A guide to finding a good property manager

Passive real estate investors can focus on growing their portfolios while delegating daily details such as property maintenance issues, rent collection, and tenant relations to someone else. But if you want the cash flow from your rental properties handled properly it’s important that they have a good manager who knows what he or she is doing!

What to look for in a property manager

It’s important that you find the right property manager in San Diego for your investment properties. When choosing one, make sure they have experience in managing high-vacancy buildings and can screen potential tenants carefully to ensure no one damages or messes up their rental unit!

The following factors should be considered when choosing a rental property manager:

• Communication through phone calls, emails, or texts
• Type and frequency of communication
• How fast the property manager responds to inquiries
• Knowledge of the rental property type you want to invest in
• Previous experience filling vacancies at fair market rent
• A basic understanding of income tax, real estate tax, and accounting practices
• A basic understanding of the various tools and software available to manage properties
• Comparing the fee structure of property managers in the same market

What to look for in a good property manager

When you’re looking for a good property manager in San Diego, it can be hard to know where and how best to start. Some people might think they need an expert in all aspects of managing properties while others specialize only on single-family rentals or small multifamily apartments; but no matter what type your business is (or if there’s more than one), here are six steps that will help find the perfect match:

1. Ask for referrals

Several people should be asked for referrals from your network. Among the best property manager in San Diego are:

• Fellow real estate investors
• Real estate agents and brokers
• Real estate attorneys
• Mortgage brokers
• Escrow companies
• Contractors such as HVAC and landscaping companies

2. Read reviews of property management companies online

When you begin investing in long-distance real estate, you may still be building your local team. Luckily, you can research property managers online in several ways:

• Look up “residential property manager” + your city name on the Internet
• Yelp and Better Business Bureau for ratings, customer, and client reviews
• Advertisement on Craigslist for property managers
• Monitoring of performance on Roofstock

3. Follow a standard interview process

During your initial interview process, it’s important to interview several property managers. Some questions to ask when interviewing a real estate property manager are:

• Business experience
• Number of full-time and part-time employees
• Total number of properties managed in current and previous years
• The typical length of client relationship
• Locations of properties within the city
• The vacancy rate at any time
• The method used by the property manager to determine fair market rent
• A method for identifying potential tenants and qualifying them
• How often the property manager inspects and reports on the property
• When and how owner distributions occur
• When and how tenant rent payments and repair requests are submitted online

4. Verify certifications and licenses

Whether you’re a first-time property manager or an experienced one, it’s important to make sure that your state licenses are up-to-date. You can check with the Department of Real Estate and Secretary of State offices about any expired or rendered ones on file before starting work as their representative in order to avoid costly fines!

5. Understand your property management contract

Property management agreements are a legally binding contract between you and the property manager. The general terms of your agreement will depend on state law as well as regulations from real estate department, but it’s likely that there is more than one page worth of details included in these documents!

When reviewing a property management contract, you should look for the following terms:

• Property management agreement start and end dates
• Fixed fees versus percentages of revenue, leasing fees, and start-up fees for new accounts
• Services such as overseeing major renovations and evicting tenants are charged extra
• Communication and financial reporting
• Following the collection of rent and payment of operating expenses, owner disbursements are made
• As well as maintaining a reserve account and obtaining adequate insurance coverage
• The owner’s restrictions include securing tenants, entering the property without permission, and listing the property for sale without informing the property manager
• The owner agrees to abide by local, state, and federal fair housing laws
• Property managers should carry general liability insurance and errors and omissions insurance.
• Liability of property managers, “hold harmless” provisions, and a “reasonable care” clause that indicates the manager will take reasonable care in hiring third parties