How to Find a Competent Property Management Company

by Jennifer Minge

There is no substitute for the experience you get while directing the daily affairs of your investment properties – but, managing real estate is not for everyone. Most investors realize that the best use of their time is finding new deals instead of repairing clogged toilets or trying to collect rents. So the search is on for a reputable property management company.

A property management firm must be capable of operating your property effectively and efficiently. The first place to look for a competent property manager is through the Institute of Real Estate Management (IREM). IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. For the past 75 years this organization has been the source for education, resource and membership of real estate management professionals. IREM members are the most respected professionals in commercial and residential real estate management.

The institute provides a complete training program that result in two credentials: 1) Certified Property Manager (CPM) and 2) Accredited Residential Manager (ARM). Building value in real estate depends upon effective, results-oriented management and an IREM credential is an assurance that your real estate will be managed to maximize the investors ROI. ARMs normally manage properties with 30 units or less while CPMs manage larger properties.

Professionals who hold the CPM certification have completed a curriculum of seven classes, passed a property management plan, passed the CPM exam and have at least three years of experience in managing properties of at least 300 units. To achieve the ARM certification one has to complete four classes, pass the ARM exam and have at least one year of experience managing at least 30 units.

Investors can find all ARMs and CPMs in their city by searching the website at www.irem.org. Once you have obtained a list of potential property managers, the best solution is to pick several to interview. When interviewing these candidates make sure you ask them how long they have been in the business, what type of properties they have managed, and the address of properties they are currently managing. The goal is to select candidates who have managed properties similar to yours and you can visit their properties to determine how well they are maintaining the site.

Other key questions to ask the candidates are the following:
• What is their tenant retention policy?
• How long it takes them to make ready a unit after a tenant moves out?
• What is their marketing plan, and how they will handle maintenance requests.
• Lastly ask for and check reference.

A careful interview and selection process will enable you to employ a property management company that will help maximize the value of your investment portfolio. A professional and competent management company will make every effort to discharge its duties and responsibilities in accordance with your stated objectives. Good management builds value, improves the physical asset and increases the return on financial i