Category: Real Estate Operations

Understanding Real Estate Building Components

As a real property owner, it’s important to understand the basics of every major structural component of your property.  This article discusses the fundamentals of air conditioning. 

A basic understanding of your air conditioning system impowers you with the ability to make an informed decision about one of the major components of your real estate; such as whether to repair or replace the system.  At the very minimum, having basic knowledge of air conditioning will limit the ability of unethical HVAC (heating, ventilation & air conditioning) companies from taking advantage of you.  If they see you have knowledge of the major components, and how they contribute to the process it may give them pause if they are considering ripping you off.

To make things simple we’re going to break the process down into small bite size chunks.  We’ll start with the Objective, then move to the Components, then the Science and we’ll pull this all together.

The Objective

Air conditioning systems fill a fundamental purpose, to cool an area inside your real property.  Contrary to what some people believe, air conditioners don’t bring cool air to an enclosed space.  Air conditioning systems take away hot air.   The cycle of an air conditioner is to capture heat from one area (inside), transport and release the heat somewhere else (outside), and then repeat the heat capturing, transporting and releasing processes again and again. 

Science plays a major role in the process of capturing and releasing heat.  So take an hour, or two, look for those high school science text books (they may be a bit dusty) and I’ll wait until you get back. Just kidding, we won’t need them.

Before we discuss the science let’s look at the major components inside the air conditioning system.  

The Components

The major components of an air conditioning system are:

• The Compressor – A pump that pressurizes refrigerant gas and moves it to the condenser.
• The Condenser – Removes heat from refrigerant. This heat removal from the refrigerant transforms gas into a liquid.
• The Expansion Valve – Regulates the refrigerant flow into the evaporator
• The Evaporator – Liquid refrigerant transforms to gas and absorbs heat from the surrounding air causing the air to cool.  A fan blows the cool air into the room.    

The diagram below illustrates how these components form a circular system.

In addition to the major components there are also other components that are noteworthy.  They include:

• Fans – Work with the evaporator to blow cool air into the room.  Work with the condenser to blow hot air into the outside environment.  
• Thermostat – Used to regulate temperature in the indoor space.

The Science

The “secret sauce” of an air conditioning system is the Refrigerant.  This is where the science comes in. 

What is a refrigerant? A refrigerant is a substance that changes from liquid to gas (and gas to liquid) during the air conditioning cycle. 

The science behind the refrigerant is what is called phase conversion.  Phase conversion is when a substance changes from a liquid to a gas (for example, heating a pot of water and converting the water into steam)  or when a gas changes into a liquid (for example, water that drips from your mirror after taking a hot shower). 

During phase conversion heat is either absorbed or released by the refrigerant.  When a refrigerant changes states from a liquid to a gas the refrigerant absorbs heat from the surrounding air.  That’s why steam burns are more painful than burns from boiling water .  There is more heat content in steam.  Conversely when a refrigerant converts from a gas to a liquid the refrigerant releases heat into the surrounding air. 

Unlike water that converts into gas at a temperature of 212 degrees Fahrenheit, refrigerants used in air conditioning systems boil at temperatures between 40-50 degrees Fahrenheit.   This ability to boil at such low temperatures means that the refrigerant can be converted from a liquid to a gas at room temperature.   

The Air Conditioning Cycle

Let’s put the components and the science together and create our air conditioning cycle.

1. The first stage of the air conditioning cycle starts with the compressor pulling in the refrigerant (in the form of gas).  The compressor is called compressor for a reason.  It literally compresses the refrigerant gas.  Think of taking a bicycle pump and adding more air to your tire.  The more you pump the more the air in the tire gets compressed.  Also note, if you continue to add more air to the tire the pump gets hotter.  This heat is absorbed by the refrigerant.
2. The hot, high pressure (compressed) gas is moved to the condenser.  The condenser is located outside of your property.  The purpose of the condenser is to discharge heat from the refrigerant. This removal of heat is caused by the natural movement of heat, which moves from hotter areas to colder areas.  That’s why you can feel the heat if you stand next to something hot.  Hot things give off heat to the colder surrounding environment.  The hot gas from the compressor is hotter than the external temperature.  As the hot gas begins to cool  it starts the process of phase conversion.  The refrigerant changes from a gas to a liquid.  If you ever stand outside a condenser you can feel the hot air being blow from it.
3. Next this liquid/gas refrigerant mixture moves to the expansion valve.  Here, the expansion valve starts the process of lowering the pressure of the refrigerant thereby allowing the refrigerant to expand into a gas. 
4. The final stage of the process is the evaporator.  In the evaporator the liquid/gas refrigerant mixture becomes a gas. Remember, the unique quality of air conditioner refrigerants is their ability to boil and turn into a gas at low temperatures (40-50 degrees Fahrenheit) .  At room temperature the refrigerant can boil and convert from a liquid to a gas.  If you recall the science of phase conversion that we discussed above; when a substance changes from a liquid to a gas it absorbs the heat around it.  In the evaporator, cool air is created by the refrigerant taking the heat away from the surrounding air.  A fan is used to blow cool air away from the evaporator into the room that you want cooled. 
5. The cycle is complete when the gas from the evaporator is sucked in by the compressor (step 1 above).  The cycle repeats itself until the system is shut off.

