Things You Can’t Turn Over To Your Property Manager by Robert Locke
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Things You Can’t Turn Over To Your Property Manager
by Robert Locke
Some property owners get confused about what their property manager does when they hire them. It’s probably easier to define what we can’t, or shouldn’t do. After managing rentals for 30 years we have developed a short list of things that you should never ask your property manager to do for you.
- Make your mortgage payments
No one should make your mortgage payment for you. The consequences of not making them on a timely basis could be catastrophic. Your mortgage could go into default, your credit can be affected and you risk loosing the property in a foreclosure if the payment is not kept current. Never trust another to make your mortgage payments for you especially your busy property manager.
- Pay your property taxes
You don’t want your property manager responsible for paying your property taxes. Owners should have the county mail tax bills directly to them for payment. Failure to pay them can have serious consequences and should not be passed to a property manager. If you get a tax bill and want it to show up on your monthly owners report for tax purposes mail it to them along with a check but don’t expect property managers to receive the tax bill and pay it.
- Maintain your landlord insurance and umbrella policy
If premiums are not paid the consequences could be disastrous. You should stay in direct control of your insurance coverage and premium payment. This is too important to pass off to your property manager.
- Track and pay your Home Owner Association dues
If you don’t pay your dues, you can be fined, accrue attorney fees, and get a lien put on your property. You should have your HOA mail everything directly to you and pay your HOA dues directly to them. Also, HOA’s don’t respond well to third parties like property managers. They want a direct line to the owner regarding violations, assessments, amendments and community problems. You must stay in the loop, receive their communications, and get them to your manager to address. As much as you would like to pass this on to your property manager there is too much at risk.
- Contact with your home (builder) warranties
Warranty companies don’t respond well to third parties like property managers and tenants. They made promises to you, not us, and often we need your help getting them to respond. Also, they are not good at responding to emergencies. Property managers need your muscle with the warranty company when they have a problem.
- Turning the utilities on and off
Utility companies are making it harder and harder for third parties (management companies) to turn utilities on for someone else. Utility companies want the owner of the property to set up the account, pay the deposits and monthly bills when the property is vacant. Also, when property managers have multiple properties active with the same utility, the utility companies consistently misapplies deposits, charges and refunds. We are constantly fighting them (and the owner) over incorrect account records.The solution: turn them on in your name during the vacancy. It only happens every couple of years so it’s not time consuming.
Note: Utility companies will not allow third parties to set up "continuous service" preventing utilities from ever shut off. Only the owner can do this. Set up continuous service one time and forget about it forever.
You should not let your property manager manage everything. Some issues just have to stay under the owner’s control for their protection.
Come See Robert Locke at North Metro REIA Saturday June 12 – Click below for details!
Click below for a 45 minute radio program interview and educational content from our main speaker, a video introduction of this month’s meeting, and meeting details including 3 great focus groups, market update, free refreshments, business expo, and our North Metro REIA benefit of the month. Click on this link for meeting details: http://northmetroreia.com/category/main_meetings__subgroup_meetings/
