A property management company helps to maintain a residence and its occupants without the owner’s daily input. If you’ve invested in multiple properties, there’s a good chance you’ll need their help with upkeep and covering costs. 

Every company is different, however, so you can’t go in assuming they’ll handle all of your needs. You also don’t want to end up paying too much for too little. 

Here is some of what to ask your potential property manager before you pay for their services.

1. What Services Do You Offer and What Are Your Prices?

One of the first property management questions you should ask is how much each of their services cost. 

Not every property management company offers the same services at the same prices. Write out a list of everything you need from them before you meet. And make sure to ask about their various fees. 

2. How Will You Fill My Property?

A key job of property management services is keeping your real estate occupied.

Ask the manager what kind of platforms they use to advertise and how they plan to utilize them. Will they require you on-site for viewings, or will the property manager handle it all? 

Also, consider how they screen tenants. Their methods may not create as inclusive an environment as you desire. 

3. How Do You Calculate and Collect Rent?

The property manager will be in charge of coming up with rent, so it’s important that you’re on the same page about your property’s value. They should take into account multiple factors to find the maximum rental income. 

It’s also important for the company to use a modern and efficient method of rent collection. Cash can be misplaced, and checks can bounce. 

4. Do You Handle Repairs and Maintenance? 

Repairs and maintenance can take up a lot of time for real estate owners. Even if you like handling the contractors and repairs yourself, it’ll become way too much to deal with alone as your real estate portfolio grows.

Instead, hire a property manager who offers maintenance services in one of their plans. It may cost a little extra, but you’ll save big on time and money down the line. 

5. What Are the Termination Conditions?

Not every property management company is going to be the right fit for your real estate empire. Especially avoid any that offer a lengthy contract with various cancellation fees. 

Most services offer monthly payment plans with easy cancellation. You also want to avoid giving them too much power over your properties, such as requiring you to list through them. 

Hire the Right Property Management Company

These are just a few of the questions to ask when choosing a property management company. It’s important that you hire one that you can trust to manage your real estate as well as the people living and working in them. 

If you need help with selling your home or searching for a new property, check us out. Outland Real Estate services the Central Coast of California. Contact us to learn more.

You already know that real estate is a good investment. Why wouldn’t you buy a property if someone else can pay off the mortgage for you? But you also know (and have heard) that some tenants can come straight from hell – and you don’t want to experience that when you’re using these properties to build wealth. So how do you keep your property management costs low, without doing everything yourself?

We’ve got tips and tricks for you (including when you should hire a property manager), below.

Should You Hire a Company or Do it Yourself?

This is the question most beginning real estate investors ask themselves and the answer depends on a few different things.

First, how close do you live to the property? If you’ve bought a property within the city you live in and are retired or make your own hours, then you can likely handle the property management of one home.

But if you live in New York, for example, and have a rental property in central California, then trying to do it yourself is going to be a bigger headache than it’s worth.

Second, do you have the skills it takes to be a property manager? Not only do you have to have basic fix-it skills, but you need to know how to handle large sums of money, and provide timely customer service. If you’re too busy to respond to your tenant within an hour, then a management service is the right choice for you.

… But What Does a Property Management Company Do?

That’s a good question. A property manager is your eyes and ears on the ground when it comes to your central California property. Not only do they collect rent and create lease agreements for your current tenants, but they can help you find new tenants and even sell your property if the time is right.

Property managers can also deal with repairs, both emergency and normal property breakdown issues, including contracting landscapers, etc.

The Big Question: Is it Worth the Cost?

When you buy a rental property you’re making a big investment, so it’s understandable that you’d want to keep as much of your profit as possible. But think about how quickly your investment value would deteriorate if you didn’t take care of that property for just a year.

If you aren’t nearby to do what needs to be done, the repairs needed on the property will exceed the cost of a property manager in a shorter amount of time than you can imagine.

So sure, you can try to do it on your own – but are you paying yourself for the time you’re spending? Probably not.

Finding the Best Property Managers

Now that you’ve got the details about whether or not you need someone to help with your investment homes, let’s talk about finding the perfect property management company.

You want to find someone that has a history in the area, has a large range of services (from sales, to day-to-day management), and establish a relationship with them.

You may never meet them if you’re out of state, but you’ll get to know them through working with them. Do yourself a favor and schedule a meeting with our legendary property managers.

