Rental real estate is a great way to build passive income, keep your home if you have to temporarily move out of the area, and invest in physical property. But part of being successful in rental real estate is having a strong team. The MVP on your team will be your property manager.
Do I have to use a property manager?
No, if you have the time and interest, you can manage your property yourself. Some people prefer to have this control and involvement in the day-to-day goings on, while others are happy to pay someone else to do this for them. Property management normally includes advertising your property for rent, screening potential tenants, conducting move in and move out inspections, and arranging for maintenance to be done as needed. If you chose to pay a professional property manager, you can expect to pay around 10% of the monthly rent per month as their fee.
Questions to ask a potential property manager
If you are ready to interview a potential property manager, come ready with questions that will help you determine if it’s a good fit.
- How many properties do you currently manage?
- How long have you been a property manager?
- How do you generally communicate with property owners? With tenants?
- Do you require us to maintain a funded repair or maintenance account that you will have access to?
- When would you want or need our approval to arrange repairs or maintenance?
- How much do you charge for property management?
- What tools do you use to screen tenants?
- Can you provide references to other clients that you work with?
Finding a great property manager can make your life easier and keep your tenants happy.