Owning one rental property is exciting and rewarding, especially when you have an extra stream of income coming in. While it hardly, if ever, requires the occasional routine maintenance, it’s almost easy money. However, when you own multiple rental properties, your time soon becomes consumed by handling all of the aspects of being a landlord, as well as collecting rent, and ensuring that the property stays up to standards.
Many landlords soon find that they may reach a plateau; in which they can’t seem to overcome the hump to make more money, and to add even more properties to their portfolio. If this sounds like you, or if you have multiple properties that needs some extra attention, consider hiring a property manager so you can focus on more important things. But before you do, make sure you take the following criteria into consideration:
- Make sure they’re licensed
Before you can hire a property manager, you need to make sure that they are licensed. In order to become a licensed property manager, they must take a state licensing exam to become recognized as a property manager, or a property manager in charge. The difference being the property manager in charge can run their own business as well as manage other property managers if need be.
- Ask to see their portfolio
Some property managers will be reluctant to offer their portfolio of properties they are currently managing; but if you can get them to spill the beans on the properties that they are managing, you can quickly get an idea of how seriously they take their job.
- How much are management prices
Management prices may vary depending on the market area, but on average, you can expect to see a range of an 8 to 10% cut from you’re properties’ rent. While it seems steep at first, consider the fact that other than the occasional meeting with the property manager, much of your workload has been released from your clutches, leaving you to take care of more important matters; such as searching for more properties to add to your portfolio.
- Ask them how they handle common repairs and routine maintenance
Some property managers will deduct a certain amount from your payment in order to cover a common repair and routine maintenance. Others will simply send an invoice to you should a repair or maintenance be needed. If this is the case, be sure to reach an agreement on how much the manager is allowed to spend on your behalf.
- Reach an understanding and sign the contract
After you’ve researched your possible candidates for the position, is time to sign on the dotted line. Be sure to keep a copy of the contract if you don’t already have a copy that way you can refer back to it for future reference; should a problem or question arise
Hiring a property manager can quickly unlock time that would otherwise be spent taking care of tenant problems and routine maintenance, but you can’t hire just anyone to do the job; you need to make sure that they are licensed and qualified for the job.