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Hi, guys it’s Janet from Gold Medal again and today with the topic of this video, is how to make sure you’re choosing the right property management company for you. Regardless of whether you are a long-term serious investor or you’re a first time investor or you’re a homeowner and you just received PCS Orders and you aren’t really sure what to do with your house. Hopefully this video will answer some of those questions for you. At Gold Medal when we are interviewing a prospective owner and the prospective owner is interviewing us we look for what we call a vision match. Now what is that? It’s basically making sure that our goals, objectives and our beliefs around property management align with each other because a lot of times having a property manager is a lot like being married. You want to make sure you have the same goals and objectives. As an example, at Gold Medal one of our core values is equal respect for owners and tenants. So, if that isn’t a belief that you could align with, then we might not be a good fit for you if you’re an investor that only wants to do the bare minimum maintenance and make sure we collect the rents and you don’t really care about anything else then we may not be the best fit for you. It really depends on how you want to be treated as an owner and how you believe that your tenants should be treated in return. All of those things are very important discussions to have with a potential property manager. If you are looking for a property manager in central Texas, I hope that you will give us a call so that we could interview each other and see if we have that vision match. We look forward to hearing from you soon and I’ll say goodbye now until the next time!
Most people who call us want to know how much property management costs. So today, we’re going to talk about the typical fees that are involved when you hire a professional property manager. Since this topic has a lot of information to cover, we’re doing a two part series on it. This is part one, so be sure to catch the follow up video. Management Agreement The topic of management fees should be discussed when you’re interviewing a property manager. All of the specifics and the terms and conditions should be outlined in the management agreement. If you are interviewing a property manager who is hesitant to speak frankly and openly with you about fees, it may be a red flag and you might want to keep looking. Property Management Fee The property management fee itself is the most common expense that a company will charge you. Every management agreement will have a monthly fee. Sometimes it’s a flat fee, but in most cases in our area, it’s a percentage of the rent that is charged for the unit. Ask if the property manager charges that management fee even when the property is vacant. This is important because if your property manager is getting paid regardless of whether you are receiving rents, you might not get the assertive behavior you want in a property manager to get that property rented. Property managers aren’t going to be as eager to secure a tenant for you if they’re getting paid anyway. So make note of that. Termination Fees If you’re not happy with the service you’re getting from your property manager, you’ll need to know how to terminate the agreement. In some cases, a termination fee is a flat charge that is paid one time and allows you to terminate your property management agreement. In other cases, the management company will continue to charge the fee and will accelerate the charges due through the end of the term of your current lease on your property.
Today I’m sharing an interesting question that we received via our website last week. The question was: why do Army personnel choose to work with Gold Medal Property Management? That’s a question we are happy and honored to answer. Business Building and Army History If you have seen any of our videos, you know that my husband Keith is retired military. He spent nearly 21 years serving in the Army, and we have had the opportunity and the luxury of building our company from the ground up. We designed it with a business plan that we wanted to be proud of. So, the primary reason that so many Army personnel and their families choose to hire us is our philosophy that PCS-ing or ETS-ing or deploying is stressful enough. You have a lot to worry about. We designed our business model as an end-to-end solution for our homeowners. You can worry about where you’re going and not worry about where you’re leaving. Full Service Property Management in Killeen After you select us as your professional property management company, we take over for you. We handle as much for you as you want. We do all the little things you won’t have time to worry about, like coordinating maintenance repairs and painting. We’ll be the ones to schedule with carpet cleaners and pest control services. We will go in with our propertyspecialist to ensure your home meets all the requirements of the rental property code for Texas.
