Comprehensive asset management information

Comprehensive asset management information

Comprehensive asset management information

 

Asset management companies;
We all have some good years of solid experience… What tips of retrospective wisdom can you share ???
Horror stories will also be welcome

Link to the original post in the United States Real Estate Forum on Facebook - working on a desktop computer

The responses to the post can be read at the bottom of the page and join the discussion

  • Work only in an area where there are at least 2 property management companies that suit me. That way I do not develop dependency, and it is felt on the other side anyway…
  • We made a video about it and it seems to me that I have already uploaded a forum here. If not, I'll take care of it soon
  • Property Management:
    1. The parameter that can "kill" the issue of yield profit is the replacement of tenants.
    In this case the cost can be in the thousands and rarely in the ten thousand dollars.
    Replacement fee is a payment determined by the management companies for the introduction of a new tenant. This fee ranges from half to one full month.
    2. Replacement of the management company in the first year - If we started hiring the services of a management company for the first time, make sure that we can leave the management district with about 60 days notice. Most management companies do not allow this and write in the agreement that this agreement can be canceled 60 days before the end of the engagement period. If I want to cancel before, we will pay an exit penalty.
    3. Exclusivity in the sale of the property - It should be noted that in the contract the management company does not have the exclusivity in the sale of the property and does not receive a commission in any case where the property is sold.
    4. Repairs - Most management companies will use their service personnel to repair the property's faults. Please note the following:
    A. Check that in the contract they are obliged to bring at least one more quote.
    B. There is a possibility that you will bring in your professional.
    5. Availability - A very important issue for two reasons:
    A. Available to tenant when there is a fault. The management company is your face as the property owner.
    If the service is poor, the tenant will equally treat the property.
    B. Availability for you - When there are malfunctions that require your approval, it is important for the management company exams.
    6. Amount of repairs - In almost every property management agreement, the management company will record that there is a certain amount intended for repairs that does not expel the owner's consent to the repair. Make sure the amount is reasonable and does not exceed the usual ($ 300-500).
    7. Payment of property tax - Make sure that the management company does pay the said tax. I have often come across a management company that forgot to pay and the tax debt increased. As is well known, if the debt is not paid for a long period, the property may be in danger of sale by the authorities.
    8. Photos - When there is a repair that needs to be done, ask for photos before and after the repair. If the management company knows that you are monitoring your expenses, the wear and tear will probably be low.
    9. Ask for the tenant's phone - once a quarter talk to the tenant. The action serves 2 things:
    A. Monitoring the management company.
    B. Lower wear and tear as the tenant sees that you care.
  • Super WOW teaches thanks to Uri
  • In the end, we are dealing with people and connections that have been woven for years. Much has been said about how important it is to create the people in the field who work for you. A thousand times the management company
  • Are there investors here with a few assets that divide management companies?
  • Management companies, 1. Make sure the management company is not one or two people because then the service you receive will be in accordance, if he is at liberty, no one to talk to, if he does not have a complete mechanism and system for finding and filtering tenants, it will take him more time to get a tenant.
    On the other hand, in an oversized management company, the tenant can fall between the chairs and the costs can be higher. It is desirable that the management company should have proven experience to make even greater renovations than repairs, so that when you buy a property that needs extensive renovation, you can use their services and they can manage the contractor and not have to manage remotely.

    3. Make sure you have a contract with them that as long as there is no tenant in the property you are not obligated to them, so that in case they do not function in terms of finding tenants, you can replace them and you will not be limited.

    4. Make sure they have a portal where the property owner can enter and see at any given time the status of the rental, tenant and history of all expenses and income