Did you know that 56% of property managers also own the building they are managing? Being a building owner or property manager is a lot of work, and being both is even more work. By having this role, you may find that you struggle to keep up with everything without the proper team backing you up. Don’t let that continue to happen. If you want to be a successful property management owner, avoid these five mistakes like the plague.

1. Lack of Inspections

Property management involves scheduling regular inspections to ensure each unit is livable. It is common for a rental property manager to realize a unit has damage only after a tenant has moved out.

2. Doing Repairs on Your Own

Managing property comes with a lot of responsibilities, but completing repairs on your own is not one of them. Instead, you should outsource maintenance to someone eligible.

You may think you are saving money by handling repairs, but the tasks are time-consuming. You’ll save more money by getting the repairs done faster to avoid problems getting worse.

Professional property management teams can take care of maintenance while saving you time and money. You can have peace of mind knowing that repairs will be done correctly.

3. Allowing Tenants to Handle Repairs

Rental properties are not owned by tenants. As the property owner or manager, you may be willing to give tenants a lower rent if they complete their own repairs.

However, this is never recommended because it can end up causing major risks. If an accident happens because a tenant was completing their own repair, you could be held liable.

4. Avoiding Maintenance Completely

As a real estate property owner, you should never avoid maintenance in any situation. Even if you believe the situation is minor, not completing repairs can lead to major expenses down the line.

Any deferred maintenance is a huge mistake. Along with costing you money, it can lower the value of your property.

5. Ignoring Legal Terms

Whether on accident or purpose, property managers may ignore legal aspects. The main legalities to address include tenancy agreements and property condition reports.

Tenancy Agreement

For every tenant, you should have a tenancy agreement. This is a contract that will state the property terms.

This will help property owners hold tenants accountable when needed. It will also protect the property in the case of a dispute.

Property Condition Report

A property owner should fill out a property condition report that lists items on the property and their repairs.

Among having these two reports, you should understand property management laws. These laws may change as they are constantly under review. Having a professional team can ensure you comply with legislation.

Property Management Mistakes You Don’t Want to Make

Leasing a property is not as simple as it seems. Chances are, you’ve taken on something bigger than you can handle on your own.

Don’t worry, property owners and managers are just one part of a larger team. If you avoid the mistakes listed in this guide, you’ll be in good shape.

For additional help with maintenance, leasing your property, and more, contact us today.

Real estate is a lucrative field where something is always happening. If you have any interest in properties in your area, you might have already considered becoming a property manager. Yet, the field of property management can seem stressful and overwhelming, especially if you haven’t learned everything there is to know about managing properties. 

That’s where we come in to help! We have created an all-in-one guide on everything you need to know about property management and how to get started. 

Be sure to keep reading for our ultimate guide to property management and start learning all there is to know. 

What Is a Property Manager? 

One of the easiest ways to define a property manager is they help to manage a property for an owner or an investor. During that time, they ensure the property is leased to properly screened tenants and is well taken care of. 

A property manager can also help to guide the owner in making decisions for the property. These could be decisions to help the owner make more money, please the tenant, or help to make the property look more attractive. 

What Do Property Managers Do? 

If you’re thinking about becoming a property manager, you might want to know some more property management tips. Good property managers do many different things to help each property run smoothly. In fact, the day-to-day tasks of a property manager rarely ever look the same. 

Before a lease is signed, property managers will spend time making sure everything is clean and inspected. A property manager can assist with showings and screening of potential tenants before finally choosing the ones they deem responsible. 

After the property is leased, they will collect rent from tenants, manage maintenance requests, conduct emergency repairs, and so much more. 

Property managers can even help owners with some behind-the-scenes administrative tasks such as paying taxes or other bills for their properties. 

How Can You Get Started in Property Management? 

The best property management advice is to just get started. If you know an owner or investor who has a property you can start managing, do it!

Once you start building a portfolio and showing more owners the work you can do, you will find more clients rolling in. Don’t forget that property management is always needed.

There are certain licenses and certifications that you will need before you get started. These can also help to boost your credibility as well. Be sure to do your research so that you’re thoroughly prepared as a property manager. 

Starting Your Career as a Property Manager

Are you ready to take on the world of property management? If so, there are plenty of ways to get started.

Be sure to use our guide to score your first rental property and start building your portfolio. Once you do, more owners will begin to trust you with their properties, and you’ll begin building your own property management company in no time. 

If you’re looking for help buying or leasing a property, we have you covered! Be sure to contact us today, and we can get started helping you right away. 

