Managing a rental home from across the country or overseas can be a daunting challenge for military home owners. At AHRN.com, we work to bring you the necessary tools and information – from tips for self managing to writing stand out listings. Today, we’ve asked one of our valued property managers, Ann Ezell, to share her insight on how to find a property management company for your rental.
Contracting with a professional property management company and agent (the property manager) to manage your home is an important decision you will make when you get military orders to relocate outside the United States or to a distant military base within the United States. Get this wrong and anxiety will become your constant companion. Your property can be subject to prolonged vacancies and improperly screened tenants who may not obey terms of their leases.
All tenant/landlord disputes begin in — insert your home’s county Magistrate Court. Legal actions against tenants can be evictions, and judge-awarded dollar amount judgments which you or your attorney must record at the county courthouse. Even if you win (obtain a judgment) you really lose, since the tenant can ignore the judgment by not paying you the decreed dollar amount. Your attorney can file “Garnishment of Wages” but if the tenant changes jobs, you are out of luck! Extreme and costly damage to property is more common than you may think.
If you are wise in your choice of company and agent, aka the property manager, you can relax with the knowledge that your agent and management company are doing everything possible to protect and promote your best interests as the home owner. Yes, you can save procurement and management fees if a relative or close friend agrees to find a tenant and/or to manage your home for you. Would you hire an attorney to represent you if that attorney had failed the state bar exam or been disbarred? Of course not! My advice to you is simple: “Don’t do it!” Property management done right is hard work; good companies and agents earn their commission.
EVALUATE AND COMPARE PROPERTY MANAGEMENT COMPANIES
There are specific guidelines you can use to evaluate and compare property management companies in your area.
l. Is the brokerage firm a member of the National Association of Realtors (NAR) and the state and local associations? For example, Georgia Association of Realtors. Each state has a real estate commission composed of lawyers who create state approved “Property Management Agreement” forms and “Lease Agreements for Residential Property” forms. These lawyers and the state’s Real Estate Commissioner are masters of tenant/landlord law in the state and incorporate federal fair housing laws as well. A licensed brokerage firm can advertise your home for sale or for rent if you desire both options. Many areas of the country are seeing dramatic improvements in the housing market which means renting your home can become a choice rather than a necessity. A properly executed contract on a state approved form protects you as the home owner, the brokerage firm, the agents of the broker and the tenants. Companies that aren’t members of NAR and the state (ie: GAR) must purchase forms from an office supply store or employ a real estate attorney to design forms for the company.
2. Ask property management companies to provide you with a written list of rental management services offered to home owners, company prices and fees and responsibilities of each party to the contract. There are differences among companies in each of these areas. Identify the companies that offer the best services and prices relative to your needs.
HOW CAN I CHOOSE THE BEST AGENT/PROPERTY MANAGER EMPLOYED BY THE COMPANY I LIKE THE BEST?
Does the brokerage firm delegate property management services to one or more salaried nine-to-five agents, or is property management a commissioned based service chosen by the agent just like residential sales or commercial sales? The business practice of salaried only agents/property managers is a huge disadvantage to you as the home owner because these agents are not always motivated to show properties or execute leases on weekends… when a majority of tenant applicants want to view homes for lease. This can result in prolonged vacancies. Ask the agent how he or she feels about working on weekends when needed. If the salaried agent doesn’t offer occasional weekend service, contact your 2nd or 3rd choice company that employs commissioned only agents. Yes, it is that important!
Interview 1 or 2 commission-only agents and ask the following questions:
- Do you perform credit and/or background checks on applicants?
- Do you contact previous landlords and employer references?
- How will you advertise my property for lease?
- Do you have any specialized training that makes you better qualified to serve military home owners, buyers and tenants?
Credit and background checks speak for themselves; landlord and employer references round out the tenant profile. Ask the agent to contact you if a marginally qualified applicant wants to rent your home. The agent should, as a minimum, advertise rental homes on AHRN.com but other advertising tools such as the Multiple Listing Service, company and agent websites, and public websites like Craigslist.org are also very effective. Print media like magazines and flyers are also helpful.
A licensed realtor can earn the following two advanced designations: Certified Relocation Professional or Certified Military Relocation Professional (New in 2014).
However you choose to handle the rental of your property while you are out of the area, research and preparation are key. Both the home owner and tenant are best protected when all expectations and standards are clearly expressed in writing. This applies to the homeowner and property manager relationship as well. Clear communication and expressed expectations from the beginning prevent head aches down the road!
Meet Your Contributor
Ann Ezell has been a residential realtor with RE/MAX True Advantage in Augusta, GA for 19 years. She is a Certified Military Relocation Professional who serves buyers, sellers and landlords in the Fort Gordon area. Visit Ann’s website at www.aezell.com to access general real estate information and view homes in all price ranges that are for sale and for lease.
This is a great article on why military homeowners need a property management company. My husband has orders to report to Fort Hood in July. I will save myself the headaches of self management and call a management company today!
Debbie Starnes
Thank you Debbie! I’m glad you found it useful. 🙂 I’m here at Fort Hood so welcome to the neighborhood! We did an installation feature on Ft Hood a couple months ago.
Finding a good Property manager is no easy task. You should visit the property before making any decision. You should choose a good property manager who has a great knowledge and experience.
