Investing in or owning a rental property is a significant undertaking that requires a substantial financial outlay. The last thing you want is to operate at a loss, watching your hard-earned money disappear before your very eyes. This is a real possibility if you try and manage the property solo or opt for a less-than-reputable property management company.
A vital part of your criteria is ensuring that the company and its agents are certified. Therefore, shopping around for a reputable property management company with dedicated, professional agents is essential. It is advisable to interview at least two or three candidate companies to determine their certification and suitability to your needs. Here is why:
Property management certification types
A property management agent must obtain a real estate broker’s license or be a licensed realtor working for a broker. Evernest property services from Denver, Colorado Springs, Lincoln, and other US cities is a licensed property management company that hires certified agents to work for its clients, much like other local operations, such as Great Denver Rentals and HomeVault Property Management. Other residential real estate giants, such as Bozzuto and Morgan Properties, also operate in Denver. Evernest operates in Denver, where agents have their ear to the ground to track any new developments and trends in the residential rental market. Evernest also has offices in other major metropolitan centers like Birmingham, Chattanooga, and Columbus, Ohio.
As potential clients entrust their asset with a property manager, investors and landlords should feel free to inquire about an agent’s qualifications to determine if they have the knowledge necessary to do their job effectively. While this certification does not guarantee that a property manager will do a great job, it indicates that they know how to do one.
Association affiliation
Property management companies and their employees belong to organizations that offer certification programs and other personal development opportunities that enhance their industry knowledge and expertise. For residential property managers, membership of the National Association of Residential Property Managers (NARPM) is advisable as the organization supports professional and ethical home rental management practices. This association offers several qualifications, including the Residential Management Professional (RMP), Master Property Manager (MPM), and Certified Residential Management Company programs.
Another credible, related association is the National Property Management Association (NPMA). It focuses on continuous education and training of property management professionals and provides a forum to exchange knowledge. NPMA certifications include Certified Professional Property Specialist (CPPS), Certified Professional Property Administrator (CPPA), and Certified Professional Property Manager (CPPM).
Advanced knowledge
Working with a certified property manager ensures that you are kept abreast of the latest laws, regulations, and trends dominating the Denver rental home market. Legislative changes in the rental business are not unheard of. Landlords who do not adapt their contracts and business dealings with tenants for legal compliance could wind up on the wrong side of the law in a rental dispute.
As a part-time landlord, you might not become aware of such changes until it is too late. Certified professionals with the necessary affiliations become aware of new developments right from the start and act to protect their client’s legal interests in rental property ownership.
Getting paid
Unregistered and unqualified property managers can lose you substantial sums of money, either willfully or through negligence or ignorance. Many fly-by-night companies are quick to take on new clients but disappear when it is time to pay out your rental income.
Working with a reputable, established company with a proven track record in Denver has a greater chance of success. It would not have an excellent reputation unless its agents fulfill their obligations and offer top-quality service. Years in the business also indicate a company’s ability to deliver on its promises.
Tenant screening
Property management companies have greater access to data used to check a prospective tenant’s background. Most landlords make a phone call or two to verify an applicant’s employment and salary. Certified property managers go much further, accessing a would-be renter’s credit history to determine how much debt they have and how they have previously behaved toward debt.
Such advanced screening services ensure that the landlord gets tenants who pay their rent in full and on time and adhere to rental agreement conditions. It is invaluable to ensure that you do not end up with nightmare tenants as a property owner.
