Property Management: How Important Is It?

I just wanted to take a minute to re-affirm the importance of having the right Property Management Company on your team. I read this article recently in the Sun Sentinel Newspaper in South Florida (November 28, 2014 issue) that really brings to light how important they are.

On July 17, 2012 a slaying took place on a property in which one tenant shot and killed another for no apparent reason. The family of the slain tenant sued the property management company for negligence, arguing they should have known the tenant was a risk and never should have rented his family an apartment. The management company recently settled the suit for $1.5 million dollars.

Florida Law does not require a landlord to run a background screening but does recommend doing so. The management company did run a background screening which revealed the tenant had rented an apartment in another of their complexes and was evicted for causing disturbances and making death threats. The failure by the property manager was in not actually reading the screening which they had paid for and had in their possession.

This was a large management company that this happened to, so don’t think just because they are big they must be good. The situation could have been avoided and a family kept in tact if they would have simply read what they paid to have done, a simple background screening.

Next to buying a property right the most important thing is the management company that is going to run your property and protect your asset. I have heard of several other horror stories just like this one, most of them occurred because as property owners we didn’t do a proper background screening of our property management company.

Don’t be a statistic, do your research and check not only the management company but also the property manager they will be placing on your property. Also, don’t always choose by the price they charge; sometimes the cheapest one might be the best one for the job but not always. Just like the most expensive isn’t always the best choice. Don’t be afraid to pay a little more to get the quality  and piece of mind you are looking for. I promise it will be cheaper in the long run.

Here is a helpful link for property management companies and managers      http://www.irem.org/

In the left column click on “Member & AMO Directories”

 

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