Property Management checklist

Lets say you want to delegate the management of your rental property or properties and would like to browse a few property management companies. Here is a basic check list that can help you narrow down the best company that fits your needs.
Some things to look at while you are comparing companies:

-Does the PM co. offer owner operational statements showing profit/loss? How often? Monthly? Quarterly?

-What is the fee during vacant periods? Is it the same for occupancy?

-What is their average turnover time for vacancy?

-Will the PM co. send you a tax statement at the end of the year?

-Does the company subcontract for routine maintenance (cutting grass, shoveling snow, etc) or is it inhouse? Is there an extra fee?

-Do they offer a discount if you plan to aquire more properties and use their services?

-What is their method for collecting rent? ACH? Does the tenant mail it, drop it off, etc?

When you narrow your list down, get 3 references and call them.

If you feel that property management companies are not in your kind of thing, here is another way of managing your property

The BEST property management companies are members of NARPM.org ( national association of residential property managers)

But there's a better way...

(1) Find a really sharp real estate investor in the area where the property is and master lease to the investor. Example, if the house rents for $1000 per month, you might lease to the investor for $900 - $920 per month them they sub lease to the tenant who moves in.

(2) or take David Tilney's class about Hassle Free Property Management and learn how you can make each tenant the property manger for the house. That's what to do!

Run ads on craigslist and rentals dot com to find my tenants. After a thorough screening the prefect tenant is selected. They live in the house and they are in charge of taking care of the house. The first $50 - $100 in repairs are their responsibility. If the repairs are more than that they have the number for my contractors and make the call. Since yu can't fix anything it is a total waste of time to call.Eliminate the middle man and let the tenants call your contractor. When repairs are needed, the contractor calls to let you know the situations and approve the work order.

What about rents?

You set up two ways -- Either use ACH ( automatic clearing house) to go in to the tenants accounts and take out the rent or . .

Give each tenant a book of deposit slips for my bank. You can offer them to pay rent at any Bank of America, just give them one of these deposit slips when you do. The money goes in to a deposit only account which is swept clean every night when the money is moved to my management account.

With this system, you don't need to hire a property manager, the tenant is the property manager.