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nightmare tenant
March 18, 2020

5 Incredibly Helpful Tips For Handling a Nightmare Tenant

James Summerlin / Real Estate /

There’s no easy way to handle it.

You’ve dealt long enough with the missed payments, damaged property, loud house parties, and unanswered phone calls. You knew to become a landlord wasn’t going to be easy, but no one warned you it would be this hard.

After grabbing all the self-help books you could, you still haven’t found the answer to your problems. The nightmare tenant is still there. 

There’s no need to worry anymore. Keep reading below for 5 effective tips on how to handle the nightmare tenant.

1. Always Remain Rational

It’s easy to become emotional. There may have already been moments where you’ve stood in the doorway and yelled at the tenant who broke another window.

While it is completely natural, and sometimes warranted, to become angry with someone, it’s best to remain rational in all interactions with your nightmare tenant. Problem tenants sometimes feed off emotional responses and can react by causing more trouble.

When speaking with your trouble tenant, remain firm, assertive, but remain calm when speaking. Don’t throw papers or bang your fist on the wall. You’ll get a better response if you’re calm and collected.

2. Always Back up Your Point With Facts

When confronting your nightmare tenants, have facts to back up your point. If they broke a rule stated in the original lease agreement, bring a copy of the lease when meeting with them and highlight the rule they broke.

Did they only pay a fraction of their rent for the third month in a row? Bring receipts highlighting the amount they did pay. 

If you come in with obvious facts and receipts, they’ll have a harder time trying to fight your side of the argument. 

3. Always Show Them Respect

Even if you’re angry and confronting someone, you can confront them and still show respect. 

For example, if you believe they are destroying some of the property, give them the promised 24-hour notice before coming into their space. Don’t go into their space without warning, and don’t bang on their door at midnight when you’re upset.

4. Always Have Empathy

Some people are just not good people. That’s that.

However, some bad tenants are bad tenants because no one has cared enough to teach them how to be a good tenant. Learning how to be empathetic with a difficult person is a hard process, but it could pay off for both parties in the end. 

Be a little extra patient when dealing with their paperwork, take the time to show them how to fill out a maintenance request, and answer their emails in a timely manner. Your kind responses could soften their heart.

5. Always Be a Step Ahead

Don’t scramble for receipts and paper trails when things go poorly with nightmare tenants. Have a folder for all of your tenants and keep copies of important notices or items in their folder.

That way, if they spontaneously confront you first, you can pull out their folder. It shows you’re prepared, organized, and serious about what you do.

Top Tips on Handling a Nightmare Tenant

The nightmare tenant may have missed rent again or they might have broken a chair, but above are top tips on how to handle the situation in a professional manner.

Make sure you confront your trouble tenants with respect, possibly an extra dose of empathy, and facts to back you up in any situation. No matter what happens, you want to handle things like a professional.

For more on real estate tips, make sure to check out the rest of our page and contact us. 

standard lease agreement
February 10, 2020

5 of the Most Important Terms to Include in a Standard Lease Agreement

James Summerlin / Real Estate /

Nearly 40% of households are renting their home. It is a statistic that speaks of how popular and affordable renting has become in recent years. 

Landlords are seizing this opportunity to rent out their property. 

But there’s a lot more to it than having a for rent sign on your front lawn. As a landlord, you need to have a formal lease agreement set up with your tenants. 

More importantly, you should know what’s included in a standard lease agreement to avoid any confusion with tenants such as who pays for repairs, etc. 

To cover the essentials of a lease agreement, here are the 5 most important terms you must include in a lease agreement. 

1. Occupancy Limits

You want a standard lease agreement that limits the number of people who are renting your residence. You don’t want way more people occupying your residence than what was agreed upon in the lease. 

You can apply the standard two renters per bedroom rule. This rule varies depending on the size of the bedroom and if the occupants have children. 

You should also see what your local occupancy and rental laws are before applying these rules. 

2. Length of Tenancy

Leases can be as short as six months and as long as thirty years. It depends on what the landlord and tenant agree on. 

In addition, the tenant will typically move in and pay on the first of the month. 

3. House Rules

A landlord must have house rules in order to establish what tenant can and cannot do in the home that may be illegal or damaging to the landlord. 

As a landlord, you can have quiet hours in the lease and specify no smoking on the premises. 

