If you are hiring a property manager or property management company, you are looking for convenience, trust and help. What you don’t want to find is fraud, theft and strife. So what should you ask a potential property manager about their money management practices? What kinds of things should you do before hiring them?
A recent story shows the importance of vetting your property management company. The FBI made an arrest of the owners of a Washington D.C. property management company. The owners are accused of defrauding an estimated million dollars from homeowners whose properties they were hired to manage. They are facing a number of felony fraud charges including mortgage fraud, identity theft, bank fraud, and tax fraud. They also allegedly stole money from clients’ accounts. Many of the allegations come from people who live overseas and hired them to manage their property in the D.C. area while out of town. Obviously their money management practices were not up to par.
So how can you avoid this? Some simple steps: Use the internet to your advantage. Google the company and its owners, check out the companies that pop up with the state and Better Business Bureau. Take it a step further and hire someone to do a thorough background check. It should include: the company, owners and employees; prior lawsuits and outcomes; civil records like bankruptcy information, and criminal records or all people involved.
Ask questions such as, Are they bonded and insured? What kinds of insurance do they carry? How long have their employees been working for them? This last question can speak to the kind of company they are; do they inspire loyalty in their employees? Ask questions until you are satisfied.
Money management practices of your property manager affect you and your investment. Your property is a huge asset. Keeping it in good shape is the job of a property manager or property management company. Knowing they are trustworthy is important to you keeping your investment and your peace of mind.
We are SO proud of our money management practices at Denver Realty and Rentals! If you would like to find out more, please give us a call today 303-452-5853