A property manager runs the day-to-day operations of your investment property and all of the things that you are not able to physically manage from Australia. They have more involvement with your property than anyone else and you will rely on them to ensure a solid return on your investment. It goes without saying that you need the best property manager you can find.
A property manager is responsible for the ongoing management and maintenance of your investment property. This includes, but is not limited to:
Typically property managers charge a monthly fee of 10% of the monthly rental income. This may drop as low as 5% and stretch as high as 15% depending on the area and the services provided by the property manager. In addition many property managers charge an initiation fee, which is typically around half a month’s rent. There may be additional fees for replacing a tenant, or they may be expected to be reimbursed for advertising costs while finding a tenant. It’s very important when interviewing a prospective property manager that you obtain a very detailed breakdown of their fee structure. If something is unclear then ask for clarification, if you want something changed you are well within your rights to make that request too.
The quality of different property managers in the US varies significantly. Even within the same organization there can be fantastic property managers and terrible ones. When they are such an important component of your investment how do you ensure you’re getting a great one? The short answer is that it can be tough. But you can take a number of steps to reduce the risk of getting a bad one, and increasing the likelihood of getting a good one.
There is no way to tell for certain if someone will be a poor property manager. Someone can appear great on paper, interview well, and then perform horribly. However, there are a few things you can look out for to reduce the risk of ending up with a dud:
As an American Properties member we can connect you with the best property managers in the business. Through our local knowledge and extensive due diligence we have sought out high quality property managers in all of the cities and states we recommend properties in.
All of the property managers we refer you to have been fully vetted;
We take the guesswork out of finding a good property manager, ultimately saving you time and money.
We refer many clients to our property management partners, but only if they provide the highest level of service. If our members inform us that a property manager is performing poorly, the manager risks losing a significant amount of business; this scenario is helpful in encouraging a high level of attention and care.