There you go.  You now have the basics of a conventional air conditioning system.  Variations of this system occur depending on the size.  For example window air conditioners have all the components contained in a single location (the air conditioning unit) while central air conditioners have the compressor and condenser outside of the house.   In large buildings some components are located on the roof and others in the basement.  No matter what system you have use your new found knowledge as a springboard to a better understanding of your system

4 Easy Steps to Locating the Best Real Property Attorneys

Finding a great real estate attorney is not something that you leave to chance.  Investing the time to find, and build, a successful client/attorney relationship will last a lifetime.  This article will help you use your search time wisely and find the attorney you deserve.   

We have broken down the process of finding a great real estate attorney into four steps:

1. The Search
2. The interview
3. The Analysis
4. The Decision

The Search

The first step in your search for a great real estate attorney is to clearly identify your specific real property needs.  Real estate is not simply about buying and selling real property.  Other real estate needs include: title disputes, breach of contract/contract disputes, landlord/tenant disputes, easements, transfers of title & ownership, property liens, insurance litigation and more.

After you determine your specific needs contact your State and Local Bar Associations and use their referral services to help you find a real estate attorney. State bar associations maintain records on complaints and/or disciplinary actions taken against attorneys licensed in their states.  To find a listing of state bar associations visit the American Bar Association website  (https://www.americanbar.org/groups/legal_services/flh-home/flh-bar-directories-and-lawyer-finders/). .  The website lists the state bar associations.

The next step in the search process is to visit the websites of each real estate attorney.  Read the attorney bios and write down the years of experience, background and law schools in which your candidate attended. Is the information clear?  Do you feel comfortable with the content?  Does the website look professional?  What credentials are discussed?  Use this information to create your first ranking.

After you’ve done your initial online research talk to friends, family or colleagues and ask for recommendations.  You may be asking, “why don’t I ask my personal contacts before researching online?”  We recommend doing independent research first to avoid limiting your selection process. Let’s face it, if someone gives you a legal referral, you’re likely path is to look that referral up online and then end your search if the website looks good.  You won’t think about better options.  By starting your search with a clean slate, the population of potential real estate attorneys expands and increases the odds of finding the right attorney for you.

After you’ve done your independent search compare the personal referrals you receive and see if those real estate attorneys match the attorneys you found on your search. If so, move those attorneys up on your ranking sheet.  If the referrals are not the same as your independent searches check the referrals for any complaints or disciplinary actions with the State and Local Bar Associations.  Consider what made you not choose those attorneys during your initial search.  If the referrals get a clean bill of health from the Bar Association add her/him to your ranking sheet.

The Interview  

Use your ranking sheet to set up a free consultation with each attorney on the list.  If one or more of your candidates don’t offer free consultations determine if they should be removed from consideration.  Why pay for a consultation when you don’t have to?  We suggest scheduling as many consultations as you can in a single day.  It’s far easier to compare candidates while the meetings are in the forefront of your memory. 

It’s important to come prepared for your consultation.  Remember an attorney’s time is money.  Organize all documents you want to present to the real estate attorney.  After the initial introductions get to the point of why you need her/his services. Bring a written outline of questions. Include names, addresses and dates of events, if necessary.  It should go without saying to come with a pad and pen to take notes. 

Some questions you may consider asking include:

Legal fees – How are going to be billed, hourly, or is there a flat fee for the service?

Availability – Does the attorney have the time to represent you?   

Timeline – How long will it take to begin the process? What is a reasonable expectation for a conclusion?  Does the attorney foresee any issues moving forward?

