If you are a property owner or investor. hiring a property management company makes good sense for many different reasons. We handle marketing, maintenance, emergencies, evictions, collections, financial reports, and more. Sometimes the more difficult question can be, which property management company to choose?
Just this week in Oregon, State authorities discovered a property management company has been committing mass fraud, leaving property owners and investors without tens and is some cases hundreds of thousands of dollars in rent payments. The FBI is currently investigating the matter. According to some of the initial reports, the property management company had fabricated bills, misused tenant security deposits, and double billed clients, in order to make up for recent business setbacks. One customer claims he never received a $70,000 monthly payment from the company for his 84 unit complex. Some of the Oregon news websites are claiming that this is the fourth property management company that has been investigated for financial irregularities in the state, just in the past four years.
Without question, these same types of fraud or mismanagement have also occurred in Arizona. Just last year, a former councilman in Coolidge AZ, admitted to stealing $50,000 in deposits from clients and tenants after a department audit. He was convicted of fraud and theft. Property management isn’t easy, there are specific legal and financial matters that require training and accounting knowledge. It is an unfortunate fact that there are people and companies out there offering property management services, that just don’t have the expertise needed to do the job right.
Here are a few things that you can do to avoid hiring a bad property management company.
- Ask Other Customers If They Have Noticed Any Warning Signs. Increasingly late payments, no reporting, and poor communication can be warning signs that something is not right.
- Ask How long have they been in business? If the company you are considering has been open for less than 3 to even 5 years, you may want to keep searching.
- Ask Other Reputable Real Estate Professionals For A Referral. Who are other investors or professionals in the area using?
- Check Their Licensing – Maybe this should be step 1, because if licensing isn’t current, don’t give them another second of your time.
- Take A Look At Their Systems & Paperwork. What are their procedures for marketing, maintenance, inspections, collections, ect…
Why owners trust Real Property Management Phoenix Metro with their properties?
Real Property Management has taken 20+ years of experience and re-engineered industry processes to consistently meet our customers’ expectations while saving them time and money. Phoenix property management is our business, and our experience and industry expertise ensure your property is compliant with the stringent standards set forth by the Arizona Department of Real Estate and the Better Business Bureau. Call 602-368-5730 Now to discuss your specific property management needs!