Thursday, September 05, 2013

Good To Know: Property Management

For father's day, my oldest son brought home a school project as a gift for his dad. It was a "newspaper" with the headline of my husband being recognized at the #1 dad.

"What I like about my dad:
  • He rides dirt bikes
  • When he's not working, he plays with me
Things to know about my dad:
  •  He's a mechanic
  • He works a lot
  • He's a farmer"
People get involve with investing in real estate for different reason but always to improve their current situation. We are doing to have more time, so that we can dedicate it to our children. Because freeing up our time is our goal, we are choosing to use to services of a property management. Of course for our property that are not located in the same province where we live, a property management is also a necessity.

In real estate investment, many people get dazzled by the extra money self-managing can bring. There is also a lot of tired landlord that give up on the financial benefit real estate investing can provide because the cost of their time was too high.

It is important however to select the right property managers. Here are questions I ask my potential property managers. 
  • What is their process for rent collection and delinquencies?
  • What can they say about the local rental market?
  • Are they up to date with current rental laws and building codes?
  • What's their plan to market your properties?
  • What is their schedule for inspection of your properties? How often do they inspect it? (I require that the property is viewed at least once every three months. Potential tenants should be made aware at the time of the application, we will be checking the batteries of all fire alarms at that time)
  • Do they have established relationship with suppliers and tradesmen?
  • What are their fees? (normally I plan for about 10% but I've seen them vary from 5 to 15)
  • How do they screen their tenants?
Using the services of a property manager will mean that it will be that little bit harder finding properties that will be able to support the extra expense. It is my feeling that the piece of mind and freedom of your time is well worth that hassle.

If you are currently self-managing and utilizing the services of a property manager is not an option for you, be sure to catch next week's good to know for some tips on making that task easier.