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One of the biggest advantages of the availability of the property manager in place is that they not only do all the actual control for you - the selection of tenants, completion of relevant documentation, inspections, etc. - but they are also mostly of accounting. From all of my property managers, I would like to receive a monthly statement detailing the gross revenues, expenses incurred by their commission and the net amount to my bank account. This makes it very simple accounting.
Generally, property management charge anywhere from 4-15% rental income to manage their properties. Usually most of your portfolio, the lower the commission rate they will be satisfied. Another advantage of using property managers that the less pleasant work eviction notice of rent increase and the notice requiring the tenants to remedy defects in maintaining the property clean and tidy, no longer have to deal with you personally.
Just as when choosing property to buy, or the selection of a real estate agent to work, or the selection of a tradesman to work on your property, this kind of game numbers. Go to the recommendations of friends or other landowners, interview prospective managers, ask them how they were dealing with specific problems in the past, and try them. You can always change them later if you do not see eye to eye. But this is not always so easy to change agents, especially if you buy property with tenants in it.
Let me tell you about the experience I had with the agent in the UK. I bought a property with tenants in it and in the broader sense I am saddled with the agent that originally he had rented for them.
As this was my first investment property, I do not want to have a property management agent for me, I would like to manage himself. But it was not so simple. The agent kept the pledge, because he found the tenant, and though it was my property, he demanded that they pay rent to him, and then on top of that he has denied that the lease and did not pay me. I had no remedy, if I am evicted tenants who ultimately, I had to do. It was all very friendly as the residents knew what was happening. They spent one night away from home to make it legal, then I filed a notice of eviction from the courts to the agent, and he was forced to return the deposit and pay me what he owes me a lease. After that, my tenants came back to me, we signed a new lease, and I managed the property themselves. But, as a warning, it does not always work out so where there is a friendly eviction and snatch your property from another agent's control.
Just because you are using a management company to care for one or more properties, it should not be a foregone conclusion that you always use the same company for any further properties that you purchase in the same area. In fact, the participation of two competing firms may be healthy, that they are each trying to do well you win more clients. This applies to my previous programs on the choice of builders. Always get three quotes for any job and not get complacent with just one builder of all time. The same applies to the agents.