You may also want to include rules about pets or playing instruments loudly.

4. Deposits and Fees

A security deposit is required for almost any lease agreement. A security deposit is an assurance for the landlord in case any damage is done to the property. The landlord can use the security deposit to make repairs if needed.

The cost of a deposit is usually equivalent to a month’s rent. It should also be paid before the tenant moves in. 

5. Repairs and Maintenance Requirements

A maintenance checklist can help tenants understand what they need to clean or inspect on a regular basis. 

You may require tenants to replace filters, light bulbs, and batteries. But these are minor requirements for a tenant. 

You should include in the lease who is responsible for repairs. Fixing appliances can be especially expensive and should be noted in the lease. 

You can also find more information on DIY landlord property management by reading about it on our blog. 

A Standard Lease Issues Creates Fewer Issues With Tenants

A landlord should find a standard lease agreement with these terms to avoid potential conflict with a tenant. 

You want a lease agreement that spells everything out in order to avoid confusion or costly expenses that the landlord will have to pay for. 

You can find more information on lease agreements by contacting us. 

residential real estate investments
January 13, 2020

5 Facts Every New Landlord Should Know About Residential Real Estate Investments

James Summerlin / Property Management /

Purchasing residential real estate investments is an excellent financial move. At the same time, it’s a very involved process if you plan to manage the property and be the landlord. 

There are a few things that everyone should keep in mind before they make the investment and become a landlord. We’re going to discuss 5 of the most crucial tips to make your experience as smooth as possible.

Let’s get started:

5 Tips for Residential Real Estate Investments

There are a number of ways to make a residential real estate investment, and not all of them include being a landlord. 

We’re going to stick to the ideas that apply to landlords, all except our first suggestion.

1. You Can Hire a Property Manager

Many people take pride in being a landlord. At the same time, hiring a property management company may take a little return out of your investment, but it could significantly reduce the amount of work and communication you have to have with tenants. 

2. Run Background Checks

The return on your investment is directly tied to the people who rent from you. If they don’t pay, sure, there are ways that you could get your money eventually, but those methods often require expensive lawyers and a lot of time. 

It’s best to take on someone with a great rental history, regular income, and a positive relationship with their former landlords. A clean criminal record is a good thing, too, but sometimes the person with the cleanest record can cause the most problems.

Mostly, use a background check and use your judgment. 

3. Plan Your Flip

A lot of people get a little too invested in the easy, thirty-minute segments on HGTV. 

There’s nothing wrong with HGTV, but keep in mind that flipping a house and making a profit requires a lot of time, effort, and planning. If you’re planning to flip a house, make sure you do your due diligence. 

It may be wise to talk with someone who has experience flipping houses and learning how they do things. 

4. Research Your Neighborhood

Your investment will be yield more returns if you select a neighborhood that you can expect to have an increased property value over the time that you own it. 

You can make these decisions by assessing property value trends in different areas. While doing your own research could work, it may be wise to consult with a professional when making inferences about changes in the housing market. 

5. Understand the 70 Percent Rule

When you’re looking for homes to remodel or fix up and sell, make sure that you understand the 70 percent rule. 

How much will your home be worth after you make all of the desired changes? Take that hypothetical number and chop 30 percent off of it, and that’s the most you should pay for the home.

So, if the home will be worth $100,000, you shouldn’t aim to pay more than $70,000.

Want to Learn More About Property Management?

Hopefully, this article has helped you think about your potential residential real estate investments. If you’re in need of more information, though, we’re here to help. 

Explore our site for more information on property management and how to do it right. 

landlord property management
December 17, 2019

The Pitfalls of DIY Landlord Property Management

James Summerlin / Property Management /

So you want to be a landlord – and a real estate manager. 

Sure, income properties remain as a winning investment. But if you already have one or three, perhaps you’re trying to manage the property yourself. But are you really ready for DIY property management?

A landlord property management company knows the ins and outs of how to handle operations at an income property and can take a load off your shoulders and even save you money.

Here are some problems you might run into if you try to go it alone…

A Missing or Inadequate Lease Agreement

Do you know everything that should go into a residential lease agreement? You can be sure that a property management company does. 

You may have a “good feeling” and a handshake agreement with a tenant, but it can burn you down the road. A lease is a legally binding agreement that outlines the monthly rental rate, conditions that need to be followed, how the deposit is handled and more. (And by the way, make sure you get that security deposit.)

