Purchasing property to rent can be a good investment. It may provide a source of steady income as well as possibly building your personal portfolio. If you own a number of properties that you plan on renting out, you may need to hire a property manager because the time needed to maintain and care for all the buildings could become too consuming. Here are three tips for hiring a good property manager.
1.Make sure that you hire a licensed property, manager. Licensed property managers have taken a property management course and passed the state approved licensing exams. A licensed property manager will have a good system in place to collect rent and security deposits, and will be better prepared for handling issues that arise out of your properties.
2.During the interview process, go over a list of properties that are currently being managed by the property manager. During the interview, ask the property manager if there are any other properties that they manage. Take a look at these properties yourself and judge how well they are being taken care. You don’t need to go inside the actual apartments, but you can walk through the building.
3.Discuss the management fee during the interview. You want to hire a property manager who isn’t going to rip you off, but at the same time one that asks for a decent cut of the total monthly rent because it tells you that they will take their job serious. There isn’t a steady rate for property managers, and the rate is going to depend on your market, but on average the fee percentage will range from 8 to 10 percent.
Christopher Prashad is an experienced property manager in Jamaica, Queens, New York.