When you have decided to rent out your home or rental property the services of a Portland Property Management Company come in handy. These companies are often the most efficient solution to get your property rented. Many professional real estate investors rely exclusively on the experience of Portland property management firms to create passive monthly income. There are different types of firms and services and you will definitely need to know what your exact needs are.
#1 Tenant Finder Or Full Service
Decide if you want to have screened tenants provided for you or if you want a complete hands free solution with a full service firm. The full service Portland property management firms will advertise your place, find and screen tenants, maintain the property and collect rent on your behalf. These firms tend to charge a one time fee and a percentage of the collected rent each month. On average the fees range from 5% to 10% of the rental value. Services that only focus on finding tenants charge a one-time fee that tends to be equal to one month of rent.
#2 Know The Rental Comparables For Your Neighborhood
It is absolutely crucial to have accurate knowledge with respect to the going fair market rental value in the area where your property is located. While it is only natural to want the rental income to satisfy the mortgage do realize that this is not always possible. Decide what the maximum rent is that you can request for your property that will still help you satisfy the mortgage, one thousand dollars towards a mortgage will always be a huge help.
#3 Get References
There are many Portland property management firms, make sure to research these thoroughly. Look at the websites and check how long these companies have been in business. Read their TOS (terms of service) carefully to understand the full scope of what they offer. Do some research with the Better Business Bureau and make sure to ask others for references. Make sure that you feel comfortable and confident with the service that you will be provided.
#4 Review Your Portland Property Management Agreement Fees
Ask to see a copy of the management agreement/contract in advance and feel free to have your lawyer review this agreement. Fully understand all of the penalties and fees in the event that you have to break your contract. Make sure to ask about each fee and what the fee includes. Does the Portland property management company provide free advertising, discounted advertising or are you paying for the advertising on your own? Check to see how much time you are locked in with the firm, you may find later on that you want to change companies, or that you want to manage your own property. Some property management firms charge five to ten percent of the monthly rental income. Some property managers charge you for each visit to the property. Make sure that you are clear on all of the fees.
Call around and take careful notes, by calling several you will have a clear idea of the going rates. Is the property manager also paid on empty property? You want to avoid managers that may be desperate to rent your property only to collect their percentage. You do not want a tenant that destroys your property as you are the only one responsible to pay for the damages to your property. Request to approve your tenants beforehand. Know that the five percent rates could charge higher back end fees. A firm may charge five percent if they only collect rent, but if they handle repairs or check references, they may charge an hourly rate which would quickly surpass the percentage rate. Shop around and compare.
#5 Review Their Collections Process
Make sure to ask if they have an on staff lawyer or if they have a contract with a law firm that specializes in real estate. Should your tenant refuse to pay rent you want to know that your Portland property management team has the experience to represent you in court and to collect the rent that you are owed. How does this company handle evictions and how much experience does this company have with tenant evictions?
Consult with a professional Portland property management expert to discuss your expectations and plans. The current economy proves to be a fabulous time to invest in real estate with the foreclosure market offering tremendous savings. To learn more about making real estate investing your source of passive income call (503)539-9094 or visit http://howtoinvestinrealestateportland.com.