Without one, you don’t have much of a leg to stand on if the tenant decides to cause you trouble down the road. 

Long Vacancies

When a tenant decides to leave, they can do so with little or no notice (another reason to have a lease agreement.) In any case, you might not have the time or expertise to attract a quality tenant, meaning the property might be vacant for months, eating your profits. 

A landlord property management company can help you properly prepare and advertise the home, which can cut down on how long the home stays empty. They also know how to adjust the rental rates according to the local rental market. 

Dealing With Repairs

Referring back to that lease agreement – make sure you outline who is responsible for any damage to the property from neglect and whether they can renovate the home in any way. 

Regardless of who is financially responsible, you may find yourself getting calls to check on a noisy fridge or a leaky faucet every week. And you may or may not have the skills to fix it. 

A property management company usually has a list of bonded contractors they can turn to that can handle maintenance and repairs on your behalf. And it might be cheaper than doing the job yourself, especially if you botch it or ignore regulations. 

Less Time For Everything Else

If you think you’re saving some money by avoiding hiring a landlord property management company, think again. It can end up costing you more than money – it can take up your time. From responding to complaints to making trips to pick up late rent checks, your family and personal time can take a hit. 

Hire a Landlord Property Management Company

Having an experienced landlord property management company on your side can save you time and money, while also helping you avoid legal pitfalls from an improper lease or not following local regulations. 

Find out more about how you can avoid DIY property management problems by contacting us today! 

questions to ask a property manager
November 19, 2019

5 Questions to Ask a Property Manager Before Hiring

James Summerlin / Property Manager /

Over 2,600 new renters enter the property market in the U.S every day. This high demand for rental accommodation makes property investment an attractive option.

However, managing your tenants and properties takes a lot of time and effort. Property management companies take the stress off your hands. Knowing what questions to ask a property manager will help you hire the right one for your investments.

Keep reading to find out more about the benefits of a property manager – and what to ask before you hire one.

Why Hire a Property Manager?

A good property manager builds great relationships with your tenants to ensure they stay longer and pay rent on time. They’ll also negotiate supplier contracts for cost efficiencies, and save you weeks of time each year handling tenant queries.

However, some property managers perform better than others. Keep reading to find out how to find the best one for your properties.

Vital Questions to Ask a Property Manager to Find the Right One

You’ll naturally ask questions of any service provider about their fee structure, rates, and contract terms. Those are quantifiable things that are easy to compare between providers.

To find the right property manager for you, however, it’s important to dig deeper. Ask these questions to find out if they’re The One.

1. What Type of Tenants Have You Previously Managed?

If you’re investing in luxury condos, your typical tenants may differ from student-centric accommodation. They’ll have different needs and lifestyles.

A good property management company will have relevant experience with your preferred tenant type.

2. How Will You Ensure a Positive Cash Flow?

Property managers ensure your tenants pay their rent on time. They also keep an eye on other finances – such as your garbage disposal and utilities contracts – to see where you can make savings.

A proactive manager will identify areas for improvement, investment, and savings to keep your cash flow predictable.

3. Will You Help Me Keep Units Occupied?

Ask about the experience and the contact book of your property manager. They should be able to build great relationships with tenants to identify those who plan to move out well before they leave.

They’ll draw on their experience and market knowledge to fill units like this ahead of time, meaning they’re never left empty.

4. Do You Keep Up-To-Date with Housing Regulations?

Ask about the ongoing professional education your property manager takes. Do they read trade magazines? Attend networking events? Study for qualifications?

Awareness of housing and building regulations is essential to making sure you’re operating your rental business within the law at all times.

5. How Do You Prefer to Communicate and Deliver Reports?

Your rental property investment is a business: your property manager needs to understand the implications of this. Ask if they produce monthly reports and hold regular meetings with landlords.

Find out, too, if they have a communication policy: can you only call or email them? What about if you want to visit your property? A good manager will be happy to communicate in the way you prefer.

Speak to an Expert Property Manager Today

Knowing what questions to ask a property manager makes it tempting to send off a list of questions in an email to lots of possible suppliers. This isn’t going to deliver reliable results, though. Email makes it easy to claim anything to secure a contract – meaning replies could be insincere. 