Odds of success – No attorney can guarantee an easy path to success, but they should give you an idea if your case has merit and prior outcomes of success with similar cases they’ve handled.

The Analysis

Now that you have answers to all your questions it’s time to sit down and compare the answers.  As you go through this process use your instincts to guide you as well as the answers in front of you.  How do you feel about the answers you received?  Are some answers more complete, and detailed, than others?  How did you feel when talking about your case?  Did the attorney make you feel important or did she/he discourage you?  Did the attorney use too many legal terms that made you feel lost? As you weigh the answers you will start to revise your ranking order based on who you prefer and who you should immediately eliminate. 

With the remaining candidates on your ranking list compare the fee structure.  If there is not a material difference between the candidates consider if the price difference changes your ranking order. Also review the availability of the attorneys and make sure your schedule coincides with his/her availability. 

How much did you personally like the attorney? How much did the attorney like you?  We’re all humans and we tend to go the extra mile when we like who we’re working with.  I hired an attorney who offered me an option to save money by changing the fee structure in the middle of the engagement.  Being pleasant and professional with your attorney does pay off.

The Decision

After you’ve finalized your analysis it’s time to decide on an attorney.  Before contacting the attorney tell a family member, friend or colleague why you chose your attorney.  Stating your reasons out loud will either reinforce your decision or let you know you have more analysis to do.  Once you’re confident with your decision reach out to your selection and ask her/him for an engagement letter.  This document should include items such as:  description of the legal services being provided, fees, retainer policies, costs and expenses, billing polices, and what happens if you don’t pay.

Review any documents your attorney provides you and ask as many questions as needed before signing.

 Never sign a document without fully understanding each parties’ rights, obligations and responsibilities. 

Now that you have your new attorney trust her/his process.  Good luck. 

Have Energy Service Companies (ESCOs) in Deregulated States Been a Sham?

Utility expenses can be some of the of the largest monthly real property expenses. When several states decided to deregulate the supply of electricity and natural gas many real estate owners expected to see significant savings on their utility bills. Unfortunately, these expectations have not materialized.

This article will provide you with a brief background on energy deregulation, why savings for real estate owners has not occurred, and provide you with pitfalls to avoid when dealing with an Energy Service Company (ESCO) that can save you money.

Summary of Deregulation of Energy

In 1996 several states began the process of deregulating the utility industry. Prior to deregulation one utility company supplied the commodity (electricity and/or natural gas) and delivered it to its customers.
Deregulation gave utility customers the opportunity to choose their commodity supplier. This gave rise to the commonly used acronym ESCO (Energy Service Company). The goal of deregulation was to create competition and drive utility prices down. Deregulation didn’t change the utility company that delivered the commodity to your real property, but it did give consumers the option of who supplied the commodity. This splitting of commodity supplier and commodity deliverer at times resulted in receiving two bills, one from the energy supplier (ESCO) and one from the company that delivered the energy to your property. Deregulation did not give consumers the opportunity to choose which utility company delivered the commodity because those incumbent utility companies needed to stay in place in order to maintain the infrastructure that delivered the commodity to your property.

Not every state offers energy deregulation so it’s important to check with your local public service utility company to see if your state is a deregulated energy state. Below is a current listing of deregulated states for both electricity and natural gas. The grid is customized for residential real estate owners (some states are deregulated but don’t offer residential property owners a choice of suppliers).

The Goal of Deregulation

The goal of deregulating the energy industry was to bring prices down. Prior to deregulation utility companies faced no competition and therefore had no incentive to lower prices. Allowing other companies to enter the marketplace would expand customers’ choices and force the suppliers to compete for your business using lower prices as their main tool to attract customers

Unfortunately. deregulation has not brought about the desired results. An April 2019 report by the American Public Power Association (Link: https://www.publicpower.org/periodical/article/residential-rates-deregulated-states-saw-uptick) , found that deregulation has not lowered energy prices, as compared to regulated states. There are many theories as to why deregulation has not significantly lowered energy prices. Let’s discuss a few reasons.

Why Deregulation Has Not Lived Up to the Hype

Deregulation has not delivered the results desired due to several factors. The good news is that some of these factors are controllable. Let’s start with the non-controllable reasons.

