| Investors in all types of leasing properties will | | | | property in safe operating condition. They should |
| need a real estate management group to | | | | keep tenants satisfied and the building in good |
| manage, market and maintain their investment. | | | | repair. They provide services to tenant questions, |
| The group handles the monthly details and | | | | concerns and any emergencies. |
| collections of each property. | | | | They are responsible for collecting rent and other |
| There are several important factors the investor | | | | deposits and posting them on a daily basis in the |
| should look for in the company they choose. A | | | | accounting software. They are also responsible |
| real estate management group should carry | | | | for evictions, bill payments to vendors, utility |
| general liability and workers compensation | | | | companies and the mortgage payment. |
| insurance on all their employees. Do they have a | | | | The real estate management group will provide an |
| fidelity bond? Ask to see proof of the coverage | | | | annual and monthly financial report that includes |
| of both insurance and the bond. The company | | | | rents and check registers. They determine and |
| fees should be consistent with other management | | | | recommend increases in rents and lease renewals. |
| groups without a lot of variation. If not, why are | | | | The group supervises all employees. The building |
| they lower or higher? Check references about the | | | | manager, the groundskeepers and others assigned |
| performance of the company and its employees. | | | | to the property are hired, fired and paid by the |
| The investor should ask how many years the | | | | group. |
| company has been in business. Find out the | | | | The management group does the marketing of |
| specializations of the group. Do they manage | | | | the property for renting as well. They create |
| mostly small apartment buildings and multifamily | | | | effective and creative marketing sources to |
| homes or are they specialized in business or | | | | handle the advertising of the investment. Many |
| industrial property? Do they diversify, managing | | | | groups have full staff members to handle |
| residential and commercial investments? What is | | | | everything from brochures to websites to local |
| their reputation in the industry? How do they | | | | advertising. |
| manage the property? What computer system | | | | Other services a management group will offer |
| and software programs do they use? Is it | | | | include some of the following. These are usually |
| current? What type of computer back up system | | | | offered at a separate fee. |
| do they use? | | | | They will do the commercial leasing through a |
| The real estate management group is responsible | | | | leasing broker. Develop a management plan that |
| for increasing the net operating income of the | | | | includes the neighborhood and regional analysis, |
| investment, increasing the property value and | | | | financial status and any recommendations. They |
| protecting the property through insurance, | | | | will act as the brokerage for selling the property |
| inspections and routine maintenance. Many of the | | | | and supervise any large improvement projects. |
| services provided by the group are through third | | | | Some groups offer consulting services as well. |
| party contracts. | | | | An investor relies on a good real estate |
| The companies offer a variety of services | | | | management group to manage his investments. |
| depending on the investors needs. Some of the | | | | The investor will research several management |
| basic services provided by a management group | | | | groups before hiring. They will want to have a |
| include the following items. | | | | mutually beneficial working relationship that will |
| Maintenance needs. They will contract with | | | | increase rents, protect his property and boost the |
| suppliers and service providers to keep the | | | | value of the property. |