to while on your property:

• Checking Vendor performance


• Checking for Maintenance / Health and Safety issues


• Be seen and talk with Tenants (this topic needs more discussion than is possible in this article)

Well, those are the basics of What a Commercial Property Management Company Does - remember you have a choices and your choice on the company that manages your commercial asset has a profound impact on the success of your commercial real estate investment.

Property Management Issue - Hire A Property Management Company

Property is the biggest material asset a person has. If you have some properties, it is very good for your financial security. Manage your properties to make them as lucrative as possible. But managing properties is not as easy as it sounds. This is the 21st century and is a market driven world. People remain busy in their life and do not fond time to focus on these issues. So, they prefer hiring professional property managers to get managed their properties.

Property management company is basically a liaison between the property owner and the tenant. The company provides comprehensive management of all your properties. The company will help you in selling the property and in rental management. The professional dealers have knowledge about the current market trend and will let you find suitable customer who can offer you maximum amount. The company will also look after the paper work related with the sell of property or in renting the property to the tenant.

The main need of the property management companies are felt when you have to rent the property. Renting property is really a big task. You have to find the suitable tenant and rent the property after accomplishing paper work. Renting does,t not means finding a rental and put the house or office on rent. You have to take care of many things. The tenant must have good and fair background. You have to make rent agreement. You also have to collect the rent monthly and look after the maintenance of the property. All these tasks can be handled by only a professional rental manager. They will do all these tasks and collect the monthly rent and will deposit in your account. The issues of renting and collecting rent will be solved with their assistance. Professional property management companies also look after the maintenance of your properties. They send their staffs time to time to your place to see the condition. If there is some deformity, they arrange repairing.

This service is not only helpful for the property owners but also for the tenants. Tenants can visit the property dealers and can find the desired space easily. They can get good ranges of flats, shops or offices. They can make choice according to their budget. In this way, they are good and an important part of the society. They render valuable services. However, the property is basically meant to help property owners. So property owners hire the services offered by professional property managers and make the profit.

Reasons Why You Need to Hire Property Management Company

There are very many reasons as to why a person may need the services of a property management company. One of them is to allow the people who are professionals manage your property hence minimizes the chance of loss of investment. If you live in Dallas Texas, then you are familiar with all the major property management Dallas companies. There are very many property management companies and this has indirectly increased the investments by people as they can now rely on the property management companies to manage all their properties for them. However there are more reasons as to why people opt for a management company to manage their property rather than do it themselves. Some of these reasons include the following;

Rent- a professional property management agent has systems that are aimed at making it easier to collect the rent and ensure that the rent is paid on time as well. This will in turn ensure that you have a steady cash flow which is very vital for anyone who wants to become a successful investor.

Financial records- the property management companies will do all the hard stuff for you. They will keep all the necessary records which include the end of year tax returns and they will also manage the security deposits for you. This makes your work easier and you can concentrate on making more investments and hand them over to the property management Dallas for proper management.

Eviction- in the worst case scenario a tenant might refuse to pay rent anymore. Such tenants can be a real headache for any person. Evicting them can prove to be even harder. However if you have a management team working for you, this should not be a problem as they will handle everything on your behalf.

Freedom- the best thing about having a property management Dallas company manage your property is that you don't have to live in the place where your property is located. You might even take a vacation or relocate to another country where the weather is much friendlier and not worry about your property as there will be someone managing your property on your behalf.

Cost- the cost of managing your own property is very high. The costs of hiring staff members and accountants to do all the book keeping can drive your profits down. However if you hire the services of a property company, you will be assured that your property will be managed efficiently and at a very low cost. What happens is that the property company charges a fixed rate on your rent collection. Hence if you are making over $10000 per month in rent collections, the property company might be charging you 3% of that which is $300 per month. Imagine how much you would be spending on a monthly basis if you managed the property all by alone. It would definitely be much more than that.

Bradford features complete information and facts, listings, and trustworthy expertise on property management Dallas. To learn a good deal more regarding all the commercial properties in the DFW metro-plex, drop by www.bradford.com and get in touch with one of the top specialists in Dallas commercial real estate.