What is property management?

Property management is the process of minimizing and managing risk between owner and tenant. With any investment, there is an associated risk. As an owner of an investment property you hold a certain amount of risk. Risk with the property itself, risk with prospects and risk with tenants. Although a property manager cannot eliminate risk altogether, a good property manager can minimize an owner’s risk tremendously.

Why not manage your own property?

The number one reason that people want to manage their own property is to save money. However, there is always an inherent cost to owning real estate, whether it is your own home or your investment property. When you look at the amount of time and energy that goes into properly managing your investment you will find that it might end up costing you more in both time and money than if you were to hire a property manager.

What do property managers do?

Basically, we are the liaison between you and the tenant. A full-service property manager handles all communication between you and the tenant. We ensure that all the county, state and federal laws are met. The Arizona Landlord Tenant Act is our Bible. It protects both you and the tenant. Please contact me to discuss all the services that I provide as your property manager.

What do you look for in a property manager or management company?

A good property management company is a company that handles property management full-time. It is not one or two real estate agents trying their luck waiting for the sales market to improve. And a good property manager is one who is also full-time and has some experience behind them.

When shopping around for a property manager or management company, do not compare by price alone. Remember, you get what you pay for. There is an inherent cost of owning real estate. As an owner of an investment property, be prepared for a certain amount of expenses. If a company or manger is offering lower fees than other companies, find out why. You may not really be getting a good deal. Or there could be hidden fees you are not aware of. Make sure you are comparing apples to apples.

A good property manager takes calls on the weekends. We all need a break. Property managers are entitled to a weekend off just as anyone else is, however, a good property manager will at least be on call to handle repairs and rental showings.

A good management company has in place the process to handle all business licenses and county registrations that are required by law for each individual property. If your property manager does not do this, you as the owner are liable and could be fined monetarily.

A property manager does periodic property evaluations. An owner should always be aware of the condition of the property. It is the responsibility of the property manager to inform the owner of necessary repairs/maintenance items but it is the owner responsibility to ensure that there is money in the reserve account to get these repairs/maintenance items completed in a timely manner.

A property management company must have and manage a trust bank account for rents, tenant’s deposits and reserve monies according to Arizona Department of Real Estate regulations as well as Arizona Revised Statute §32-2174. Find out how your tenant’s money and your own money are being managed. In addition, how is your property manager/management company going to communicate with you regarding your money? Do they provide reporting, if so, how often?

You need to ensure that all leases and property management agreements used by the company you hire have been reviewed by an attorney or approved by the Arizona Association of Realtors. Using self-made forms will eventually cost you.

If you are having your property management company help you find a tenant, make sure that they have a marketing program. Also, how are they screening your tenant’s? They need to provide a credit AND criminal background check. Also,

The property management company or the manager should belong to a professional organization that focuses on their industry. These types of organizations keep the company as well as its managers knowledgeable of current trends in the industry and new laws that are in the works. They are also held to a higher standard in their business which really does make a difference when we represent you, our client.

These are some of the qualities that you as an owner need to look for when hiring a manager/management company. Price is always important, but it is not everything. Saving 2% a month on management fees will not do you any good if you get monetarily fined for not meeting legal requirements or lost monthly rents.

With 7+ years of property management experience and a combined 35 years of real estate experience along with my company’s broker, I invite you to contact me to discuss your goals and to provide information about our property management program.

To receive additional information about Property Management fill out the form below:

Montana Vista Realty
5824 W. Thunder Cloud Rd. • Queen Creek, AZ 85142
Direct: 480.244.6156 • Office: 480.888.1288
Fax 800.741.1742

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