May 13, 2014
Apartment property management is a very important part of owning a multifamily property. It is not an easy part of it, however, whether you manage your own property or hire professional management.
It is a business in and of itself. So if you are new to multifamily investment and have no experience in real-estate property management, think twice about doing your own property management. You need to be skilled in screening applicants, good at handling uncooperative tenants, and know bookkeeping. There are so many stories of properties that failed because of poor property management.
For most people, it is better to have your apartment property professionally managed. Not only because of the challenges of managing property, but also because for some apartment loans you are required to have professional property management.
On the other hand, it is important that you know how to work with professional property managers if you are going to have your property professionally managed. Choosing a good and reliable property manager is crucial for your success.
You not only want to interview them, but you need to get a list of references you can talk with. Do strong due diligence.
Most importantly, manage your property managers and learn how to manage them. It could be a big mistake to just sign them up and forget to inspect their performances.
We recommend that you keep your eyes glued to their books and regularly inspect your property to make sure everything is taken care of. We have had a number of our customers choose a property manager who stole money from them or did not take good care of the property. In one instance there was an apartment owner who found out that the occupancy rate had dropped down to 55%. They were out of state and had not been in touch with their property manager for a long while.
We feel that the most important phrase pertaining to property management is “due diligence.” It is good to keep this at the forefront of your mind.
You can call me at 214-695-7310 with your questions and for your apartment loan needs. Or I can be reached by email me at firstname.lastname@example.org.
Bruce Painter, Director of Marketing
Business Loan Store