Property Management Selection

Submitted by Curt Amesbury All too often I run into investors who have bad experiences working with their existing Property Manager. If you are making an investment in real property that you cannot visit yourself, then it is a good idea to properly screen and selects the local manager who will be guarding your investment.

Some criteria for selection could be:

1. Is the firm run by a Licensed Real Estate Broker and a member of the National Association of Realtors? (If so there is an accepted Code of Ethics that governs business dealings).
2. Does the firm have a legitimate brick & mortar location – not just a Post Office Box. Can you and tenants actually go there and find someone on duty during business hours?
3. Does the firm report owner statements using a professional reporting system? Is it integrated with a standard database (such as Quickbooks or Excel).
4. How much is the fee and what is covered? What type of extra charges can you expect? If you sign up, what is required for either party to exit the contract?