Are you a landlord or property manager who’s having trouble with tenants not paying rent on time? Many people are having trouble keeping up with their bills, but that doesn’t mean that you shouldn’t communicate about it.

Managing properties is hard enough, and talking about rent is awkward, so we want to help. Keep reading to learn about what to do when your tenant can’t pay rent on time. 

Plan Ahead

It’s always a good idea to go into this situation with a plan in mind, preferably before it comes up at all. If you’re reading this and you haven’t yet encountered the problem, you’re on the right track. 

Plan out how long you’re going to allow rent to be overdue. Many people include this in lease agreements, but if times are tough it’s a good idea to have some wiggle room. 

Then consider your plan of action. 

Talk to Them

The first thing that you should do is communicate. It’s possible that your tenant isn’t aware that they missed rent this month. If they have a lot going on and they don’t have automatic payments, it’s normal.

If they are aware, having a conversation and being empathetic can go a long way. You need to see your tenants as people. Many tenant issues can be solved through communication. 

Explaining the situation, that you also need to pay for the property and associated maintenance and bills, will help them understand why rent is so important. 

Negotiate

While you’re communicating, try negotiating with your tenant. You can give them options to help them pay their rent.

One option, if you’re up for it, is giving them a temporary discount. Many people are out of work, so taking off a small portion of their rent can help them pay on time. 

If not, try setting up a payment plan. Let them pay small amounts throughout the month so it’s easier to manage than one large payment at the end. 

Giving your tenant options can help both of you. You get the money that you need and they get enough relief to pay. 

Send a Notice

If your tenant still doesn’t pay rent in the allotted time, it might be time to send an official notice. This should be a formal letter, and it’s a good idea to put it both in an email and on paper. This way you have a paper trail and you can prove that your tenant received the notice.

Sometimes all it takes to get a tenant to take things seriously is an official warning letter that lets them know what will happen if they continue to not pay. 

When Your Tenant Can’t Pay Rent, Try These Tips

Every property manager or landlord will experience this problem at least once. Remember, talking to your tenant may be all you need to get your rent. Even the best tenants fall on hard times or let bills slip their minds. When a tenant can’t pay rent, start by being understanding and go from there.

Are you looking to get new tenants for your home? We want to help. Contact us to learn about how we can take communication out of your hands and find the perfect tenant. 

Working with haste to rent your property is never a good idea. While you may desire to start earning income, you are more likely to lose profit at your investment property if you accept anyone.

Screening tenants is one process you never want to skip. You are more likely to have to evict a tenant if you fail to do this for reasons such as missed payments.

Increased risk of property damage is another concern. Keep reading to learn what to include when you screen applicants as the landlord or property manager. 

1. Create a Checklist

Not everyone who has an interest in your house should qualify. The best way to find the best fit for an applicant is to make a checklist. The prospective tenant(s) should be working and must make a certain amount per month as proof they can afford the place. 

Ask that they earn 1.5 to 2 times the cost of the property at a minimum. You should also verify their employment references to ensure they are indeed working. 

2. Complete a Background Check

As a property manager, it’s also your responsibility to do a background check. There are three things you want to look at: criminal history, credit history, and eviction history. 

Checking their background to see if they have any criminal history seems invasive, but it’s a common requirement you should do. It would be an expensive mistake to make.

Their credit history may be the most important as it is a trustworthy way to see how well an applicant pays money they owe and if it is on time. You must check to see if a prospect has a prior eviction as well. While not 100%, there is an increased risk you may have issues with needing to evict later as well. 

3. Understand Screening Laws

There are limits as to what you can when it comes to screening. The Federal Fair Housing Law protects applicants and ensures everyone receives fair consideration. For example, you can’t discriminate against someone at a chance to qualify over their color, race, religion, gender, status, or presence of a disability. 

4. Start an Application 

Talking to all applicants and meeting are a must, but the process isn’t complete without an application. All terms and agreements must be in writing, not just verbal.

Upon approval, the applicant agrees to the set rules and expectations. This is vital in the event issues arise or you need to go to court.  

5. Narrow Your Selection

If all goes well, you will have several applicants and it will be your job to choose the right one. You want to find an applicant that meets the requirements you set or exceeds them.

It’s best to wait for new applications if someone does not meet them. Never settle and accept. 

Screening Tenants Will Save Time and Money 

You will save hundreds to thousands by screening tenants before they step foot on your property. Although it may take time to complete, you lower your risks of dealing with someone who will damage your place or fail to pay on time. If you need assistance keeping track of your property and want to find the right property manager, contact us.