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Five Ways to Spot a Bad Property Manager

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SCOTTSDALE, Ariz. - April 4, 2019 - Rezul -- A good property manager can help maximize the cash flow on your income property. But, having a property manager comes with a cost. You can expect to pay 7 to 12 percent of the monthly rent to the property management company. And, a bad property manager can kill your cash flow and leave you with a negative balance. Here are five common red flags to look out for when dealing with property managers:

1. Your property manager doesn't keep you updated

A good property manager is proactive and reports to you regularly. He or she should let you know when your tenant is behind on rent, how the tenant plans to catch up and if the property manager has taken any steps to begin the eviction process. You shouldn't have to ask why your tenant only paid $300 when the house rents for $900.

2. Your property manager doesn't include invoices or receipts

Your property manager should let you know when maintenance calls and repairs are being made to your property. Depending on the cost of the project, a good property manager will also provide estimates prior to beginning work. All property managers, however, should provide receipts and invoices signed by the person who performed the work.

3. Your property manager doesn't advertise your vacant property

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Effective advertising is the key to minimizing vacancies for your property. Expect to have your property listed on popular sites like Zillow, Trulia and HotPads. An accurate description and quality photographs of the interior and exterior of the home should also be included. Look for your property on these sites when you have or will have a vacancy to ensure your income property is reaching potential tenants.

4. Your property manager is withholding the security deposit

If the tenant breaks the lease or trashes your house, the entire security deposit should go towards fixing the house to get it rent-ready for the next tenant. If the property manager is withholding the security deposit, you should review the lease agreement, make sure a security deposit was received and call your investment counselor.

5. Your property manager is withholding rent

Many property managers take up to 40 days to pay you because they're using the previous month's rent to cover expenses that occur during the month. But if it's taking longer than normal, give your property manager a call and figure out what's going on.

What to do if you have a bad property manager

If you encounter any of the problems listed above, let the property manager know you're unsatisfied with the job he or she is doing. If the services you receive from your property manager don't improve, consider looking for a new property management company (your investment counselor may be able to provide you with a referral) or manage the property yourself.

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Technology has made self-management easier than it's been in the past and, you don't have to live near your income property to manage it yourself. There are several property management programs on the market. Free property management software, like Cozy, can easily collect online rent payments, accept rental applications, screen tenants and request credit reports. To learn more about self-management, contact an investment counselor at jasonhartman.com.

About Jasonhartman.com

Jason Hartman has been involved in several thousand real estate transactions and has owned income properties in 11 states and 17 cities. His company helps people achieve The American Dream of financial freedom by purchasing income property in prudent markets nationwide. Jason's Complete Solution for Real Estate Investors™ is a comprehensive system providing real estate investors with education, research, resources and technology to deal with all areas of their income property investment needs.

Through our podcasts, educational events, referrals, mentoring and software to track your investments, investors can easily locate, finance and purchase properties in these exceptional markets with confidence and peace of mind. Visit www.JasonHartman.com and one of our investment counselors will provide your free portfolio makeover.

Source: Jasonhartman.com
Filed Under: Real Estate

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