You need to speak to your property manager on the phone at least – and ideally in person – to make sure they’re the right fit for you. Contact our expert team today to arrange an appointment – they’re guaranteed to answer any questions you may have about managing your properties!

how to be a property manager
October 29, 2019

How To Be A Property Manager Successfully

James Summerlin / Blogging /

Approximately 34% of American adults rent the home or apartment they live in. With more people renting than at any other time in the past 50 years, investors are starting to look for rental properties to buy. Most investors don’t have the time or experience needed to manage their own properties.

This why they typically hire professionals to manage their properties. If you are interested in how to be a property manager, then you need to get ready for some hard work. While managing various properties can be time-consuming, it is worth the effort considering how lucrative this job can be.

The following are some of the things you should consider when trying to become a successful property manager.

Getting Familiar With The Properties You Manage

When trying to become a successful property manager, you need to work on getting to the know the ins and outs of the properties you have been tasked with overseeing. The more a person knows about the inside and outside of a property, the easier they will find it to maintain it.

A familiarity with the vital systems a property has is also a great way to catch repair issues early on. Staying one step ahead of these problems is essential when trying to keep clients happy.

If a new property manager ignores the need for this in-depth property knowledge, it can lead to a variety of mistakes being made. The last thing you want is to upset a new client with poor service. This is why you need to invest time and effort into familiarizing yourself with properties you have been hired to manage.

Work On Being Available and Dependable

One of the main reasons why property owners hire a management firm is to save time and money. A property owner needs to find a property manager who can help them whenever they have a problem at one of their homes or apartments.

Having success as a property manager will require you to work on being dependable. If you tell a client you are going to do something, you need to follow through.

If you get a reputation for being unreliable, you will have a hard time landing new clients. The key to keeping tenants happy is under-promising and over-delivering on a consistent basis.

Put the Right Team in Place

As your property management business starts to grow, you will find handling all of the work on your own impossible. Instead of letting important tasks fall through the cracks, you need to outsource some of these responsibilities to a third-party.

Working with a larger and more experienced property management firm is a great way to ensure tasks are completed in a timely and efficient manner.

Learning How to Be a Property Manager Takes Time

Instead of getting in a hurry, you need to realize that learning how to be a property manager is not an overnight process. While you will have to spend a lot of time learning the ropes of property management, it will be worth it in the long run.

Are you looking to outsource parts of your property management business? If, contact us now to find out how we can help.

hiring a property manager
September 17, 2019

5 Ways Hiring a Property Manager Can Save You Money

James Summerlin / Property Manager /

Fun Fact: Over 10% of all housing in America is vacant all year round. That’s an alarming statistic when you consider that many of these properties don’t have to be.

If you’re in the situation where you want to rent your property but you don’t the best way to do it then worry no more. We’re going to tell you why hiring a property manager will be the best decision you’ve made in years.

1. Less Time Vacant

It goes without saying that no one living in your property equals no income from rent or other payments. The longer your property sits vacant the more money you are losing. This applies to both property upkeep and lost income.

One of the most efficient ways to combat this is to consider hiring a property manager. Established property management services have the tools in place to ensure your property gets exposed to a larger market. This can dramatically reduce the time it takes to secure a new tenant, saving you a lot of money.

2. A Higher Class of Tenant

With that said, you don’t want just anyone living in your property. If you get stuck with a bad tenant then there are ways to get rid of them, but why go through all that hassle?

Hiring a property manager can ensure that you only get the type of people that you want living in your property. This is ensured through a process of rigorous tenant screening conducted by the property management company.

This won’t just save you money from common problems with nightmare tenants, such as unpaid bills either. It will also give you some much-needed peace of mind.

3. No Nonsense Approach to Rent Collection

On the subject of bad tenants, if you’re already stuck with one, or one slipped through the net then don’t worry. Hiring a property manager takes the hassle out of difficult situations like rent collection.

If you’ve been in the situation of listening to ridiculous excuses why rent can’t be paid before then you know how hard it can be. Hiring a property manager can remove this grueling task. This is achieved by adopting a tighter rent collection policy, ensuring payment is on-time, every time.

