Legal requirements: Most states regulate and require licensing of anyone engaged in rental property management for a number of reasons.
Staff requirements: Think about and make a list of each kind of service you want a manager to perform for you.
Screening the manager: One of the most important functions a manager is likely to perform for their property owner is tenant screening. A bad tenant can cost an owner thousands of dollars and ruin your day. A bad manager could cost you everything you own and ruin your life.
Management Agreement Content
A good management agreement should, by necessity, be somewhat detailed. It should clearly define the duties and responsibilities of the manager and of the owner.
Examples of commercial property and other management agreements can be found in our members-only Forms Web .
Bottom Line: ______________ What you see gives you some indication of what you are likely to get, but we have all learned that looks can be deceiving. If you had stopped at the top of the page and selected your property manager from their looks alone . . woe unto you. As you have just read:
- the manager will essentially control your investment
- a property manager represents you with your customers.
- the manager handles the tenant's money and yours.
Selecting a manager is as important as selecting a property or a tenant. It is likely the most important decision you will make relating to real estate investing. Look beyond looks and learn all you can before you make this important decision.
The above topics are discussed in much more depth on our members' Selecting a Property Manager page.
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