Tips for working with management companies

We shot 3 videos aimed at giving
Mainly for early entrepreneurs or for investors.

This is part of 2 from 3 and we continue on: Working with management companies.

During our business activities, we get to know quite a bit
Entrepreneurs who want to go independent in the field of
US real estate investment.
We saw how difficult they encountered and wanted to give 3 emphases,
That can help you build your business correctly.

Here are some important points we're talking about in this video:
1. Find long-term management companies - less scattered over a number
Management companies, but to find a management company one or two (depending
Size of your bag) and build a long lasting relationship with them.

2. Keep a hand on the pulse - just like with the contractors, check one for several
Time off their work. First choose the ones you have received
Recommendations. We recommend meeting with them personally, knowing and understanding
What do they know how to do? Ask to speak with their references,
Who can be tenants or homeowners.

3. Go over the contract with a management company - the average you pay a company
Management currently ranges from 8-12% of the NIS, depending on the region.
Part of their job is to find a tenant, collect money from the tenant, deal with malfunctions, issue a tenant, pay bills to the municipality, and sometimes offer to be the ones who will sell the house, if you wish.

4. Cultural differences - As with contractors, it is important to understand that this is not Israel.
Our logic is not always their logic. With time we learn what we are
Looking and what we need, learning to understand the system and adapt it to us and vice versa.
Example: A tenant did not receive a salary at the time of his work, and he informed that he would delay the payment a week and pay the fine according to the contract. Jonathan said he did not have to,
But the tenant paid anyway.
It also works upside down. So if you've committed to something and not kept it -
You will pay the fine.

5. Size of a management company - Usually a profitable management company stands at 250-350 assets. Below that, they are in the process of construction.

6. Service Calls - Most management companies try to make more money on calls
Property service because they do not have much room to earn. They will usually record service calls that you do not have an index for or say there is a malfunction and there was actually nothing.
Jonathan works with a management company that the company said in advance that every service call
They request 15% commission so that they can earn and cover their expenses,
Which sometimes involve it.

7. Tip related to repairs - ask for pictures before and after + a neat invoice.

8. A professional made a mistake - the management company will not always take responsibility. Pay attention to before and after photos and make sure they do everything at the professional level
most. I personally would also contact the tenant to hear from him
In two days after repair if everything works properly and there are no problems.

9. Lawsuits against the tenant - It is important to know the laws in the country regarding
Removal of the tenant from the property. Whether the law in favor of the owners of the property or in favor of the tenant.
A management company goes to court or sends an attorney on its behalf. These are things
That cost money. In cases where they do all the work for you, they can
Ask for a high amount on the service. Yonatan knows today that court treatment,
Should not take more than $ 300. Therefore it is worth asking: How much does a court cost,
What is the average in the field, what the process includes.

10. Quality of tenants - A management company can find a tenant very quickly
To your property, but not every tenant you wish to enter. It is important that you ask the company
Management what they are doing on the tenant and what their criteria are
To choose a good tenant. (Do not forget that most management companies make money on
Replacement of tenant and renewal of contract)

This is this time… Next video - Working with investors.
Especially for us as entrepreneurs.

Thank you for your time,
Albert and Jonathan choose real estate

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Link to the original post on the United States Real Estate Forum on Facebook