The Advantages of Hiring a Management Company for Your Rental Property
Purchasing Hawaiian real estate for investment purposes is usually a wise decision, as the demand for such rental properties is strong and is expected to remain so. For all the financial advantages of investing in rental real estate, there is also one disadvantage, and that is property management.
If you do not live in the area or are not particularly handy, taking care of the property becomes a difficult, if not impossible, task. Fortunately, a property management company can take care of your rental for a reasonable fee, so that you can enjoy both the income generated by the rental and its appreciating value.
Hawaiian Law Requiring Property Managers
If a landlord does not reside in Hawaii, or lives on a different island from the one on which the rental property is located, state law requires that the landlord hire a property manager based on the same island as the rental property.
The Role of the Property Manager
A property management company can take care of all the rental unit’s needs from beginning to end, including the screening of potential tenants. Property manager duties may include:
- Rent collection
- Routine inspections to ascertain the condition of the rental
- Maintenance and repair services
- Financial reporting, so owners can keep track of their investment.
If problems arise, such as the need to evict a tenant, the property management company will also pursue the matter in court on behalf of the owner. Once the tenant is evicted and gone, the property manager will make any necessary repairs and renovations and work to rent the property again as soon as possible.
What to Look For in a Property Management Company
There are certain essentials required for a good property management company, and you should conduct your research as thoroughly as you did when buying your rental home. First, you want a company deeply familiar with the Hawaiian real estate market. Second, you want a company with a strong property management track record.
When deciding upon property managers, ask the following questions to figure out the best fit for your situation:
- Are you a licensed realtor? In Hawaii, all property managers must hold a real estate broker’s license. Without such a license, a company cannot engage in the process of renting out properties owned by another entity. Check with the Hawaii Department of Commerce and Consumer Affairs to verify such licensing.
- How many properties does the company manage, and how long has it been in business?
- How often does the company report to the landlord?
- What are the record and account-keeping methods used?
- What is the property management company’s liability?
- What are the fees?
In addition, make sure you receive a list of all duties the management company performs, in writing. It is often possible to negotiate certain duties if they are not part of the standard property management agreement.
If you’re looking to buy or sell a home, find a rental property or rental property manager, you need a knowledgeable, experienced realtor familiar with all aspects of the Hawaiian real estate market. Contact Island Realty Group LLC at 808-689-7407 or IslandRealtyGroup@irghi.com.