ow do you feel about your property management company?
Does that sound like a silly ques‐ on? What diﬀerence could it possibly make? A er all, it’s just a business rela onship, right? Well, business rela onships are no diﬀerent than any other rela on‐ ship. A rela onship is like a dance. Some mes you have a great part‐ ner, some mes...no so much. Then there are mes when no ma er how o en that person holding you steps on your feet, you keep taking it, o en making excuses...hoping that, with prac‐ ce, they will become the Ginger Rodgers to your Fred Astaire. And maybe they will. Maybe...with enough prac ce they will eventu‐ ally be the perfect partner. But, maybe not. So ask yourself, is your stepping on your feet far too o en. Are you making excuses or are you just the type of person who doesn’t know the diﬀerence. What should you do? Well, first of you you need to de‐ fine the parameters of the rela‐ onship. Is it a love‐hate rela on‐
ship? Pure Love...Deep Ha‐ tred...Wishy‐Washy? Depending on how you approach rela on‐ ships can have a direct bearing on whether or not you are in a healthy one with your property management company. Do you look out for yourself? Are you worried about hur ng other people’s feelings, are you a door‐ mat? Or, do you put yourself first and understand that you have needs that should be met...you look out for number one! Far too many property owners act as creatures of habit and con nue a dysfunc onal rela onship with a less‐than‐qualified manager. Why? Well, some mes the man‐ ager is actually the sales agent. They developed a rela onship with their client that felt comfort‐ able...like an old pair of shoes. A er the deal closed it seemed natural for them to take over the job of manager. Doing so hopeful‐ ly ensured that the agent would keep the future lis ng if by some chance their client decided to sell some me down the road. Unfor‐ tunately, and some mes un‐ wi ngly they made promises that couldn’t be kept . They lacked the knowledge and experience necessary to professionally manage a rental property. More o en than not that seems to be the case, especial‐ ly in the current depressed real estate market. Agents looking for addi onal income streams are represen ng themselves as property managers for their own financial gain. They get in over their heads thinking, like
so many people, that property management is ‘a piece of cake’. Unfortunately for them, and the owners they represent, there is a good deal more to property man‐ agement than meets the eye. Pro‐ fessional management requires experience. A good management team has a CPM® on staﬀ. Ideally, the firm should exclusively man‐ age proper es and not take lis ngs or do sales. They should have a proven track record. Firms that fit this descrip on should know the laws related to rental proper es as well as be able to protect the owner in the event of legal evic ons, etc. They are experienced in leasing and filling a vacancy sooner, rather than later. They understand what a tenant is looking for and can help an owner by developing a plan to meet goals. So, ask yourself “am I enjoying the dance?” With the season of ro‐ mance upon us, maybe it’s me to break up and look for true love. Then again, if they are making you happy maybe it’s me to send some roses or at least a li le note of gra tude. Property managers (the good ones at least) work long hours and are helping you find and/or maintain financial success with regards to your rental prop‐ erty. They deserve to feel the love! For more informa on about what a good property manage‐ ment firm can do for you please contact TJ Loegering, Jr., Designat‐ ed Broker of REMS, Inc. directly at 623‐977‐6011 or email him at firstname.lastname@example.org.
expenses is the only real way an in‐ vestor can make a decision. Con‐ sul ng a professional property man‐ ager can help an investor understand the rental market and may help them decide how to deal with the invest‐ ment both short and long term. In the event that the investment seems unsalvageable there are places to turn for help. Many investors have turned to their lender and successful‐ ly modified their loan. Even a five year modifica on may give some re‐ lief. Others have sought the help of a realtor specializing in short sales and sold their property. S ll others have set up “rent‐to‐own*) scenarios that have given them the much needed relief they were looking for.
ove it or leave it. Is your property an asset or a liability?
