Landlord Advice For Choosing a Property Manager

ADVICE Selecting A PROPERTY MANAGER

By Lambert Munz MPM © RMP ©

PUBLIC IS UNAWARE

I will share with you some facts regarding Property Managers

that the public is not aware. Firstly, Property Managers must be

licensed by the Dept. of Real Estate. (California) While

practicing as Property Managers, I think I have been asked twice

if I have a license.

LICENSES ARE THE SAME

The license is the same license that a sales agent is required

to have; it is the same license that a Broker must have, it is

the same license that a Mortgage Broker must have. So what does

this tell you?

LEGAL, BUT MAY NOT BE TRAINED

It says that they are legal to practice in the four categories

mentioned. However, the license exam is weighted toward

residential sales because that is the group holding the majority

of licenses.

SEPARATE LICENSE

I strongly feel that each real estate related practice should be

licensed separately. This way, we would receive some education

regarding each type of business. The Dept. of Real Estate

(California) even states in its real estate reference book that,

“A LICENSEE SHOULD NOT OFFER SERVICES TO THE PUBLIC UNLESS THEY

HAVE RECEIVED TRAINING IN THAT CATEGORY”

A current license is not an indication of expertise in any of

the fields.

EVIDENCE OF EXPERTISE

So what should be the second qualifier of a Property Manager?

Evidence of training, experience, and expertise as a Property

Manager. Checking a Property Manager’s references from current

clients or other professionals is another way of investigation.

TRADE ASSOCIATION

Also, inquire as to whether they are members of a trade

association specific to their industry. A very important fact to

check if is they have earned a designation. For example, NARPM

(National Association of Residential Property Managers) offer

two individual designations: RMP (Residential Management

Professional) and MPM (Master Property Manager) There are

designation offered by IREM (Institute of Real Estate

Management) for Commercial Property Managers and designation

offered by RHA (Rental Housing Associations)

DESIGNATIONS INDICATE ADVANCED TRAINING IN THE INDUSTRY

Generally, the public doesn’t know what these designations mean,

which is the purpose of this article. These are indicators that

the person earning a designation has disciplined him/herself to

commit to advance training in their industry. It costs a lost of

money. Besides the cost of the course, most courses are held in

another town (time away, travel, hotel, meals). It means

contributing to the industry by serving as an officer of a local

chapter or a committee – local or national. There are other

contributions required such as attending leadership conferences,

state and national conventions. They all cost time and money.

TURNING YOUR KEYS OVER TO THE UNTRAINED IS A BIG RISK Shouldn’t qualifed people be the ones managing your investments?

SHOPPING BY PRICE ALONE IS A BIG MISTAKE?

Some new owners to investment real estate shop for a property

manager solely by price. This is a mistake. Why? Because anyone

offering this type of service by being the lowest priced –

probably has to - because they have nothing else to offer.

I hope this has been of help in your understanding of the

property manager profession. If you are interested in property

management services, please visit my site at: go to arbourpm.com