Story time from the broker
Recently I’ve taken over management of some rental properties where the brokers of the previous management companies (2 different ones) have gone MIA. We cannot even get them to provide the leases for existing tenants. At least one of them has apparently walked away with 2 months of rent monies plus tenant security deposits for all properties under their management. No telling how many people she has hurt, with 50+ agents in her office. It’s true: some property managers SUCK. Who you choose to manage your real estate investment is important!
In addition, some new clients state, when asked for ID or other information to verify they are the actual owners of property, that they “didn’t have to do that” with other property managers. SERIOUSLY???
A few years ago, I was a Registered Agent here in Nevada. Part of that service involved mail receiving. One day, a HUD investigating agent walked into my office to question me about a longer term client. (His account came over when I bought the business.) Turned out, that person had been using similar services for YEARS to collect rent monies for properties he never owned. That is called fraud. He was doing the same with several other agents in different states, according to the HUD agent.
We verify property ownership
As policy, I require every new client to provide documentation and ID to show they are the actual owner(s), and/or authorized signer(s) for the owner, up front. Sometimes this can take a few days. We will wait. We cannot do anything with the property without this information. If we don’t verify, what’s to stop someone from using a property manager in the same way that other guy was using registered agents?? I sure don’t want to be caught up in someone else’s fraud. As a licensed real estate broker, I could be held at least partially responsible.
Oftentimes, we lose a potential client because I wasn’t personally able to take their call the instant they wanted. Sometimes when I call them back within a few hours, they gloat that they already hired someone else who answered the phone immediately. That’s ok. I probably don’t want to deal with someone whose only criteria for a property management company is “how fast can you take my call”. I have to wonder if the other property manager even bothered to get the client’s ID before signing the contract.
You invested in real estate; Now invest in a good property manager
Now, you have invested your hard earned money and credit into real estate. This is probably by far your biggest investment. It would be wise to take a little time to check out the management company before jumping into a contract. Are they actually LICENSED to act as a property manager in that state? Do they have a good reputation? (Company size is not really the best indicator here.) Do they take the time in the beginning to verify they are dealing with the legitimate owner of the property??? Also, how do they screen tenants – do they have stated rental requirements?
Furthermore, if a property manager doesn’t even bother to verify property ownership, then how well do you think they might handle a problem tenant? Or how well might they help protect you from potential lawsuits?
Who you hire to manage your real estate investment MATTERS. Take a little time to check them out, more than just how fast they take your call. Here are some stats about how we help landlords rent out their homes FAST. If you have questions, you can also call us directly at (702) 329-8899. If the broker is busy, it might take a few hours to return your call, but it will be worth your while.