Non-Controllable Reasons

(1) States that mandated deregulation were typically states that traditionally had higher energy prices, as compared to the national average. One of the main drivers of these higher energy prices is related to fixed infrastructure costs. The infrastructure costs, the costs to produce and deliver the commodity, play a role in driving prices. If you’re in a state that consumes less energy per customer the fixed costs are spread among fewer consumers, as compared to states which consumes a larger energy supply per customer. Deregulation does nothing to lower those infrastructure costs or increase the number of consumers demanding the commodity. Therefore, deregulation cannot help lower energy cost as it pertains to this effect on prices.

(2) Energy prices are driven by global markets. Deregulation cannot lower the price when unexpected supply shortages occur due to natural disasters or terrorism; and it cannot lower excessive demand due to unfavorable weather conditions. The law of supply and demand and the expectation of price movement by speculators plays an important role in price movement.

(3) Another uncontrollable driver of energy prices is each state’s level of access to alternative energy sources such as hydroelectric and renewable energy. The more competition to supply energy, the more pressure there is on prices to decline.

Controllable Reasons

There are also many controllable decisions you can make to avoid mistakes that are costing consumers in deregulated states. We recommend that you use a broker or energy consultant to help you avoid some of the pitfalls that occur when real estate owners directly negotiate with ESCOs.

(1) Not understanding the purpose of an ESCO – There are common misconceptions about dealing with ESCOs that lead to a less than stellar performance. Using an ESCO does not guarantee that you get the lowest prices at the time of purchase. Electricity and Natural Gas are globally traded commodities. There is no way to time the markets to get the lowest prices. The odds of doing this is equivalent to trying to buy Microsoft on the New York Stock exchange at the lowest price of the year.

ESCOs can help you in executing your purchasing strategy whether it’s buying a commodity for a fixed, variable or mixed price. They also can execute contracts with various lengths ranging from months to years. Competent ESCOs understand their client’s tolerance for risk and execute a purchasing strategy to meet those needs. For example, ESCOs can create budget certainty for real estate owners by executing a fixed rate electricity contract for one year. With a fixed rate utility contract as market prices increase your commodity price stays fixed for the duration of the contract.

With this strategy there is a downside if prices fall, you’re locked into paying the agreed upon higher prices. In other words, ESCOs can help real estate owners determine if they want to bear the risk of price movements or not. Conversely real estate owners can purchase the commodity at the market price if they feel energy prices will decline. This strategy puts all the risk on the real property owner if prices rise. Many ESCOs offer their clients a mixed price where part of the price is variable and the other part is fixed. This is a way to hedge against extreme upward price movement while still being able to enjoy cost savings if prices go down. Since ESCOs have years of historical price data and a closer ear to the market they can give you insight on pricing strategies and the timing of when to lock in rates. Note, ESCO’s may not have your best interest in mind so it’s advisable to hire an energy broker/consultant.

(2) Not understanding the ESCO Contract – Energy supply contracts can be very confusing and filled with hidden traps and teaser rates. Many lay people fall victim by going after the cheapest prices and fail to understand that these rates are only temporary. A broker or energy consultant can help you compare apples-to-apples and not have you chasing shiny objects that disappear after a few months. Pricing alone won’t save you money. Energy contracts have monthly quantity limits. If you exceed the monthly quantity you may be paying market prices on the excess quantity used. Ask your ESCO for protection for exceeding the monthly quantity limits.

(3) Not paying attention to details – Many consumers in deregulated states have squandered away any potential saving by not paying attention to the details in their contract. One of the most costly mistakes real estate owners make when signing up for fixed rate contracts is to allow their fixed rate contracts to expire without renewal. When fixed rate contracts expire they become market rate contracts. During periods of rising prices many real estate owners have found themselves unknowing in a variable rate market contract during the peak heating or cooling season. Staying vigilant and continually monitoring your contract will prevent this mishap from occurring.

Finally, make sure you’re paying the correct sales tax rate on your utility bill. Utilities sometime mis-classify the type of real estate and subject you to higher sales tax rates. This scenario typically happens when a residential customer is charged commercial sales tax rates.

As stated, energy costs can be a significant portion of the total expenses in owning real property. If you live in a deregulated State you may not automatically find the cost saving you’re looking for. That does not mean you don’t take advantage of the lowest energy supply rates available. Cost savings is relative, just because your state’s average utitity bills have not gone significantly down does not mean you don’t have a responsibility to try to minimize them. Use the grid below to see if your state is deregulated, and offers choice to residential property owners, then find an energy broker/consultant to help you determine your risk profile and then match the available deals to your needs.