“
I learned so much from this Article. I’m currently in Lacey, Wa and relocating to D.C. I’m having a hard time finding a home property management company.
Cecilia – I’m so glad you found the article helpful! I just sent you an email with name of a property manager one of our team members has worked with and highly recommends who serves the Lacey area!
This is a great article on why military homeowners need a property management company. I am on orders to report to Japan in March 15. I am looking for a great property manager for my home in Copperas Cove, TX. I am a new homeowner with only 4 years of owning my home. Any recommendations on property managers around Fort Hood? Thanks
Lance – I’ve sent a request to our support team for a list of recommended property managers!
I agree this is a great article on why military homeowners need a property management company. I currently live in Virginia and have a house in Columbia, SC. I am looking for a great property manager for my home in Columbia, SC. Any recommendations on property managers? Thanks
Eric – let me do some checking and see if I can get you a recommendation!
Have a home in Eagle River, AK that I am looking for a property manager for APR 15 when I PCS. Any advice would be awesome!
I’m in the process of renting my house and needs a reliable property manager because most of the time we are out of the island. My property is located here in Ewa Beach Hawaii. Can you recommend one for me please?
Marietta – I will forward your request and see if we have an available recommendation. You might want to explore our Business Directory to start!
Thnx for your reply. I’ll check out your directory. I hope I can find one based in Hawaii.
I found this article very insightful. My husband and I are trying to decide whether or not we want to manage our property from overseas and this article provided some much needed insight. I have reviewed the business directory for recommended property management companies in the Albuquerque area and none were listed. Can you recommend one?
Tammy – I don’t have a personal recommendation for you in Albuquerque,but I’d suggest posting on our facebook page and tapping into the collective knowledge of our thousands of members there!!
The real estate market in Florida has stayed fairly steady. But, I think it’s picking up now! There are a lot of houses for sale right now and they’re getting snatched up quick!
That’s great to know! Thank you for stopping by.
Discovering a decent Property chief is no simple errand. You ought to visit the property before settling on any choice. You ought to pick a decent property director who has an incredible learning and experience.
These are extraordinary inquiries Hank, much appreciated. I was simply inquiring as to whether acquiring an investment property may be a decent move for us, so these may prove to be useful!
We have been landowners for a long time and we have never utilized a property administrator for our two properties. I’m so happy, as well. We have a couple long haul inhabitants who have had zero issues so paying a property administrator would have been a gigantic waste! One couple has been in one of our properties for a long time with no issues. Everything we do is gather checks and do the periodic repai
It’s awesome that you’ve had inhabitants for so long! That makes life so much simpler. It helps that the rental market in the UK is completely crazy at this time, so they are likely eager to stay leasing from you much more.
That’s great to know! Thank you for stopping…..
Regarding your legal concerns and questions, always ask the best of legal firms.
I am an AGR soldier who has moved around the at least five times since 2000. I had bought my home in GA in 1998. I left GA in 2000 and have went through 4 property managers. The last one was the worst and I had to get a lawyer to get out of contract with them. I have a new property management which is better, but it takes them until the middle of the month to get me the rent payment. I'm considering getting a new property manager. Does anyone have any suggestions?
It is wiser to have professionals on your side especially those who have been through several experiences of real estate transactions.
Professionals can be powerful allies!
I really like your list of questions to ask the property manager. I think, the answers can give you a pretty good idea on how the manager does his/ her job and the details of it. My parents are looking to hire a property management company. I will share this article with them; I'm sure it will be helpful.
I’m so glad you find it useful, Daniela!
Hello Dear !
Great Article with very useful information !
A good property management company is really helpful when you are looking for the property outside where you don’t have the proper idea.
Thanks for share !
Thank you, Vern!
I have been wanting to make more investments to help me get some long term benefits. It is really helpful to get more information on how to invest well. I think that I first need to establish what kind of property I want to invest in, since there are so many options. I think that it would probably be best for me to invest in residential property. Now I think I should be able to look around and find something that will work for me. Thank you for the great post!
Incredible Article with exceptionally helpful data !
A decent property administration organization is truly useful when you are searching for the property outside where you don’t have the correct thought.
Thank you, Larry!
Thank you for your insight into finding a reliable property management group to handle your rental property needs. I agree that for military property owners, this task may be more difficult. I would love to suggest that you meet with any possible property management companies you are interested in, in person if possible. I also recommend, as you mentioned, that checking things such as services provided, price points, tenant screening processes and background checks, and advertising methods will help you make the best decision possible. Thanks again for sharing this useful insight. Good luck to those looking to enlist someone to manage their rental properties while overseas.
Thank you, Patrick!
This is some great advice; after all, not many people know what kind of questions they need to ask when choosing a property management company. I especially like the question about any specialized training or other assets that they have over other candidates. For example, if they already have a dedicated maintenance crew on call, then that is less money you’ll have to spend.
It’s good to know how to find a property management company. We are thinking fo renting out our second home, so this is helpful. I’ll be sure to find a company that will perform background checks on applicants. We only want the best staying there!
It would be really nice to be able to rent out my property however, I don’t know how to do it all myself. Your advice on getting a property management company to help with tenant/landlord disputes. It will be really helpful to research all the companies I can to find the best service possible.