You may the owner of some properties and interested in managing them without seeking professional help. Even though you can save money, the task has its fair share of advantages and disadvantages. You can choose to be ‘hands-on’ or hire the services of an apartment manager.
Now, if you choose to use a property manager, it’s essential that you know the questions to ask and the charges to expect. Of course, just like in any competitive market, you’ll get property managers with different fees and services. So, if you’re not familiar with the requirements of an apartment manager, here’s a simple checklist to get you started. Take a look!
How much does an apartment management NYC company charge for placement of a new tenant? Well, the standard amount would be something ranging from half to full months of rent. Make sure you know how the apartment management advertises or looks for tenants. Most of the time, managers with low leasing fees tend to get tenants fast.
It’s important to take the process of leasing into consideration. If you ignore this, you’ll end up paying more for vacancy especially if it takes too long for the manager to place a tenant in the apartment.
Lastly, it’s crucial that you understand how the apartment manager screens applicants. At the minimum he or she should:
- Verify income
- Obtain potential tenant’s credit reports
- Run a criminal background check
- Check for rental references to understand an individual’s rental history
All apartment managers charge a certain amount of money monthly for managing your property. This ranges typically somewhere between 7% and 10% of the gross monthly rental charges. So, an essential question to ask any property is if he or she charges against the actual rent collected or monthly regardless of whether there’s a tenant living in the apartment or not. It’s also important to understand the kind of services included in their management fee.
This is arguably the most crucial factor in property management. You might get an apartment manager that surpasses the entire competition in almost every other category. However, if they lack a robust and affordable repair solution as well as turn-over expenses, you might end up incurring more costs.
A good number of apartment managers outsource repair work from third-party entities that may charge exaggerated handyman rates. On the other hand, you’ll find others with a staff of handymen who handle repairs at an affordable price.
Markets are known to fluctuate especially when it comes to apartment management. However, by understanding the above basics, choosing a reputable management company will be quite easy. Remember that, even if it’s a single estate of 30 houses of a large piece of land with more than 1000 homes, you need to be comfortable with the person or group you choose to handle your property. Dealing with people of all walks who rent your apartments is not a walk in the park. Leave the task to the professionals.