How to Hire a Property Manager for Your Rental Property – Real Estate Investing for Beginners

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This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design the best lives.0:15
Hey guys, it’s Sharon from digital nomad quest and today I want to tell you guys about how to get a good property manager. So if you want to be more hands off with your rental property might be a good idea to get a property manager. But first let’s talk about what a property manager does. He suggests rent prices to charge based on current averages in the neighborhoods they collect rents the market the rental property to find new tenants and then they screen the tenants prepare lease agreements, they address tenant issues respond to both tenants and landlords in a timely manner. They maintain the property by finding contractors in handy men to get things fixed. They also help manage the eviction process of tenants if necessary. So property managers do a decent amount of work how much do property managers cost? So I currently pay 8%, like I mentioned in the previous video, so basically my property1:00
rents out for 2050. And then I pay 8% of that to the property manager, which equals around $164 per month, the amount you pay the pm though, really depends on the market and it can really range and some property managers actually just charge a fixed amount. Now, if you live near your rental property and you have good tenants, you might not even need a property manager. I personally have a rental property because it’s further out and I prefer to have someone just handle everything. Also something to note that I mentioned in that previous video. So if I’m in the situation where I need a new tenant and the property manager brings on a new tenant, I normally pay 50% of the rent to the property manager for that first month for helping me get that tenant. So that’s another cost to take into account. Now how do you get a property manager many times an agent will have a property manager contact and that’s kind of what I experienced. It’s also good to get referrals from like friends and family. If you don’t have a referral. You can just google a property manager. You can Google something like property manager at blink city right Craigslist and bigger pockets are also a2:00
sites to potentially look for when it comes to getting a property manager. Now what should you look for in a property manager? You can probably start off just asking the property manager, what responsibilities Do you have, if they can say basically all the stuff that I mentioned earlier in the video, that’s a good sign. You should also ask them how long they’ve been working as a property manager because obviously, someone with longer experiences better you can ask them if they already have existing tenants that are looking for a place to rent sometimes, you know, the property managers who have been doing this for a long time may actually have a list of tenants that might be searching for properties to stay at. You can also ask them like how often they visit the properties obviously, the more they do, the better you can ask them what’s the most difficult situation they’ve faced and how they handled it. This is a good way to understand if they’ve encountered more difficult situations and have that type of experience as well as you can see what steps they took when it came to handling difficult situations. If they’re able to handle it. Well, it’s a good sign that you can trust them more so should ask3:00
how they handle repairs, how they screen their tenants. You can even ask them how they handle payments. So you can see if they’re going to pay you out and the tenants pay them through checks or if they handle everything through online payments. I currently have it set up where it’s just checks, it’s probably much easier if it’s all online though. Other things to look for, you might want to check with like their previous landlords and tenants and see if they’ve given good testimonials about this property manager. You also want to make sure that they respond within like an hour when it comes to tenant calls and landlord calls. You want to make sure that they have a good understanding of the rights and responsibilities of tenants and landlords and can handle cases in a fair manner. You want to make sure they know how to manage home improvement in a timely manner within budget. And lastly, you want to make sure they know the protocol for like eviction processes as well as like getting new tenants. So essentially, these are some good screening questions to ask and things to look for when it comes to getting a good property manager. The idea is you want to make sure they understand their duties.4:00
As well as they have experienced when it comes to handling different unique scenarios. So I hope you guys enjoyed this episode, please make sure to rate review and subscribe. It really helps our podcast grow. And thanks again. I’ll see you guys in the next one.Transcribed by https://otter.ai

Resources mentioned:

• Craigslist
• Biggerpockets