Buying a new property is an exciting time for an investor, however, it can also be quite scary. Not only is it a huge financial commitment, but it’s a time consuming one as well.
The process of finding a home is usually the less complicated and generally understood aspect of buying a property. When it comes to the closing part, however, people can get fairly lost. That’s why it’s important to use the services of a professional, like a property manager, to make the process a little bit smoother.
If you’re not a property management professional, perhaps you don’t know that residential property management is one of the most highly regulated industries. Those in the industry have generally been in the profession for a long period of time. Therefore, they know all the ins and outs of the laws which are typically a forest to get through. So, make sure you hire a professional to take care of the difficult details for you.
Doing your due diligence and gathering as much information and documents from the previous owner as possible is key. Before closing, be sure you went through all the rentals, rental rates, and that you received all the estoppels at closing. Additionally, make sure the seller and buyer are doing their due diligence of getting you everything you need for an easy transition. Make getting these documents a contingency upon closing escrow when you can.
Now that you have made an offer on your San Francisco property and are waiting to close escrow, you want to start your search for a residential property manager. By having a property management company in place, you are ready to roll once the close of escrow happens.
The property manager will be the direct contact and liaison between you, as the landlord, and your tenant. After the property manager has found a reliable tenant for your property they can begin to do the following:
- Any financial transaction related to your property including monthly rent collection, reconciliation, owner distribution, and annual increase notices within the San Francisco rent control laws.
- Property management companies facilitate in all the maintenance required for the property as well as, locating and sending out a trusted vendor to complete the necessary work.
- Leasing services ranging from marketing the unit to the lease signing and process with new tenants.
- Any tenant issues which will be handled in a professional manner by the property manager.
- Anytime a notice is required the property manager will serve. Notices include: Three-Day Notices to Pay or Quit, Notice to Perform Covenants or Quit, Subtenancy Notices, etc.
- Handles all aspects of the move-out process including security deposits, walk-throughs when tenant moves out, and inspections.
San Francisco real estate entails many challenges, but it can be a rewarding investment if handled and maintained properly. Hiring a property management company prior to the closing of escrow will help maximize your profits.