Note:  “No” means there is not choice of supplier for residential property owners.  “Yes” means there is choice for residential property owners.  If a state is deregulated but only offers choice to industrial and commercial customers it is marked as “No”. 

State	Electricity	Natural Gas
Alabama	No	No
Alaska	No	No
Arizona	No	No
Arkansas	No	No
California	No	Yes
Colorado	No	Yes
Connecticut	yes	No
Delaware	yes	No
District of Columbia	Yes	Yes
Florida	No	Yes
Georgia	No	Yes
Hawaii	No	No
Idaho	No	No
Illinois	Yes	Yes
Indiana	No	Yes
Iowa	No	No
Kansas	No	No
Kentucky	No	Yes
Louisiana	No	No
Maine	Yes	No
Maryland	Yes	Yes
Massachusetts	yes	Yes
Michigan	Yes	yes
Minnesota	No	No
Mississippi	No	No
Missouri	No	No
Montana	No	Yes
Nebraska	No	yes
Nevada	No	no
New Hampshire	Yes	No
New Jersey	Yes	Yes
New Mexico	No	yes
New York	Yes	Yes
North Carolina	No	No
North Dakota	No	No
Ohio	Yes	Yes
Oklahoma	No	No
Oregon	No	No
Pennsylvania	Yes	Yes
Rhode Island	Yes	Yes
South Carolina	No	No
South Dakota	No	No
Tennessee	No	No
Texas	Yes	No
Utah	No	No
Vermont	No	No
Virginia	Yes	Yes
Washington	No	No
West Virginia	No	Yes
Wisconsin	No	No
Wyoming	No	Yes

Many first-time real estate purchasers and sellers take the easy route when it comes to finding a real estate agent.  They ask someone they know for a name and contact information, call/email the agent and ask a few questions (mostly how much in commissions they pay) and then they sign the contract.

If only life were this easy we’d all be happier. This situation reminds me of a sign I once saw in a popular local restaurant, “we don’t make fast food, we make good food”.  Nothing worthwhile comes so quick and easy and not taking the time to do your due diligence can cost you in time and money.

Before signing an agreement with a real estate agent invest a little of your time in getting to know more about your agent to ensure you’re getting what you pay for.  Below are six questions that you need answers to so that you can increase your chances of finding the right real estate agent.

Who knows this agent?

Start with the referral process.  I know what you’re thinking,  “didn’t you just say not to use the referral process to find an agent?”.  No I didn’t.  I said don’t solely use the referral process.  Getting a referral is a great starting point but don’t be lazy, you have more legwork to do.  Having friends, colleagues, or family share their experience is helpful in narrowing down your search but be mindful that everyone has different circumstances and just because your cousin loved his agent doesn’t mean you’re going to get the same level of service.  And even if you get the same level of service you have to take into account that everyone has different standards.  Don’t let someone’s lower standards influence your decision.  

How many years of experience in my marketplace?  

How connected is your agent with the local community?  Some of the best deals occur when somebody knows some “inside” knowledge.  I’m not talking about unethical behavior but there are times when knowing the gossip or backstory of why a person is selling/buying or  how flexible/inflexible they are helps move the deal along.  You also want the inside scoop so you don’t waste your time on a deal that will never take place.  The agent may also know industry people in other trades (inspections, construction, banking) that could strengthen you negotiating position or cut through red tape.  Remember that the true value of a real estate agent is not just showing real estate, it’s their ability to seamlessly guide  you through the process.

How many years of experience in other market places?

Having experience outside of your market gives an agent a different perspective and approach to navigating through difficult situations.  Being a real estate agent is like any other profession.  If you do the same thing over and over again you tend to get stuck in a box and lessen your creative problem solving skills. You also don’t want an agent who is so boxed into their own market that they don’t try new idea (i.e. social media to sell) because “it’s never worked in the past”.

What licensing & certifications does this agent bave?

 Each state has it’s own state agency that oversees the licensing requirements for real estate agents.  Check with your state’s real estate regulator to find out if your agent is licensed and if so, does the agent have any disciplinary actions.  Make sure your agent at a very minimum is a member of the National  Associate of Realtors (NAR).  The NAR has a code of ethics that every member has agreed to abide by.  There are other certifications that realtors have: CRS (Certified Residential Specialist): Completed additional training in handling residential real estate, ABR (Accredited Buyer’s Representative): Completed additional training in representing buyers in transactions, SRES (Seniors Real Estate Specialist): Completed training aimed at helping buyers and sellers aged 50 and older.  If a realtor you really like does not have one of these additional certifications it shouldn’t be a deal breaker but having additional certifications does show the realtor is committed to expanding their knowledge in their profession.  At the bottom of the article there is a link to the National Association of Realtors member search.  

