Working with Property Managers

Real Estate for most investors requires securing tenants to rent the property while waiting for the property to appreciate. One way to manage a property is to employ a property manager to find tenants, collect rent and oversee repairs. The concept of a property manager is considered by some a necessary evil as the investments don't necessarily present themselves where it is practical to self manage (or if you are like many investors don't have time to do this yourself).  In case you need to use a property manager, here are indicators of a good property manager:

• Available and responds promptly to your desired communication medium. I like to use email because of its asynchronous nature
• Has relationships with repair vendors. Some property management companies do their own repairs. This is not necessarily a red flag, but you want to make sure the repair costs are reasonable. One thing to be aware of is that many property management contracts charge a fee for overseeing repairs, so make sure the repairs costs are not artificially inflated. 
• Perform periodic property inspections. This can help detect problem tenants early. 
• Own their own investment property. This will help them think from an investor perspective. 
• Advertise effectively for the market. Craig's list is effective in markets like Phoenix. 
• Distribution of rent. Some property managers offer direct deposit which will save a trip to the bank and the mailing time.
• Relationship with a collection manager. Occasionally you may have tenants who break the lease, move out without paying, or damage the property. Turning them over to a collection agency can help you recover some of the money as well as possibly impacting the tenants credit.