4. Don’t Sweat The Small Stuff

There really is no end to the list of things a competent property management company can do. We’ve mentioned how hiring a property manager can help with rent collection, but that’s just the start. A property manager can also:

  • Handle repairs and contractors
  • Field phone calls on your behalf
  • Liaise with tenants (including handling evictions)
  • Renew leases
  • Collect Rend

And much, much more. You’re not going to understand the true power of a property management company until you get in touch. However, it’s needless to say that you will have more time for yourself with the property manager handling all the small stuff.

5. The Law of the Land

As with many things, the law associated with property ownership and renting can be a minefield. If you don’t know the rules and regulations to the letter then you can find yourself in hot water.

This is where hiring a property manager really helps. Sure, they can take care of all the stuff we’ve mentioned before. But the real power of a good property management company comes from their industry knowledge.

A professional property management company knows all the applicable laws. Because of this, they’ll be certain that you’re always obeying them.

Even if you do fall foul of an unavoidable lawsuit, the property manager will be fighting in your corner. With a property manager and their real estate attorney contacts, you can be safe in the knowledge that you’re always on the right side of the law.

Hiring a Property Manager is a Win for Everyone

Now that you realize the benefits innate with hiring a property manager, what are you waiting for? Don’t let your property go vacant or your rent uncollected for a day longer. Get in touch with a professional property manager today and save yourself a fortune.

Are you in the market for a professional property manager? Get in touch with us today and see how we can help you. Also, if you’re looking for more great property management advice then why not check out our blog?

real estate questions
August 13, 2019

Important Real Estate Questions Asked By Buyers

James Summerlin / Real Estate /

Are you in the market for a house?

While every person and house is different, there are some things that don’t change. For instance, every prospective buyer will always have questions about the home buying process.

We’ve got the most common real estate questions asked by buyers so you can be prepared with the answers you need to close the deal.

Let’s get started!

Financial Real Estate Questions

Money is an important part of life and a major part of every real estate transaction. Many of the questions buyers have will have to do with the financial aspects of the undertaking.

Some of the financial real estate answers that buyers will want may include:

Does the House Have a Mortgage?

An interested buyer is going to want to know what kind of financial debt is associated with the house. This may include questions about the current mortgage or whether there are any liens on the property.

They’ll also want to know what kind of restrictions are on the property for building, changing, or developing as they wish. No one wants to spend hundreds of thousands of dollars for their dream project only to learn they can’t build what they want on the land they’ve just paid for.

What Are the Property Taxes?

Another of the expenses that most buyers are curious about before signing on the dotted line is the amount of property taxes. No one wants to be shocked when the property tax bill comes in and it is a lot higher than expected.

What About Commissions, Inspections, Fees?

Before entering negotiations or putting an offer in on the house, a buyer will want to know all the expenses associated with buying this property. These include the commissions, inspections fees, and other expenses they’ll have to shell out before moving in.

Inspector Gadget

Almost every buyer will have some questions about the state of the house they are considering. While they can walk through it a hundred times themselves, there is some information you just can’t determine by simply attending an open house.

Lights, Camera, Action: What’s up with Electrical Matters?

Most buyers will want to know more about the electrical system in the house. Inquiries about when it was installed, any problems, repairs, or issues are to be expected.

They will most likely want to see the fuse box or circuit breaker for a better idea of what they’re dealing with. Most people will inquire about the details of a house inspection and if one hasn’t been done, will either negotiate that into the terms or get one themselves before closing.

Have Any Repairs or Upgrades Been Done to the House?

They’ll want to know when repairs and replacements were done on the house. The roof, plumbing, basement and everything in between.

Are There Any Water Issues?

These may include:

  • Are there water pressure issues?
  • Is the house on well water or city?
  • Is it on a septic tank or sewer system?
  • Have there been any leaks, flooding, or situations to cause mold?
  • Are there any water flooding issues in the residence or on the land?

Any issues with standing or flooding water may not be apparent at the time of year the house is being sold. It’s important to have full disclosure into any water issues prior to making the commitment to buy a property.

Ask These Real Estate Questions Before Committing Yourself

Asking the right real estate questions now could save a buyer a great deal of money and headaches a couple of months or years down the road. And as a buyer, you now know the kind of questions you need to ask.

For more information on real estate and property management, keep reading our blogs!

questions to ask property manager
July 18, 2019

6 Very Important Questions to Ask a Property Manager Before Hiring

James Summerlin / Property Management /

If you own commercial property, you already know how much work and maintenance is involved.

