10 Questions you should ask about Property Management
There are a few questions you should ask when choosing a property management company. First, ensure the property manager you choose has solid screening criteria to protect your interests. Next, ask about their fair housing compliance and fluency with fair housing laws. Next, make sure they have sample lease agreements for your properties. Then, ask about their fee structure and schedule for visiting properties. You will hopefully feel much better about Property Management Aurora, CO after learning the facts.
When it comes to tenant screening questions, you can’t go wrong. It would be best to ask about a tenant’s address, social security number, and email address. It will allow you to check their identity, confirm their employment and education history, and check if they have any criminal convictions. In addition, background checks will help you strengthen your decision-making processes. However, remember that some states do not require tenant screening questions.
Before renting a property, landlords should ask about their timeframe and the likelihood of vacancy. The best time to begin tenant screening is before the current tenant vacates the property. The sooner the property is advertised, the less time it will be vacant after turnover. If the property cannot be occupied immediately, an interested applicant should not proceed further. It is not a good idea to rent to someone who wants to move in months from now.
How much money does your property management company have in its maintenance reserve? While it’s unlikely that the property manager will be willing to pay for every single item that needs repair, you should be able to know if the costs will be reasonable. Many property managers keep this money on file. Then, when the need arises, the property manager can use the funds to make repairs without asking for payment from you.
When calculating the maintenance reserve, the company should calculate it using the Peters formula. This formula requires each unit owner to contribute a certain amount to the monthly reserve for repairs, maintenance, and other common property issues. It includes the estimated cost per square foot over the next eighty years. It does not take into account the property’s age or the cost of construction, or the cost of janitor services. This formula often produces very high maintenance reserves.
Fluency in fair housing laws
If you own rental property, it’s important to understand fair housing laws. These laws apply to landlords in all 50 states. While FHA does not apply to landlords who manage four units or fewer properties, Massachusetts’ fair housing law applies to all property types except for two-family houses. In addition to protecting tenants, fair housing advocates stress that being more inclusive will help you grow your business and attract quality tenants. Moreover, your policies may impact the reputation of your business, and avoiding discrimination lawsuits is crucial.
First, make sure your employees understand these laws. The laws against housing discrimination are complex and can affect even the most experienced property managers. Learning the basics of fair housing is essential before hiring new staff members or conducting any public interaction. Whether new to property management, complete a comprehensive training session before engaging in any public interaction. The training should include both new hires and experienced staff members.
Cost of hiring a property manager
The cost of hiring a property manager depends on the company’s services. The fee ranges from six to twelve percent of the monthly rent for single-family homes, while smaller properties and portfolios generally pay less. In general, expect to pay between 10 and 15% of your monthly rental income. The fee will also depend on the size of your property and the number of tenants you have. Some property managers charge a flat monthly fee, while others charge a flat fee per unit.
While some property managers charge a monthly management fee, this can be expensive in the long run. The management fees for a rental property can quickly add up if you don’t hire a good property manager. However, it’s worth the cost if you want successful rental property management. Hiring a good property manage will make the entire process easier and ultimately save you money. A good property manager will help you avoid common pitfalls and maximize your rental income.