California Foreclosure

Homeowners today are more and more often making the choice to rent their home rather than sell due to the decreasing property values in todays economy. This has made it even more important to the landlord to find a reputable, experienced property manager to help them through the process. In the past, a property manager would focus mainly on home maintenance, rent collection, and vendor management, but the new environment has made it very important for the property manager to also find suitable tenants quickly. This is not always an easy task, particularly with higher end homes.

I believe homeowners are more concerned with reputable and stable tenants because they are now often looking to rent their homes long term or with a lease to purchase option rather than short term or vacation rentals. The financial and emotional risk to a homeowner is greater when market conditions force them to rent instead of sell their home.

Homeowners or prospective tenants should consider the following factors when selecting their property management company:

1. Licensing. Many property management companies in Colorado are not licensed with the Colorado Real Estate Commission, because its not required unless the company manages a certain number of properties. A licensed company must abide by the laws of the Commission and is legally accountable to both the homeowner and tenant. Without proper licensing, consumers can easily be subject to fraud and identity theft with no recourse.

2. Tenant Pre-Qualification. The property management company should take the time to pre-qualify all tenants by running a confidential background check including credit and prior criminal and rental history. This saves time up front for both parties and mitigates the financial risk for homeowners.

3. Expertise in Real Estate. Its important to have experience in todays marketplace. A property manager with a full menu of experience in all management areas will understand the needs of buyers and sellers and help them to create a win win situation for all.

4. Collaboration in the Local Area. It is critical that the property management company you choose is well known and respected in the local real estate market. The rental market is changing at breakneck speed and your manager must have a great grasp of the local neighborhoods as well as be tuned into to local broker network to discover properties for rent that may previously only been available for sale.

The company I helped found here in Denver, Denver Rent a Home, has spent a lot of time perfecting the rent to own process, including finding quality tenants, in order to make the process easy for homeowners and tenants alike. The use of online tenant screenings has helped find quality tenants quickly and efficiently. It is also a standard practice to understand our customers and their needs right up front, as well as run background checks and other tenant review processes for every property.

In short, be careful to choose your property management company carefully, whether you are a homeowner or prospective tenant. You should be wary of companies that dont have the proper licensing, qualification procedures and experience. While this may seem obvious, many people dont understand the licensing requirements or where they run risk in a rental situation. You should also ask to speak to current clients, so they can better understand the customer service experience and what to expect throughout the process.

A great property management company really wants to make sure they understand their clients and know the properties as if they were their own. They understand people are putting their trust in them to place great tenants in their home and they should take that very seriously.