EVERYTHING YOU NEED TO KNOW BEFORE HIRING A PROPERTY MANAGEMENT COMPANY
an interview with Rodney Trepess, CEO: All Property Management
Do you want to maximize your profits on your rental? Then hiring a property manager might be the right step for you, according to Rodney Trepess who runs an online property management referral service.
“Often, the property management company has a higher opinion of what a property is worth than the owner. Rent comparables aren’t widely available to the public, and the management company has experience to draw upon,” Rodney explains. “The property management company gets paid on a percentage of rent, so they have a built-in incentive to charge the highest possible rent and achieve the highest possible occupancy rate.”
But it also comes down to asking yourself just how organized are you.
Rodney suggests you need a manager if:
You live off-site, especially out of town.
You are not good at record-keeping.
You are slow to raise rents or unsure what the rates are in your area.
You wonder what the vacancy rates are like in your area.
Your property is in need of some maintenance.
You have more than 15 units.
“And it’s about minimizing risks,” Rodney continues. “Property management companies have expertise in finding tenants. Many owners are in a hurry to rent, so they meet one or two prospects and hope for the best. A bad tenant causes damage and depreciation of your property.”
The decision to hire a manager is easy. The tough part is finding the right one. National companies may have the best network of resources, but current software can help the smaller companies compete effectively. “Don’t choose a company just by price,” Rodney suggests. “Sometimes there are hidden “add-ons” to the low price. Besides, that’s no way to pick the right manager. Meet face-to-face and consider how available the person is. Responsiveness is a higher priority. Find out if they have experience with your type of rental. Always get references.
Rodney’s online referral service is free to property owners at www.allpropertymanagement.com.
Interested in more tips from Rodney Trepess? This exclusive interview is included on the American Apartment Owners Association’s CD series, Real Estate Investment Secrets, twelve exclusive interviews with industry experts that will supercharge your ability to locate the best investment properties and manage or sell them for maximum profit.
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