    5. When you have multiple assets, start working with another management company in parallel to always be on hand

    6. Everything that Light said.

  • LiorLiorchik
    Nafdia Real Estate - Tips for managing a management company
  • A very important issue for Ido. The management company is the one who will determine for us whether the property will have a rental property or a rental property, but only for the professionals who will be there all the time, and for us only a headache. Certainly, as Uri said close relationships with the management company, monitoring them, at the level of every pips in the report are important. I work in the same area with several management companies and have not found a perfect company. Each one has its advantages and disadvantages and must sit down and demand. There are many gaps in their perception of management and what we investors expect.
    It is very important to make sure that the management company not only notifies you when there is a major asset failure, repair.
    It is important that the management company, beyond the monthly report, give you information about the property and the tenant. Immediately after the rental was received we were updated. Immediately after making an urgent correction with no reports to be reported.
    It is very important to understand that they represent us to the tenants.
    Sometimes they only work according to the book and I have situations where they connected me with the tenants and with a little bit of thought flexibility I had to reach a settlement with the tenant, for example, a payment arrangement on debt that would swell, etc. So recommend looking for a management company that is big enough and has a system, on the other hand that it is hungry enough and wants to give good service, which has good reviews online. Try to find a management company that your local liaison recommends. For example, the broker. Or the insurance agent or anyone else. It's always good to get in touch. I reinforce all the things Uri Bar said. How true they are. Successfully
  • Choosing a management company
    Investing in real estate is like running a business and the management company is our employee. When I teach an investor at the beginning of his journey I let him raise points for himself to think about what is important to him in the company he chooses and less that I will dictate to him, because otherwise he would not know how to make the right choice… Therefore: 1. We need to define what we expect from the management company
    2. Make an acquaintance call and interview with several companies. .
    3. Choose a management company and make sure we have a departure point with their service.
    4. Work with them for a while, if they are not good enough, replace them.

    I usually own two management companies in each area. Towards the end of the purchase process I present to the investor the advantages and disadvantages of each of the companies, what suits one investor does not suit another.

  • Many smart and correct things have been said here. I also hold the attitude that the management company should be big enough but not too big. That way we can enjoy the experience and value of an experienced company, but still be an important customer and no longer be an Axel number. When we move into a new area, we always work with more than one management company. At the end of a year (if there was no crisis in the middle) we choose whether or not to transfer all assets to one company. In one case, we found that one company is better able to cope with older properties in more problematic neighborhoods, and the other is able to find stronger tenants for more durable neighborhoods. And so we chose to let one company manage assets in some areas and the other company to manage assets in other areas.
  • A management company works to earn a lot and usually according to the book and a pre-prepared contract that almost can not make changes and certainly like replacing it in the middle of the period, but only 60 the day before the end of the contract and it is quite clear why.
    It often happens that they use the clause in a contract that allows them to fix up to a certain amount without obtaining the landlord's approval and splitting the problem.
    It is very important not to rely on the management company and track tax payments frequently
    .
    It is highly recommended to cancel a clause that gives the property management company an exclusive sale of the property and a commission in any case, even if there were no partners in the sale.
  • I have just prepared a series of tips on how to deal with the management companies

 

 

  • Great tips thanks friends ??
  • Exactly on this subject, I do a Webinar at 15 / 1.
  • I manage my assets myself. I have built an operation that supports every management issue. Including every management issue is the central and most important thing of any overseas investment and many investors tend to forget it. ? How do I make sure tenant screening is done professionally? And a lot of mismatch between the management company's aspirations (making money) and my aspirations as an investor.

    I would be happy to expand if there are additional questions.

Related News Real Estate Entrepreneurs

Responses

  1. I manage my own assets. I built an operation that supports all management.

    In general, the whole issue of management is the most important and important thing in any overseas investment, and many investors tend to forget it.

    Through my operation, I solve many of the main problems, such as when a good tenant comes to what the management company will actually bring to my property? How can I make sure that tenant filtering is done professionally? And a lot of mismatch between the management company's ambitions (to make money) and my ambitions as an investor.

    I would be happy to expand if there are additional questions.

  2. A management company works to earn a lot and usually according to the book and a pre-prepared contract that almost can not make changes and certainly like replacing it in the middle of the period, but only 60 the day before the end of the contract and it is quite clear why.
    It often happens that they use the clause in a contract that allows them to fix up to a certain amount without obtaining the landlord's approval and splitting the problem.
    It is very important not to rely on the management company and track tax payments frequently
    .
    It is highly recommended to cancel a clause that gives the management company exclusivity for the sale of the property and a commission in any case even if there were no partners in the sale.

  3. Many wise and correct things have been said here. I also hold the view that it is desirable for the management company to be large enough but not too large. This way we can enjoy the experience and value of an experienced company, but still be an important customer and not be another number in Excel. When we enter a new area we always work with more than one management company. At the end of a year (if there was no crisis in the middle) we choose whether to transfer all the assets to one company or not. In one case we discovered that one company is better able to deal with older properties in more problematic neighborhoods, and the other company is able to find stronger tenants for more resilient neighborhoods. And so we chose to let one company manage assets in certain areas and the other company manage assets in other areas.

