Rental Application Process Insights and Identity Fraud

October 23, 2024

by: judy & ernesto andujar

Understanding Property Management

Navigating the complexities of property management can be overwhelming, but with insights from industry experts like Ernesto, owner of Navigate Property Management Company in North Texas, the process becomes much clearer. With over a decade of experience managing properties, handling more than $500 million in real estate transactions, and executing 2,500 leases, Ernesto aims to provide valuable answers to common questions landlords often have.

Why Hire a Property Management Company?
Hiring a property management company isn't always necessary, particularly for landlords managing just 1-2 properties. However, the decision often comes down to personal preferences and goals:

For Convenience: Avoid late-night calls and handle legal concerns like mold claims effortlessly.
For Scaling: Ideal for landlords expanding their portfolio or managing properties remotely.
For Personal Choice: While some landlords prefer to manage their properties to maximize cash flow, others value the convenience property management companies offer.
How Do Property Management Fees Work?
Property management fees vary widely, and understanding them is essential:

Traditional fees ranged from 10%-12% of rent; now, flat rates between $85 and $150 per month per door are common.
Look beyond basic management fees. Consider leasing, renewal, and repair management fees to make informed comparisons.
Are Property Management Companies Worth It?
The value of a property management company lies in finding a reliable manager:

Expertise in housing laws, tenant screening, and property marketing ensures smooth operations.
A skilled manager can significantly boost a property's profitability.
Read reviews and understand client feedback to assess the company's effectiveness.
Do Property Managers Provide Added Protection?
Property managers can offer added security for landlords, including:

Liability Management: Ensuring compliance with fair housing laws and property codes.
Financial Safeguards: Many companies offer guarantees, such as leasing guarantees, to mitigate risks.
E&O Insurance: Covers property managers against potential errors or oversights.
Licensing and Compliance
In Texas, third-party property management requires a licensed realtor with E&O insurance.
Private landlords employing on-site managers are exempt from licensing requirements.
How Do Property Management Companies Handle Repairs?
Property management companies don’t typically pay for repairs but instead coordinate and oversee the process on behalf of landlords. This ensures issues are resolved efficiently and to a high standard.

Questions to Ask Before Hiring a Property Manager
Before signing any agreement, consider asking:

How are repairs handled and troubleshot?
Are there any hidden fees beyond management, leasing, or renewal fees?
What is the tenant screening process like?
Is there a dedicated property manager or in-house maintenance team?
How to Terminate a Property Management Agreement
Most agreements include termination clauses, which may involve fees. Navigate Property Management offers a landlord-friendly 30-day notice termination policy without additional charges. Always review and understand the terms before signing.

Final Thoughts
Property management is about making informed decisions that align with your goals as a landlord. Ernesto and Navigate Property Management are committed to providing the tools and insights you need to succeed.

Stay informed by subscribing to newsletters and following Navigate Property Management’s channels for more valuable tips.

Ready to take the next step in property management? Contact Navigate Property Management today!