This is part 2 of a 4-part series, we find major issues presented to a property management company before setting to ask them.

1 Series Credentials companies
Series 2 Property Management
Series 3 Property Management Fees
Series 4 tenant screening process

Management companies are the property of all sizes, capacities and know-how. Just because you work for an investor does not necessarily mean they will work for you. Below we have highlighted some important questions to ask a company during your first call on the services they provide. The answers to these questions provide insight into their business skills and understanding of the nature of the services they provide are important to you are.

Series 2 – Property Management Services

Properties that they manage – Corporate Property Management are as varied as car dealerships to each other. For example, a Mercedes have the best equipment and knowledge of the latest selection of new Mercedes. Are you visiting your local Toyota dealer, but chances are you will not find what you are looking for. Of course they want to be your business and try to tell you about the reasons why Toyota is a good solution for you in a Mercedes.

Even with property management, they are not equal when it comes to their real estate portfolios. You must be wondering what types of properties they manage and ensure that your property is a type that manage them. If you have a house, a company that would be the most large apartment buildings or commercial property, not a good game to be managed. In this case, your best game of a society that a minimum of 50% or more of single family homes in the rental fleet.

Some companies manage all types of investment properties … Houses, apartments, commercial and municipal associations, but chances are they are a specialty in one or two areas.

Inspection – A thorough inspection of the property should never be overlooked by a property management company. An inspection of the property must be completed for tenant occupancy and relocation. An inspection of drive-bys can make an appointment or through a video inspection area. In case of disagreement between the tenant and manager to the missing or damaged, the actual documentation in the inspection and movement of the images before and after
hold validity in terms of an oral agreement. />
A video inspection of the interior and the exterior of the property is the best option. The photos are good, but sometimes do not understand all areas of the house. The video will not only identify all areas, but is easily interpreted and validated that the subject property. A signed checklist valid assignment of the tenant consents to the tenant of the results of these checks.

Maintenance – When it comes to maintenance or repair their property, rental property managers have their own in-house maintenance staff. They are generally employees of the company and receive an average salary increase of the company. Cost or the hourly rate for maintenance or repair is required will be dictated by the management company itself.

On the other hand, may decide the management company to outsource all or part of the maintenance work outside suppliers. These providers can be a craftsman, a dealer as a plumber or a large institution that carries out all types of maintenance work.

There are advantages and disadvantages to both and I do not support each other, but to give an overview of some points of interest:
In-house maintenance

Advantages:

- More easily accessible, since they work in the management
- Direct communication with the management company and its policies
- More intimate with the property … they are “a” and know the history of your property

Disadvantages:

- Maybe a “craftsman” rather than specializing in a particular area and the appropriate licenses
- Can not intended to perform or complete the maintenance work on time, as he / she is not paid on the basis of jobs. If he / she ends in 2 hours or 8 hours, its all the same.
- If the team in home repair service is not available, either or waiting for the company to an external supplier in the short term search

Maintenance

Advantages:

- This is the property management allows the luxury of calling for competition between providers, which could reduce the cost
- Suppliers will be willing to contract with a property management business can sign that stable care for them, and so should the quality of the work carried out in a timely
- Most vendors have all dealer licenses, certificates, insurance and tied

Disadvantages:

- Some property managers or a surcharge increase above the actual cost of repairing their time to cover this purchase offers
.
- If work is not completed correctly, it can be difficult to get the seller to the

work.
Another possibility is to coordinate all the work yourself work. It can work for you when you reliable suppliers with whom you work and have are reliable. You can probably save some money, but it will need a little time on your side.

Financials – The most complete property services management company of a line of traffic a certain type of accounting methods. This usually comes in the form of a monthly paper statement of all income and expenses flow through the management company on your property for that month. It shows rental income and expenses such as management fees, repair costs, lawn care service, advertising costs, the cost of lease renewals and any costs. The demands of the owners, also called the network must be shown clearly on this statement. Monthly statements are generally sent monthly to the owner and a deposit check for the network. You must also include a statement about the end of the year with a 1099 made for tax purposes.

With the advancement of online technology for many management companies offer their owners the opportunity to view and print their monthly statements on the company website or online portal. These portals have the option of other documents such as contract management, supplier invoices, pictures of the property, test reports, etc. .. save at your finger tips.

Another great advantage of working with a property management company intuitive ability, automatic deposit of your monthly check to implement. No more waiting at the post office can deposit your checks are deposited directly into your bank account. Chances are they have the opportunity to set up automatic debit of the rent the tenant or a checking account or credit card.


Property Management Accounting