The vola lity of today’s real estate market has le so many homeowners as well as investment property own‐ ers wondering what to do next. May‐ be they purchased their property on the high end of the market and are now in the all too common predica‐ ment of being “upside down”. They owe significantly more than the prop‐ erty is worth. There are choices and strategies that can poten ally be explored. Firstly, it’s impera ve to sit down and take a careful look at the cost of ownership. For the purpose of this ar cle let’s take a look at investment proper es. An investment property that was pur‐ chased on the high end of the market
may need to garner higher rental in‐ come in order for the owner to stay afloat. Say for example the rental home was purchased for $295K. The monthly mortgage, depending on the amount financed and interest rate may be anywhere from $1500‐$2000 per month. Should the investor just consider the feasibility of finding a renter who can cover the mortgage? No, not necessarily. There are many other costs involved in proper‐ ty ownership; expenses such as maintenance, HOA dues, rental mar‐ ke ng, down me, etc. Being well informed about the rental market and taking a careful, honest assessment of
hatever the case may be, more o en than not a con‐ sulta on with a property manage‐ ment company prior to the purchase may have helped. It certainly could‐ n’t have hurt! Most importantly be‐ fore you decide to love it or leave it you should consult with a real estate a orney and tax professional. Call REMS for more info at 623‐977‐6011. *Always consult a professional real‐ tor/manager.
Developing Trus ng Rela onships looking at their bo om line. They want ble. O en they oﬀer discounts to our with vendors. How it can help your to sell their services and earn as much clients because we do give them steady as possible on the call. They’re not sure work. bo om line. you will ever call them back. They don’t Also, we check their work when it’s Trust is impera ve in so many areas of have a rela onship built on trust. complete before a check is issued. This our lives. Be it our doctor, den st, law‐ gives the vendor a clear message that My advice is to find a vendor (carpet yer or accountant, for the most part the importance of being in a trus ng rela‐ cleaners to electricians, landscapers to we respect our owners and expect onship with important people who are plumbers) and s ck with them. If they them to do the same. involved in our lives is a given. Why is can count on your business you’ll prob‐ So next me you log onto a website to that the case? Presumably we feel they ably be able to count on them to look find a ‘cheap fix’ remember, a penny will have our best interest at heart. a er your best interest. saved isn’t always a penny earned. More o en than not, it’s probably true. Trus ng rela onships with vendors is at For a free consulta on remember to Although some property owners under‐ the heart of property management. We contact me at email@example.com or call stand the importance of trus ng the screen vendors and make sure we meet me at 623‐977‐6011 and let’s talk about contractors, there are s ll some who with them prior to ordering any work. your valuable asset. will bounce all around the yellow pages We check that their business is reputa‐ of the phone book, or worse...Craigslist, to find the ‘cheapest’ deal. Not surprisingly, as a professional prop‐ erty manager I could write a book filled with endless horror stories of owners who, in an a empt to save a buck got badly burned u lizing what I’d like to call “the bargain hunter strategy”. Probably the finest example of this is exemplified with an investment proper‐ ty owner who, last year (before I man‐ aged his property) hired an HVAC ven‐ dor who adver sed on craigslist. The owner, who lives in California was elat‐ ed to find someone who would install a ‘reburbished’ air condi oner at his con‐ do. Prior es mates from reputable ven‐ dors ranged from $3000‐$3500! The craigslist vendor quoted $1000 and the owner was hooked. Less than a year later the unit has completely died...the vendor (who was unlicensed) is long gone. Sure, you’re probably thinking that if the owner had just made sure he had a license the problem would never hap‐ pened. Not necessarily. Even licensed, bonded and insured contractors are
Real Estate Management Services, Inc.
We cooperate and never compete. We provide the following services so you don’t have to: Advertising Periodic inspections Late notices Rental Comps Bookkeeping/accounting Financial statements to owner Tenant screening Evictions/Legal Maintenance calls Tenant communication Vendor screening Rental Tax (compliance with the law) Networking
Realtors: We can help you take control. As a professional realtor you understand all too well how the current market is impac ng your bo om line. Trying to hold onto
You keep your client plus, Renter becomes potential buyer! Additional income stream (we pay commission for each signed management contract).
Ask about how you can earn a monthly percentage on 10 or more units.
every lis ng is crucial in today’s economy. As a result you probably end up managing property in an a empt to maintain the lis ng and eventually make your commission when the property sells. Let’s face it, the management end of the business is me consuming and is preven ng you from genera ng more business. So, what’s the solu on? How do you keep your lis ng and get out from under the day to day management of the property? We’ll tell you how. We are a full service property management company devoted exclusively to property management. We don’t even take lis ngs or do sales. We work with realtors and their clients and take the burden and liability of property management out of your hands. And, when the me is right, your client is right there wai ng, and so is your commission. So call us today….you’ll be so glad that you did!
7440 W. Sunnyside Drive Peoria, AZ 85345
623.977.6011 ph 623.444.9889 fax