I have had lots of people over the years ask me, in my opinion, what is the important thing about investing actual estate? Everybody always assumes its price, location or timing the market successfully. After over 1300 real estate transactions primarily to investors worldwide, I can say any doubt that property management is the single fundamental piece of the investing puzzle. In real estate, you can make an error on price, pick an iffy neighborhood, or hire a bad contractor and certainly profitable. Hire the wrong property manager and hand calculators lose your shirt within hours! Don’t get me wrong, location, price and rehab are huge factors in real estate investing and are very important. With the right property management company in place if you can make a mistake or experience a down turn in a market or neighborhood and still realize a good return through positive cash flow. A good property manager protects ignore the in the long-term.
Obviously, the next real question is “how do I choose a good property manager”? Suggestions several tips on picking a good management company. This does not necessarily mean you; someone else will be managing your property.
Get a referral. Typically, when you invest, lot people in your peer group or circle of influence that are investing in the same market you are or know of an individual who is also investing during this market. Ask them who they are using, who they designed to use, and why they switched. Find out the actual like about their management company but more importantly find out what like about them. The management company may perform great job of placing tenants but are missing in the communication department; without communication, you’re sunk! Associated with your management company could be very important for the investor’s peace of mind. It comes with nothing worse than leaving a message or sending a couple of emails and all you hear are crickets in the backdrop. At first, you assume these are busy and will get to you soon. After a while, though, investors start wondering why no the actual first is responding and that’s when panic sets in. Did the tenant leave? Did the management company run off with my money? DID MY HOUSE BURN On the ground? Generally, none of the above is true but a good property owner will respond within 24 hours of your inquiry.
Ask the management company that you are considering doing business with for references. Ideally, I believe you want 5 to 10 references from previous clients as well as current clients that happen to using the management company longer than 1 current year. If they are not willing give you with any past clients, pass on folks. When you get the references, Give them a call. Ask them the same questions on what they like and don’t like.
Get a report on policies and procedures from the management company. You might want to know how have marketing of the properties for tenants, late payments, evictions, maintenance calls, inspections, accounting, owner disbursements, etc. A good management company can have this information accessible.
Strawberry Property Management Las Vegas
3651 S Lindell Rd d432, Las Vegas, NV 89103
(702) 329-8899