The 8 Most Common Mistakes Made When Choosing a Property Manager

Synergy Real Estate, Southwest Florida’s leading property management company, released the list of the 8 most common mistakes made when choosing a property manager. All of these mistakes can be avoided to create a stress free relationship with a property management company.

Naples, FL (PRWEB) May 20, 2006 -- Synergy Real Estate, Southwest Florida’s leading property management company, released the list of the 8 most common mistakes made when choosing a property manager.

1. Hiring a real estate sales agent to manage your property. Even though an agent may be perfectly qualified to sell you a home, they certainly don’t specialize in property management. Many agents are unaware of the specific legal policies that could cost you thousands when a problem arises.

2. Paying more than 60% of the 1st month's rent as a leasing commission. Most companies charge 100% of the first month’s rent as a leasing commission. However, some companies do charge only 5% of the gross lease, or 60% of the first month’s rent. Essentially, you are overpaying for the service if paying above 60%.

3. Paying more than a 10% management fee. Many management companies charge fees above 10% and also slide in hidden fees. Companies can get away with this scam because most people do not analyze all of their options before considering one specific company.

4. Signing a long-term, binding contract. Management companies have been known to lock their clients into a long term, 12 month contract. This raises the question – If you provide excellent service, strive to always keep your customer happy, and continually do a great job as well as the right thing – why would you need to lock someone in?

5. Using stock, dated leases. A lease needs to be specifically prepared for your property. A lease should be designed to protect you from frivolous lawsuits and help insure more favorable collection judgments.

6. Hiring managers who don't have the proper experience and education. A degree is not mandatory for property management, but is certainly another advantage on your side. Well educated managers can often increase your rental rates and offer advice on market conditions.

7. Hiring companies that only do leasing and not management. Companies who only do leasing have a primary motivation to lease to the first person who walks in the door. Without managing the property, they have no feedback as to how a certain type of tenant behaves over time. Their motivation is not to find you the best possible tenant.

8. Hiring companies that don't return your call in a timely manner. If a company doesn’t return your phone call, they are definitely not returning phone calls from renters. Consequently, you lose money.

For additional information on property management, contact Louis Pfaff or visit http://www.naplespropertymanagement.net

About Synergy Real Estate:

Synergy Real Estate is Southwest Florida’s leading property management company. Synergy's President, Louis Pfaff, has a Masters degree in Real Estate from the University of Florida in conjunction with years of real estate experience including commercial real estate lending, underwriting, acquisition, management, and appraisal. Synergy Real Estate presently manages over $50,000,000 in real estate throughout the Southwest Florida market.

Contact:
Louis Pfaff
Synergy Real Estate, LLC
239-487-4780
http://www.naplespropertymanagement.net

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