Welcome to part two of our short series on property management fees and what is typical in a management agreement. In our last video, we talked about management fees and termination fees. Today, we’re talking about other fees that some companies charge and others don’t. It’s really important to talk about costs specific to the management company you are interviewing. Maintenance Fees Part of the job of the property manager is to maintain your property, which means taking work order requests from your tenants and finding the right vendor to do the service on your property. Then, the property manager is invoiced from the vendor and they have to pay that bill. Some property management companies charge a maintenance uplift charge or a service fee. It can also be called a convenience fee. You’ll pay this on top of the amount that is invoiced from that vendor. So on a $50 sink repair; it may not be an exorbitant charge. But on a larger expense, like a roof replacement, it can be quite high. In our area, some people charge zero and others charge 10 percent of the cost on every vendor invoice. In some cases, there’s a flat $3 to $10 convenience fee added to each invoice. Ask and get clarification during the interview process. Think about what it means if that property manager is receiving a percentage of every vendor invoice. Do they really have the right motivation to find you the lowest priced vendor who is also well prepared and equipped to handle your maintenance request? Advertising Fees You’ll also want to ask any potential property manager if you’ll have to pay an additional fee for advertising your property. Sometimes property management companies will take out full page ads in the newspaper or buy expensive magazine layouts, and those charges are passed on to the owner. Ask about additional advertising and marketing fees. Leasing Fee There’s often a one time leasing fee, and sometimes it’s a flat fee or a percentage of the first month’s rent. This is collected for the service of securing a tenant for the property and completing and executing the lease documents on your behalf. Ask your property manager what it covers.
Today, we’re talking about the very important topic that we hear about from our owners all the time, and that is whether or not they should allow pets in their investment properties. Most people who have pets consider those animals part of their family, and they would never leave them behind. Allowing pets has pros and cons, and we’re going to discuss what those are. Allowing Pets: The Negatives We all know that pets can do a fair amount of damage if they’re not well trained or the owner isn’t that responsible. There can be damage to flooring, and we have seen puppies eat every windowsill in the house. The damage from pets can vary from mild to severe, and you need to be prepared for that risk. Think about whether you have a single family home or a multi-family home. If you have a multi-family home, there are other tenants to consider. Barking or pet feces that are not picked up in the yard can cause problems. Most pets also have dander and fur. While this may not be an issue for long term damage to your property, it can be an issue for a tenant who moves in later and is sensitive to these environmental issues, whether it is because of allergies or asthma or other medical conditions. The final thing you want to think about is danger to other tenants or neighbors. To address those dangers, some states and local cities have published lists of excluded breeds in rental housing. Make sure that you know what those requirements are in the area where your investment property is located. Allowing Pets: The Positives Most of the tenants we have dealt with are responsible pet owners. They consider these animals family members and they treat them as well as they treat other people. You do have the opportunity to collect a higher security deposit and an additional pet deposit or pet fee to protect yourself against any potential damage.
So you’re thinking about buying an investment property or you’ve recently purchased an investment property and you’re trying to decide if you want to manage it yourself or hire a professional company to do that for you. Today, we want to provide some guidelines to investors who are managing their own properties so you know what to expect after you decide to do it on your own. First, you’ll need to prepare the property for rent. Make sure it’s clean and everything is functioning mechanically. Spend enough time to research the local laws and make sure the property is compliant with the Texas Property Code that pertains to rental properties. Next, you’ll need to find a great tenant. To do that, you must advertise your property with pictures and descriptions and meet the tenants at your property to show it. You’ll need to screen your applicants and do a thorough background check. After you find the right tenant, make sure they understand and sign the lease. Collect rent and process fees for delinquencies. Hopefully, you won’t have to file for eviction because that can be time consuming and expensive. There is also the ongoing management. You must maintain the property to its best condition. Collect repair requests, take care of maintenance issues and handle any tenant concerns. You also need to choose the right vendors to go into the property and maintain it. The vendors need to be licensed, insured and bonded and you want to make sure the problem is repaired to the satisfaction of the tenant. There’s a lot of time and effort involved in managing your own property, and that’s why many Professional Property Management vs. DIY – Best Tips for Homeowners in Killeen, TXinvestors and property owners turn to a professional management company. A property manager will take a small percentage of your rent in exchange for the services provided. At Gold Medal, we like to say that we take 100 percent of the headaches associated with the rental process. If you have any questions, please contact us at Gold Medal Rentals, and we’d be happy to tell you more.