Is this the agents sole source of income?

This question may seem intrusive but knowing that your agent’s sole source of income comes from being an agent will tell you (1) how successful they are at their job and (2) how much of their time can be devoted to your needs.  I’ve personally experienced dealing with an agent who was a yoga instructor.  She used real estate as a “side gig”.   After our contract expired, with no results,  I found a full time real estate agent who showed me what a professional realtor experience was.  You want an agent who is free to provide you service when you need it (i.e. during working hours or after hours) and not have to wait until your realtor gets off from their other job(s).  You don’t need to know how much money your realtor makes but you should know if he/she has divided loyalties that may get in the way of serving you.

What is the agent’s social media presence? 

When you search their name what do I find?  Does the broker have no online presence?  Does their social media content give you a better feeling for who they are?  If available, read online reviews with a grain of salt.  Anomalous online review websites can be manipulated by posting exaggerated negative comments by dissatisfied customers or excessively positive comments by friends and family.  

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After you’ve done your homework and found all the answers to the above questions satisfactory schedule a face-to-face meeting with your final choices.  Ask for, and check, their references  If all things are equal choose the agent who makes you feel most comfortable and trust the process. 

‘’If you’re interested in finding a member of the National Association of Realtors click on the link to begin your search.

https://www.nar.realtor/rofindrealtor.nsf/pages/FS_FOFFICE?OpenDocument

Hiring a great property manager can be tough. Many people make the mistake of not taking the time to think about the qualities that make up an ideal property manager. Some people make the colossal mistake and hire a property management company and trust them to assign a property manager to their property. Others do slightly better and are introduced to their property manager but the real estate owner(s) treats the meeting more like a “meet & greet” than an interview of someone who may to protecting their most valuable asset.

Managing real property is not easy. It requires a broad knowledge which includes, but is not limited to: understanding building components, managing building staff & third party vendors, knowledge of insurance & claims, knowledge of finance & accounting, providing quality customer service, organizational skills & time management.

Before you make the decision to hire a  property manger there are four key areas where you and the candidate should be aligned.

(1) What Does the Property Manager Specialize In? – Property Manaers are no different than any other professionals. They all possess key strengths and have areas where they can improve. Your job as a real estate property owner is to match the property manager’s strengths with your real property needs. For example, some property managers  have a mechanical or engineering background, others are excellent communicators and coordinators of personnel, others great marketers. Know what your needs are as a property owner. If you are a board member of an aging condominium you may prefer a property manager with more capital projects experience. Conversely, if you owns a rental property you may prefer a property owner with extensive vendor contacts and cost management experience to maxi,Ive your return on investment.

(2) Experience & Access to Resources – As stated above, no one can have an endless depth of knowledge on all areas of property management but your property manager should have access to resources where he/she can quickly prevent or resolve problems that will occur. In larger property management companies there may be many internal resources. In smaller companies the property manager may rely on vendors or external colleagues to get information they lack.  Either way ask the question, “if something goes wrong outside of your core knowledge what do you do?”.

(3) What Processes Exist?  – Every well run property management company  should not only have an internal process for managing their business but must also have a process for managing your real estate. As a real estate owner you must ask the questions and understand what is the property manager’s process for handling complaints, emergencies, vendor bidding, paying bills, staying on top of real property laws, etc? What about the internal control processes of their business?  How do they monitor the quality of the property managers work? What financial internal controls exist to prevent fraud?


(4) Personality Is  Imporatant – Never underestimate the power of personality. This is not just a matter of liking your property manager but having your tenants/residence and you like your property manager. Never commit to a property manager without a face-to-face or video conference meeting. What type of greeting do you receive? Was their appropriate eye contact? How many “please” and “thank you(s)” do you hear? Manners go a long way in deescalating issues. They also build trust.

If you don’t have prior property management experience the ability to determine the skill level of a property manager can be challenging. As an owner you need to know what type of property manager you’re looking for. Don’t make the mistake of treating a property manager like an employee. They are your vendor and the really good ones will act like your partner..