Choosing The Best Rental Property Management Company
Summary: Owning rental property doesn’t have to mean being a hands-on landlord. What you need to know when choosing the best rental property management company.<br> If you’ve been an LMM listener for awhile, you know that rental property is one of the best sources of <a href="https://www.listenmoneymatters.com/owning-rental-property/">passive income</a>. If you don’t want to get calls about leaky roofs in the middle of the night, we’ll teach you what you need to know when choosing the best rental property management company.<br> What is Roofstock?<br> Our guest today is Andy Boyum from Roofstock. <a href="https://www.listenmoneymatters.com/go/roofstock/" target="_blank" rel="noopener">Roofstock</a> is a curated market place for buyers and sellers of single-family rental homes. We wrote an extensive <a href="https://www.listenmoneymatters.com/roofstock-review/">review</a> of the company and interviewed the CEO of the as well (interview is embedded in the review linked above).<br> If you want to invest in rental property but want to be as hands-off as possible, Roofstock lets you do that.<br> Why You Need a Property Management Company<br> Passive income isn’t passive if you have to work for it. If you are getting calls about broken air conditioners and chasing raccoons out of chimneys in the middle of the night, that isn’t passive. Hiring a property management company also lets you invest in far-flung locations.<br> If you live in New York City, you may not be able to afford a local rental property. With a property management company, you can own in more affordable markets because you don’t even have to visit your property, never mind live near it.<br> Staying on top of landlord-tenant laws can be a job in itself, especially if you have rentals in more than one location. A property management company takes care of that for you. Evicting a tenant is the worst case scenario for a landlord. It can get ugly and messy, especially if you don’t know what you’re doing. Your management company can handle the thorny issue with minimal involvement from you.<br> If you don’t hire a management company, you may have to become an employer; hiring a resident manager, a maintenance person, landscaper, etc. Suddenly, you’re dealing with payroll and taxes and a lot of other issues you hadn’t bargained for.<br> <br> What Does a Property Management Company Do?<br> A full-service property management company does pretty much everything. They handle the up-front work of making a home tenant ready, market the property, the details of the lease between the owner and the renter, are on call for emergencies, handle repairs, collect rent, and if the owner decides to sell, the company can handle that too.<br> How to Find a Good Property Manager<br> Roofstock has a very thorough vetting process their local managers must pass. The most important qualifications are responsiveness and transparency. They get referrals from people in the local real estate community, schedule phone interviews where they are asked a series of questions about their background and experience, their due diligence documents are reviewed, a market visit is arranged, and the local manger signs an agreement.<br> The local managers whom Roofstock work with are certified, licensed, and bonded in their local area. If your manager is not living up to their duties, Roofstock can step in to mediate and even fire and replace that manager for you if it’s required.<br> What should you ask of when you’re interviewing management companies? Know exactly what services are offered. You don’t want to find out that you have to handle evictions, especially if you are an <a href="https://www.listenmoneymatters.com/rental-property-lessons/">absentee landlord.</a><br> What are the fees? On average, you can expect to pay between 8-12% of the monthly rent.
