Real Estate Management Company Basics You Must Know
Real estate management encompasses management of personal properties, physical capital, and equipment that are acquired and used to build, repair, and support end item deliverables. Real estate management involves the processes, systems, and personnel required to manage the life cycle of all acquired property as defined above including acquisition, control, accountability, responsibility, maintenance, use, and disposition.
A homeowner can engage the services of a property management company. The company will then be advertising the rental property, handle tenant inquiries, screen applicants, select suitable candidates, draw up a lease agreement, conduct a move in inspection, move the tenant(s) into the property and collect rental income. The property management company will then coördinate any maintenance issues, supply the owner(s) with financial statements and any relevant information about the property etc.
Responsibilities of the Real Estate Management Company
The real estate management company deals directly with the properties and tenants, helping the homeowner to market the properties, collect rents, handle the maintenance and repairs on the real estate, the company also responded to the complaints of the tenants. A very good real estate management company will bring its know-how and experience to the property management, giving the homeowner peace of mind that comes with knowing the property is in good hands.
Hiring a real estate management company has many advantages, using one can be expensive. Even apart from the cost, relying on a real estate management company is not for everyone. Consider the following factors to decide if hiring a property management company would be a good decision for your business.
Factors to Consider before Hiring a Real Estate Management Company
– You only need to hire a real estate management company if you have lots of properties. The more real estate properties you own and the more units they contain, the more you are likely to get help from a management company.
– If your real estate is located far from where you are residing, you need to hire a real estate management company who will help in managing the property and deals with many issues that you will not be able to handle from your far place.
– If you can afford the cost, you can hire the real estate company. When interviewing the real estate companies, expect to hear quotes ranging between 5% and 10% of what you collect in rent revenue. If it is a down market and you are able to manage things yourself, you may want to keep doing so until the market turns around.
– Hiring a real estate management company can expose your property to be part of the affordable housing programme. Participating in an affordable housing programme can help you to receive a financial help, which may be in the form of a grant, low-interest loan, or tax credits, in return for agreeing to rent at least part of your property to tenants earning below a certain income level. In order to continue receiving the help, the homeowner must comply with a complicated set of rules. With so much at stake, it is often worth hiring a real estate management company that has ability and experience with the particular housing program in question.
How to find a Good Real Estate Management Company
– The decision to hire a real estate management condition need caution in the processing.
– You need to get recommendations from colleagues and your local apartment association.
– You can search the real estate directories on the Internet. Visit the website of the Institute of Real Estate Management (IREM) and click “Find a Professional.” Or visit the National Association of Residential Property Managers‘ (NARPM) website and click on Find a Property Managers.
– Interview the real estate management companies to get all your questions answered before handing over the reins.
Visit the Store Nolo Website to read the Every Landlord’s Guide to Managing Property and learn more about protecting yourself when hiring a real estate management company to get help with other risks facing the homeowner.