Look who is entering the property management field. There is no substitute for credentials and experience when selecting a property manager.

2008-09-20T18:36:00.001-07:00

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So it is time to locate a qualified Property Manager. Be sure to look for a manager with property credentials and experience!

Many Property Managers today were attempting a career in real estate yesterday. Where does a Real Estate Agent, Broker, Mortgage Banker, Title Representative or other real estate professional go when economic times are the worst? Some change careers; others attempt to stay in a real estate related field where they can wait until the real estate market returns. Many turn to property management as a way to "hold on" during this market.

The problem is that property management involves years of training, and inexperienced participants are costing their clients plenty.

Selecting a Property Manager - Credentials & Experience

Credentials - The risks in being a landlord and hiring someone to act on behalf of the property owner are enormous. A property owner in need of quality property management services must consider the credentials of the Property Manager.

I believe that the highest real estate management credentials are earned through IREM (the Institute of Real Estate Management). An example of these credentials is the ARM (Accredited Residential Manager) designation.

Many quality Property Managers I have known have at least a Bachelors Degree in some business, law, or economics field, and some superior managers have a higher degree of MBA or even have a law degree (J.D., - Juris Doctor).

Experience - Look for an expert in property management -- perhaps an Expert Witness, a University Professor of Real Estate-related topics, and definitely someone with a long history of successfully managing a portfolio. It would be helpful if the Property Manager had construction/ maintenance history or was a California licensed contractor too. Nothing substitutes for years of experience managing the type of property you own.

Risk - The property owner inherently assumes tremendous risk merely by owning the property. The Property Manager hired to operate the property must be reliable, credentialed and experienced. Property Management companies should be able to provide proof of Errors & Omissions insurance, licensure, liability insurance, and credentials. The list of potential liabilities associated with management of real property would take up many pages! Suffice it to say that the liabilities are real and can be extremely costly.

Whether the property owner can't sell the property and wants to rent it out until the market returns, or is a seasoned investment owner, trying to save money by hiring a less credentialed or experienced Property Manager can be a huge mistake. If the cash flow of a property is tight, this is even more reason to select the proper manager. This job is just too important, and making an improper selection can be very costly.

Property Management & Real Estate Blog

Look who is entering the property management field. There is no substitute for credentials and experience when selecting a property manager.