The Florida building boom resulted in many first time investors becoming owners of rental property. Many homes were purchased through investment clubs or infomercials offering huge profits with little to no money down. While many investors realized unreal profits during this boom those that got in to late and didn't get out in time all of a sudden became landlords. In some cases the property management contract was included with the purchase documents and many owners had no clue they had signed a contract for management of their properties. We have been involved in the building and management of homes as a service provider since early in the boom.
I am baffled that property owners do not take the time to research the company or the owners of their management company prior to turning over their large out of state investment in real estate. As a service provider we have seen owners taken advantage of and screwed out of their money and while they may complain they don't seem to want to change how their property is managed. I assume that since they do not have to reach into their pocket that they accept the lowering of their income by being required to pay excessive and hidden charges as it is subtracted from the rental income.
The Internet is a great resource to find out information about companies and the owners of those companies. I would suggest that owners of investment properties seeking property management use this resource to get as much information as possible prior to signing a contract for management. I recommend not only searching the name of the company but the name of the owner. While not everything on the Internet is completely accurate you can find the experiences that others might have had with the companies you are considering. There are many consumer and rip off sites that will specifically provide a forum to communicate good and bad experiences with companies or people.
While past history is not always an indicator of current or future performance, it is a factor to determine if this is the right company to trust with your investment. I have written previously regarding excessive and hidden charges and asking questions to help you make the right decision in choosing a property manager and I hope some day this information will prevent someone making a huge mistake. I have worked for numerous property management companies in maintaining the properties you own and it was very difficult to balance our need for a source of income vs seeing owners treated with disrespect and being taken advantage of. Many of the companies we have worked for do a good job and provide value for the service they offer. I do not intend to represent that all management companies are bad but as in any profession there are those that you want to do business with and others you will want to stay far away from.
Take the time to do your homework and research your options. Make sure you understand all of the ways in which companies will make money from your property. There are no guarantees that you will find the perfect arrangement but your involvement in the beginning of the process and throughout will go along way to ensure your property provides a steady income and is protected in the long run.
We will soon be establishing a website to provide property owners with a resource to provide information and material to ensure your property is properly managed. We currently have some information available at http://www.onlinehomeresource.com/ and you can always email me at onlinehomeresource@gmail.com. Subscribe to this blog or feel free to leave comments regarding your experience.
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