In every area of the country there are professional managers who specialize in managing residential properties. Identify several management companies you might employ, you still need to do some research. Interview the management company as well as several of its customers.
Determine the following from the company:
1. What percent commission is charged for finding tenants? (Some may charge one-half of one month's rent or even more. Remember, though, that it's negotiable.)
2. What percent of the gross income is charged for management? (Percentages will range from 6 percent for multiunit properties to 10 percent for single-family homes.)
3. Does the management company charge an override on any repair or maintenance bills? (For example, some companies I've heard about will charge $10 on top of every labor or repair bill, and others will charge 10 percent of the amount of the bill.)
4. Does the property management company insist on listing the property for sale if you decide to sell during the management agreement? (You should not agree to this.)
5. Does the property management company provide monthly or quarterly income and expense statements, and are they computer-generated statements?
6. Would it agree to a 60-day cancellation clause for both parties? (I think this is fair and to be argued for.)
7. Would it provide you with the names of three current customers? (If it won't, move on to another company.) Once you receive the names of three current customers, ask the following questions:
a. Have you ever had a problem with the company and if so, what was it?
b. What is its success rate in filling vacancies? What is the longest period of vacancy your property has experienced?
c. What is the worst thing I'd find if I choose to have the company manage my properties?
Based on the information you receive from the company and its customers, you may (if you've decided on management) want to enter into a management contract with them.
Niyi, I'm new to property management. The "art" to properly managing properties, It includes the art of balancing ones time, whether it's time spent screening prospective tenants, taking care of maintenance problems, or rent collection; time spent making financial decisions, such as whether to buy or sell a certain property; or time spent on ones personal life.
Note: Keep in mind as you're reading; professional managers who specialize in managing residential properties. Usually licensed by their state's real estate board or commission, they charge a percentage of the gross income collected as their fee. This percentage ranges from 7 to 12 percent with 10 percent the most common.
Good Hunting! Niyi
Try this one!, it works for me.