Putting your house up for rent is the first step towards making money off a rental property. Unless you have the time and resources to take care of every tenant concern and management issue, it may make more sense to find a property manager. At New American Funding, we love to help property investors achieve their goals, so we've put together a guide to help you find the right management for your rental home.

2. State Licensing Information.
The Basics of Property Management
We know that owning a home comes with a laundry list of responsibilities, but if
you’ve purchased it as an investment property, you’ll have a new layer of
responsibilities. While some homeowners often choose to manage their rental
properties, it can be much easier to hire a property manager to handle rental
duties.
Role of Property Manager
• Collect rent each month
• Communicate with tenant
• Find and screen tenants
• Manage maintenance and repairs
• Handle any notices to the tenant,
including eviction.
• Provide financial reports
• Set and adjust rent yearly

3. State Licensing Information.
How Much Does It Cost?
In addition to the responsibilities covered by most property managers, your
management levels are typically dictated by a contract. Additional services, like
preparing a lease or inspecting the property, may cost extra. However, property
management is often surprisingly affordable for many homeowners.
Typically, property management costs about 6-8% of gross rent, and may increase
to 10% in some cases.
Upfront Costs
Many companies may also charge
up to 100% of the first month’s rent.
Much of this initial fee covers the cost
of screening tenants and for any
advertising of an empty home that
may have been required.

4. State Licensing Information.
What To Look For
In addition to the responsibilities covered by most property managers, your
management levels are typically dictated by a contract. Additional services, like
preparing a lease or inspecting the property, may cost extra. However, property
management is often surprisingly affordable for many homeowners.
Since most of a management agreement is contractual, it’s important to check for
potential trouble spots before you sign with a management company.
• Does the manager get paid when the house is vacant? Rushing to fill a vacancy
can result in bad tenants.
• Will the manager help you advertise your vacant listing?
• How are repairs handled?
• Does the manager provide liability insurance for the tenants they find?

5. State Licensing Information.
Get Referrals
Your real estate agent will be one of the best sources of potential property
managers, so they should be one of your first calls once you’ve decided to hire a
manager. Other property owners will also be able to provide referrals.
Once you’ve identified a potential management partner, ask for references and
make sure to follow up with them.
Do Your Own Homework
Similar to real estate agents, property
managers are licensed and regulated.
In addition to your state’s Real Estate
Commission, there are plenty of trade
organizations for property managers.
Don’t hesitate to check credentials.

6. State Licensing Information.
Interview Potential Managers
Just like your real estate agent was an ally when choosing your home, your
property manager should be an trustworthy partner. Once you have a handful of
referrals, take the time to interview several candidates.
A good property manager will have a plan to find and screen potential tenants,
how to advertise an empty rental property and more. Ask your potential manager
plenty of questions, including their record of placing tenants in properties.

7. State Licensing Information.
Interview Potential Managers
Here are some of the most important topics to cover with a prospective manager.
• How long have you been managing property, and how many properties do you
currently manage?
• How do you find and select good tenants?
• How will you show the property to tenants?
• What additional fees and management costs will I pay, including marketing?
• How do you manage vacant properties?
• How and when are expenses passed along to me?
• How are repairs managed to remain competitively priced?
• Will you inspect the property regularly?
• How do you report monthly finances?
A good manager will be happy to answer your questions and share their vision for
managing your rental. So don’t take the first manager recommended – always do
your homework!

8. State Licensing Information.
Choosing a Property Manager
for an Investment Property
Learn more about financing investment
properties at
www.NewAmericanFunding.com

9. State Licensing Information.