They are NOT equipped to handle the inevitable problems that crop up in property management, like what to do when the tenant stops paying rent. Or how to tell the difference between a good, solid tenant and a problem waiting to happen. Or where to advise, how much to ask for rent and deposit.The bottom line is that you really need a property management company, not a so-called full service real estate company that does property management on the side.
Real estate sales in the Oklahoma City area were down 21% in 2009 compared to 2006.
As a result, I’ve noticed that real estate agents have been scrambling to supplement their income. Why? Well, many of the mediocre ones have seen their income from commissions fall by 50% or more. You can certainly understand why they’d be hurting financially. In this blog post, I present to you the problems in hiring an inexperienced property manager / property management company.
Many of these real estate agents with no prior experience in managing properties have been flocking to property management because they think it’s easy money.
The problem is that a real estate agent who has specialized in selling homes to first-time buyers usually doesn’t know the first thing about property management. They have no business forming an Oklahoma City property management company.
It may appear to you that property management is just not all that hard. And you know what? It certainly isn’t rocket science.
The biggest challenge, though, isn’t necessarily that the work is all that tough. It’s not.
The question is, do they have systems to manage your properties effectively.
Not too many companies do a good job at hat because in order to be an effective property manager, you have to earn enough to survive. That requires volume. In addition, you need to cover all the bases.
The last thing to remember is that your management company needs to be licensed to do property management.