EFFECTIVE PROPERTY MANAGEMENT

You want to invest in Real Estate, however y\ou are holding back because you are inexperienced or you do not have the time to efficiently look after your investment. Your problem is solved. Consider hiring a solid and reputable property management company that specializes in the area of real estate you are purchasing.

Ideally to be cost effective the investment should be large enough (15 units or more) to sustain the extra management fees. It is important to note that good property management will pay for itself in the long run. If not in control, vacancy, bad debt and high maintenance cost can quickly destroy any cash flow. When shopping for a good property management company, make sure you ask for references and inquire on what type of real estate they specialize in.

The following is a list of duties that should be covered in their service.

• Cost effective rental marketing and tenant retention

• Efficient maintenance programs

• Complete monthly reports of property activity

• On-site managers

• Paralegal service for tenant matters

• Consulting and arranging on mortgage refinancing

• Serving all legal notices per the Tenant Protection Act

Management fees will range from 3% (for a very large complex) to 8% for smaller buildings. The fees are calculated based on the percentage times the collection for the month of invoicing.