CHOOSING 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 – 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: WWW.ARBOURPM.COM