A property manager can help you organize processes, keep a close eye on the building, and manage other important things like processing rent payments.

Before you choose someone to manage your property, read on for six important questions to ask a property manager before you make a final decision.

1. What Kind of Services do You Offer?

Some property managers offer full building maintenance, while others simply help you market your commercial property. Find out exactly what the scope of services is that your potential property manager offers. This will give you a clearer picture of what to expect in the future.

2. Questions to Ask Property Manager: How about Experience?

Like any other profession, experience matters. Find out how long the property manager has been in business and what other clients they serve. The length and quality of experience can give you peace of mind when it comes to reliability and trustworthiness.

3. What About Cancellations?

The cancellation policy is part of many questions to ask property manager. Find out what their policies entail in case you need to find an out for whatever reason. You don’t want to get locked into a contract that you can’t exit later if you absolutely need to.

4. Can I see Your Fees in Advance?

All property managers will charge a fee for their services, but these can vary greatly between companies. Ask about a list of all fees in advance so you can plan ahead for your budget. Some property managers may offer a flat rate of ten percent, while others might charge individual fees for each specific service you require.

5. Am I Able to Sell Whenever I Want to?

There may be a time when you decide you’d like to sell your property. Make sure that your property manager has no restrictions when it comes to the sale of your building. Some companies have a clause where they force you to sell property with them, which is something you should never agree to.

6. How is Rent Collected?

Find out how the monthly rent for your property is collected, whether it’s via direct deposit, check, or online. It’s important that you know exactly when rent is due so you can manage your income effectively. Ask the manager about their payment process and what the rules are on late payments and possible evictions.

Asking the Right Questions Will Give you Peace of Mind

Use these questions to ask property manager to help you get a handle on your next prospective management company. Once you have all the information you need, you’ll be better able to make a solid decision that serves your best interests.

Contact us today for your property management needs, and be sure to visit our blog for helpful information about home renovations, property manager tips, and much more. 

property management company
June 7, 2019

Getting the Help You Need: The Top Tips for Hiring a Property Management Company

James Summerlin / Property Management / property management company /

Do you have a robust real estate portfolio?

Congratulations! You’ve taken the first step. Now it’s time for you to grow and add to your portfolio.

The number of renters in the United States is continuing to increase, so now is the perfect time to expand your business.

If you are thinking of hiring a property management company to help, there are a few things you need to know.

Keep reading to learn five things to look for when picking your business partner.

1. How Many Properties Do They Manage

The first thing to ask a potential management company is how many properties they manage.

A good employee with the right tools can typically manage between 30 and 40 units, so you want to make sure that they are equipped to handle your units.

2. How Often Are Inspections Performed?

Your property needs to be inspected from time to time. Ask your management company how often they will be performing them.

Most companies will be accommodating to your needs. But if you run across one that complains about what your requirements are, then you may need to look for another company to manage your rentals.

3. What Reports Do You Get

A good management company should keep you updated on what is happening with your properties. Ask about the type of reports you get and how often you get them.

Make sure you receive details on any late payments, repairs, and any other relevant information.

4. How Are Tenants Found?

Do you have any particular standards for tenants that you like? Make sure your property manager can hold to your standards.

Ask about tenant screening procedures, so you know that due diligence is being done.

Other companies will send you potential renters so you can sign off before moving someone in.

Whatever the procedures are, make sure that you are comfortable with them or you may run into problems in the future.

5. Figure Out the Fee Structure

Make sure you ask about the fee structure you will be committing to paying.

Fees typically range from 7% to 10%. But you need to know if that fee is from total rental income or potential rental income.

Here are some of the other fees that you could see in an agreement:

  • Vacancy fee
  • Administration fee
  • Set-up fee
  • Leasing fee

Costs can add up, so make sure you can afford to pay them.

6. Ask for Referrals

Before you commit to anything, ask the people you know and the management company for referrals.

Referrals can let you know what it is like to work with a particular company. They will be able to tell you what problems that came up, how well they communicate, and how well they resolved the issues that come up.

Hire a Property Management Company to Help

You don’t have to go at it alone. When you hire a property management company, you’re getting a partner that will help you make your real estate business a success.

The time you save managing your properties can now be spent on activities that will build your business even more.

Are you looking for a management company to help? Contact us to learn how our services can help!

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