Organizations and Credentials
Interviewing
Managing the Managers
HIRING AND MANAGING PROPERTY MANAGERS BRUCE KELLOGG
In smaller populations, there might be just one, two, or no fulltime property managers. Then the best approach is to ask local brokers who does property management in the area. Often it’ s an agent who sells properties and manages parttime. Don’ t be discouraged by this. Some of these are very good.
Organizations and Credentials
There are two national organizations that are concerned with property management. The first is the Institute of Real Estate Management( IREM). This is an affiliate of the National Association of Realtors ®, and it has national and international chapters. It emphasizes professionalism by presenting courses, holding conventions, and providing four credentials that require coursework, degrees of experience, and ethical practices. These credentials are:
Certified Property Manager( CPM) Accredited Residential Manager( ARM) Accredited Commercial Manager( ACoM) Accredited Management Organization( AMO)
These are the“ pro’ s”, but that doesn’ t mean the others are not. Less than 3 % of managers have these credentials. But, if you find one, consider it a bonus.
The second national organization with chapters is the National Association of Residential Property Managers( NARPM). This organization is oriented toward managers who manage many“ smaller” properties for their clients. A member of NARPM should definitely be interviewed.
Interviewing
Attached is an appendix of Leading Questions that need to be asked at the interview. They should be sent a couple days beforehand so the potential manager can prepare properly. This also projects a businesslike image of the investor to the manager. This list of questions is not exhaustive as these will lead into others as the interview progresses.
Managing the Managers
Property managers typically charge 810 % of collected rents. In other words, they don’ t get paid during vacancies. This motivates them to get vacancies filled promptly. Some managers charge a“ turnover” fee when they rerent a unit. This is fair because it’ s extra work for them.