The Importance of good property management for overseas investors
After selling 4000 plus homes in the US we believe that the on the ground property management and support you receive is as important as the property you buy. At Global Investments incorporated we strive to partner with the best most efficient management companies in each city we sell properties in.
When we open in any new region, CEO Mike Moodie personally travels and meets a number of management companies to decide on which one would provide the best hands on service for our investors. Before we agree to pass our investors over to the management companies all the correct due diligence is carried out, including speaking with current clients of the specific management companies and finding out about their experiences.
A good property manager in the US would normally take 10% of the gross rent each month for their services. The services that they provide should be as follows.
1. Rent Collection – The most important job. Collection of rent is vital and needs to be done in a professional manor. Our management companies ensure that they have a good relationship with both the tenant and the landlord and will collect the rent on a given date every month and will then deposit or wire the funds to whichever account our investors choose.
2. Maintenance – As a landlord you would be responsible for maintenance issues on the property should they arise. The property management company should handle all of the tenants needs and requests 24/7 on your behalf. This should also include getting you the very best quote for any works that are needed.
3. Book keeping – Your property manager should provide a book keeping service ensuring that this is as hands off as possible for you and ensuring that you are following and recording any incidents with the property and also documenting any tenant requests and issues.
4. Tenant placement – Another major factor in property management. Our property managers will ensure that all tenants are correctly screened and all checks are done before making a placement, including credit, criminal and previous landlord checks.
5. Defaulting Tenants – When you hire a property manager they should not only be responsible for collecting the rent but also dealing with the legal procedures in the instance a tenant defaults. Sometimes this may mean negotiating directly with the tenants in person in the case that they are maybe only a month behind, or other times may mean filing legal processes in order to remove them from the property.
When choosing a property management company of course you should do your own research and home work. Once all of the above is in place and your property manager has been appointed then as an investor all should be pretty plain sailing and if for what ever reason issues do arise your property manager is there to handle them in the most effective and professional manor.
“ You can buy the best located property with the best tenants in place but if the property is managed badly this can tun into a bad investment which is one of the reasons we make sure that we only work with the very best on the ground management companies with decades of experience in their given fields. “ Mike Moodie – CEO Global Investments Incorporated.