As a Empowered Investor Network (PPIN) client, you already have access to our pre-screened quality property managers around the nation but that doesn’t mean you should just take out word for it. Remember two of Jason’s 10 Commandments of Successful Investing? Thou shalt become educated and thou shalt maintain control.
There are standard things to look for in a property manager, and a good one can be worth his/her weight in gold. It’s nice to have an experienced eye screening your tenants, one who can likely spot 90% of problem renters before you let them into your building.
Lots of PPIN clients worry about property manager corruption. Yes, it can happen, though the occurrences aren’t frequent. If you follow our diversification model in acquiring properties, you’re going to have your risk spread around in different geographic areas, thus greatly reducing the chance of loss, even if you get a single manager who flips out and absconds to a Mexican Beach with a your rent money.
Here are some tips to get up to speed quickly on your property manager.
1. Check their references. Don’t just read them. Make actual phone calls.
2. Ask for their Standards and Procedures manual. They should be able to email it to you. Read it and learn exactly how they do their business.
3. See if you can set up rents to be directly deposited into your account and statements put online.
4. Don’t have your manager pay your mortgage or HOA fees.
5. See if they have fidelity bond insurance, which covers your losses in case they steal your rents.
Above all, don’t be paranoid. Most property managers are good ones. PPIN refers enough clients to our managers that they should bend over backwards to give you great service. If they don’t, let us know, and we’ll have a talk with them.
Flickr / Kelly Sue
