# Entrepreneur Week – Post # 5 – Choosing a management company Investing in real estate is like managing …

<a href="http://bit.ly/2JrhELmIzmhsboa-PostNo.5-selectingamanagementcompanyinvestinginrealestateislikerunningabusinessandmanagingcompanyisworkingours.WhenIteachinvestorinitiallyIlethimraisehimselfpointstothinkaboutwhatisimportanttohiminelectedandasIdictateit,becauseotherwiseHedidnotknowhowtochoose***forhim***Iusuallyhavetwomanagementcompaniesineacharea.Toward the end of the purchase process, I present the investor with advantages and disadvantages of each of the companies, which is appropriate for one investor not suitable for another.Points of reference for selecting a management company: 1. Replacing the management company in the first year – If we first started hiring a management company, we must ensure that we can leave the management district at the notice of about 60 days.Most management companies do not allow this and are registered in the agreement that this agreement can be canceled 60 days before the end of the contract period.If I want to cancel before, we will pay an exit penalty.2. Exclusivity in the sale of the property – it should be noted that in the contractual contract the management company does not have exclusivity in selling the property or receiving a commission in any case in which the property is sold.3. Repairs – Most management companies will use their service personnel to repair malfunctions in the property.Attention should be paid to the following: a.Check that in the contract of engagement they are obliged to bring another bid at least one more than the amount of about $ 1000.B.There is a possibility that you will bring your own professional.4. Availability – a very important issue for two reasons: a.Availability to the tenant when there is a malfunction.The management company is your interior as the owner of the property.If the service is defective, the tenant will treat the property equally.B.Are available for you – when there are problems that require your approval, it is important to take the tests that will be done by the management company.5. Small repairs – In almost every asset management agreement, the management company will note that there is a certain amount designated for repairs that does not require the consent of the owners to repair.Make sure that the amount is reasonable and does not exceed the standard ($ 300-500).6. Payments of property tax, insurance, HOA etc’- Make sure that the management company pays the bills, and I have often encountered a management company that forgot to pay and debt has increased, and if the debt is not paid for a long time, 7. Payment replacement – is a fee determined by the management companies for the introduction of a new tenant This commission is between half and a full month 8. Pictures – When there is a correction to be made, ask for pictures before and after the repair If the management company knows you are following Your expenses, total expenses will probably be lower … 9. Ask for the tenant’s phone – allowed and possible, but not mandatory to talk with the tenant.The action serves two things: a.Tracking the management company.B.Wear is lower because the tenant sees that you care.In summary: If you are an employee – ask yourself how your employer decided to hire you and thought you were the most suitable for work?If you are a business owner – ask yourself how do you know about an employee you are about to recruit that is truly reliable and honest?Wishing you the right choices 😊

Link to the original post at Real Estate United States Facebook – working on a desktop computer (view post has to be approved forum members)reactions can read the original post at the bottom of the current page on the site or post a link to a post on Facebook, and of course you are welcome to join the discussion

• Thanks Ami! As for the tenant's phone, how common is it to contact the tenant? Let's even send him a letter to our house with our e-mail address in case he has a problem that has not been dealt with in time so we know the tenant is satisfied. After all, replacing a tenant costs a lot of money that we want to reduce, and the management team has an interest that we will replace as much as possible
• Important to know! Thanks!
• Great! Thanks