Those who are experienced in real estate investment know that the risks are generally rooted in vacancies, missed rental payments, and/or necessary repairs. Having an effective property manager can help mitigate risks and are essential for getting the best ROI out of your properties. As an investor, it is important to find the right person for the job and keep tabs on how they play into the efficiencies of your real estate portfolio. Many novice real estate investors learn very quickly that there are a mind boggling number of issues that they end up encountering through the duration of their ownership. Good investments should never lead to headaches and sleepless nights, so it is critical to have the property management aspect well taken care of.
Responsibilities
So, what are property managers responsible for exactly? Their tasks are mostly involved in the day to day operations of the property. This includes collecting rent, ensuring proper upkeep, tending to emergency repairs, and making sure rental prices are competitive in the local market. Effective property managers possess extensive knowledge of state and federal laws for safety standards, handling security deposits, terminating leases, and conducting evictions. Some states even require property managers to have a real estate broker license to legally enact these duties. Getting the right person for this job will lead to less headaches in the long run.
Can you do it yourself?
The answer is yes! If you are able to be around your properties in person, it is very doable to collect rent, handle repairs, and find new tenants yourself. This can save the 10% fee of hiring someone else. If self management is not up your alley, however, then you should hire someone. In situations where your investments are out of state, it is required in most municipalities to have someone local to oversee the property. When looking to find the right person for the position, it is recommended to have a thorough vetting process, rather than finding the cheapest price.
How to find a good property manager
Creating relationships and networking are the best ways to find someone you can trust and do the job effectively. If you are embarking on a search for a property manager, it is important to know how to vet candidates and understand who would be a good fit for your portfolio. The three most important aspects to scout for are their professionalism, legal knowledge, and the conditions of the properties they manage. It would be good practice to drive by their properties and see how well kept they are. When interviewing them, they should show off their expertise in security deposit laws and tenant’s rights to dispute conditions. A good candidate also explains their strategies in finding the best tenants and reduce the vacancy rate. Asking about the properties they manage will also inform you about their expertise with local real estate. These attributes are key to insuring smoother operations within your real estate portfolio. A bad property manager that is tasked to take care of delinquent tenants is a recipe for disaster. Being an effective mediator between the owner and tenant while limiting owner liability is essential to keeping stability for your investment.
East Bay Investments
We here at East Bay Investments understand how important it is to maintain properties and the costs that come along with that. Our experience in property management is an incredibly valuable asset towards meeting the ROI projections in our investment proposals. We make sure that all of our properties are well maintained and build good relations with our tenants. If you are interested in working with us and expanding your investment portfolio, give us a call!
510-344-6368
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