Yet another residential management company receives a "cease and desist" order from the Arizona Department of Real Estate earlier this week.Â
This not only impacts the property owner but the tenants and even the employees. This occurring during a time when folks don't have the margins that will allow for the financial impact of an account deficit to the tune of 3/4 of a Million dollars.Â
Tenants are left with unanswered maintenance issues, potential move-ins derailed and a resident that would now like to leave at their earliest opportunity. While it is not the same thing everyone knows of a tenants that was made to relocate unexpectedly due to property owner foreclosure. This can give that same kind of feeling.
We choosing a management company there are so many more components than "what are your start up costs, your management costs"? It is so easy to offer a fee schedule that appear low initially but when factoring in the additional fees for services not included (HOA compliance, inspections, vendor/contractor coordination fees, etc). How can a company propose to manage a property and have no inspection factored in unless it comes at an additional cost. The management company should offer inspections at no fee, pay HOA dues at no additional cost, no fee for HOA compliance, offer direct deposit of rent rolls, online owner account portals, provide the owner the ability to approve the tenancy after all the background and screening is complete and say they have been in business for over 2 decades. Check out ONEprop, Inc
The question seldom asked or considered is "how do you treat your tenants?"Â Do you offer on line payments? Do you offer online maintenance requests? Do you provide monthly billing to your tenants? Are your tenants treated as customers past the ink drying on the lease? How the tenants are treated? is seldom a question I have been directly asked in all the years of property management. You would think it to be a keep component seeing as how the tenants is "how all the bills are paid".
While the tenants have a contractual obligation to pay (and pay on time) as well as take care of the property, but there is one thing I have seen in this business; how quickly motivated or demotivated they are to do so based upon the relationship with the managing body. Meaning whether it is an owner landlord, RE agent or property management company; if that relationship goes sour it will cost every especially the property owner.Â
Tenant must be treated like customers while the owner are the clients. The term customer should come with an elevated level of service but lets not forget some of the tenants are the people you may see on the video "The People of Walmart"
There is always a bad apple in the bunch but the good part is the bucket is always full of GREAT apples.