Luxury homes come in many types – penthouses, country estates, mountain chalets and beachfront retreats and high-rise apartments to name a few of the popular ones.
Cost is always one of the major things that define luxury homes, primarily because it always involves huge amounts that could feed an entire third world country and pay off their debts. They always featured first-class amenities that were almost like those you can find in most five-star hotels and their square footages were always at or more than 5000.
A home with 53 bedrooms and 30 bathrooms? With figures like these, it is safe to say that nothing about a luxury home is diminutive, small, tiny or even lacking.
As such, your property management services need to be nothing short of excellent, with your managers absolutely knowing the ins and outs of taking care of these luxury homes. From maintenance to security, to knowing all the legal options for eviction, subleasing and tenant rights, the company you hire must be able to do all these with their eyes closed and hands tied behind their backs.
For most landlords, hiring a professional company is like your bi-annual visit to the dentist – painful and something that needs to be avoided at all costs.
It’s not for a lack of companies to choose from, but more of which company to choose, one that will definitely give you your money’s worth and more importantly, a quick return of investments. While some landlords prefer to base their decisions on personal recommendations from friends, family or colleagues, there are those who prefer to learn the business from the ground up and then once you feel that you are ready to turn over your responsibilities to someone else, find that someone and train them because that way, you can be sure they will do things right.
But then again, not everyone has the time to learn property management so to start, find out from your potential companies how many properties they are handling right now. At best, they must be able to manage between 30 to 40 units, including the employees in each unit.
The logic behind this is once you start buying more properties that means you’re going to have to add to the units you have them managing now and you want to know if they will be able to handle the added responsibility admirably.
You don’t want to hire a property manager who also own rental properties.
Not only will it foster competition but it also means that this person you are planning to put in charge may not be able to perform their duties to full capacity. One of the main things a property manager for luxury homes needs to do is frequent spot checks and if they are also taking care of their own properties, what guarantee will you have that they will give yours the attention and care it deserves?
Another thing you don’t want is for your property manager to constantly cut you off or talk over you. He or she should ideally be people-oriented as well as customer-centered. If this person tends to talk over you and finish your sentences for you, he or she will most likely be the same way with difficult tenants or staff. You want to retain tenants, not send them away.
With the abundance of automated property management software to assist in the administrative and risk management duties of a property manager these days, your potential manager should be able to share reports with you upon request.
If you see that they seem to be hesitant about sharing their reports with you or don’t seem to have at least a working knowledge of the software, then it may be time to continue shopping around. You also need to make sure that they will be willing to commit to submit reports to you at an agreed upon day every month.
Know that these property managers charge between approximately 7% to 10% of rents they collect.
Make sure that the company you choose will only charge you for the rents they actually collected as there are some who will insist that you pay them the same percentage regardless if all the rent was collected.
This applies as well to maintenance issues as some managers will charge an additional 10% in addition to the total invoice cost. Find a property manager who will be willing to waive this for you, as well as someone who won’t go over $250 on repairs.