  4. Choosing a management company
    Investing in real estate is like running a business and the management company is our employee. When I teach an investor at the beginning of his career I let him raise points for himself about what is important to him in the company he chooses and less that I will dictate to him, because otherwise he would not know how to make the right choice…

    and hence:

    1. You have to define what we expect from the management company
    2. Make an acquaintance call and interview with several companies. .
    3. Choose a management company and make sure we have a departure point with their service.
    4. Work with them for a while, if they are not good enough, replace them.

    I usually own two management companies in each area. Towards the end of the purchase process I present to the investor the advantages and disadvantages of each of the companies, what suits one investor does not suit another.

  5. A very important issue for Ido. The management company is the one who will determine for us whether the property will have a rental property or a rental property, but only for the professionals who will be there all the time, and for us only a headache. Certainly, as Uri said close relationships with the management company, monitoring them, at the level of every pips in the report are important. I work in the same area with several management companies and have not found a perfect company. Each one has its advantages and disadvantages and must sit down and demand. There are many gaps in their perception of management and what we investors expect.
    It is very important to make sure that the management company not only notifies you when there is a major asset failure, repair.
    It is important that the management company, beyond the monthly report, gives you information about the property and the tenant. Immediately after the rent is received we will update. Immediately after they did an urgent repair without any certificates to be reported.
    It is very important to understand that they represent us to the tenants.
    Sometimes they only work according to the book and I have situations where they connected me with the tenants and with a little bit of thought flexibility I had to reach a settlement with the tenant, for example, a payment arrangement on debt that would swell, etc. So recommend looking for a management company that is big enough and has a system, on the other hand that it is hungry enough and wants to give good service, which has good reviews online. Try to find a management company that your local liaison recommends. For example, the broker. Or the insurance agent or anyone else. It's always good to get in touch. I reinforce all the things Uri Bar said. How true they are. Successfully

  6. Management companies,

    1. Make sure the management company is not one or two people because then the service you receive will be in accordance, if he is at liberty, no one to talk to, if he does not have a complete mechanism and system for finding and filtering tenants, it will take him more time to get a tenant.
    On the other hand, in an overly large management company, the tenant can fall between the chairs and the costs can be higher.

    2. It is desirable that the management company should have proven experience to make even greater renovations than repairs, so that when you buy a property that needs extensive renovation, you can use their services and they can manage the contractor and not have to manage remotely.

    3. Make sure you have a contract with them that as long as there is no tenant in the property you are not obligated to them, so that in case they do not function in terms of finding tenants, you can replace them and you will not be limited.

    4. Make sure they have a portal where the property owner can enter and see at any given time the status of the rental, tenant and history of all expenses and income

    5. When you have multiple assets, start working with another management company in parallel to always be on hand

    6. Everything that Light said.

  7. Property Management:
    1. The parameter that can "kill" the issue of yield profit is the replacement of tenants.
    In this case the cost can be in the thousands and rarely in the ten thousand dollars.
    Replacement fee is a payment determined by the management companies for the introduction of a new tenant. This fee ranges from half to one full month.
    2. Replacement of the management company in the first year - If we started hiring the services of a management company for the first time, make sure that we can leave the management district with about 60 days notice. Most management companies do not allow this and write in the agreement that this agreement can be canceled 60 days before the end of the engagement period. If I want to cancel before, we will pay an exit penalty.
    3. Exclusivity in the sale of the property - It should be noted that in the contract the management company does not have the exclusivity in the sale of the property and does not receive a commission in any case where the property is sold.
    4. Repairs - Most management companies will use their service personnel to repair the property's faults. Please note the following:
    A. Check that in the contract they are obliged to bring at least one more quote.
    B. that there is a possibility that you bring your professional.
    5. Availability - A very important issue for two reasons:
    A. Available to tenant when there is a fault. The management company is your face as the property owner.
    If the service is poor, the tenant will equally treat the property.
    B. Availability for you - When there are malfunctions that require your approval, it is important for the management company exams.
    6. Amount of repairs - In almost every property management agreement, the management company will record that there is a certain amount intended for repairs that does not expel the owner's consent to the repair. Make sure the amount is reasonable and does not exceed the usual ($ 300-500).
    7. Payment of property tax - Make sure that the management company does pay the said tax. I have often come across a management company that forgot to pay and the tax debt increased. As is well known, if the debt is not paid for a long period, the property may be in danger of sale by the authorities.
    8. Photos - When there is a repair that needs to be done, ask for photos before and after the repair. If the management company knows that you are monitoring your expenses, the wear and tear will probably be low.
    9. Ask for the tenant's phone - once a quarter talk to the tenant. The action serves 2 things:
    A. Monitoring the management company.
    B. Lower wear and tear as the tenant sees that you care.