They broke into your property, stole and damaged everything!
Everybody has bad days when the sun is not shining. But, you can be ready for, or try to avoid those days if you pay attention to some things in your Property Management contract.
In my years as Property Manager, and today as a Real Estate Investment Advisor, I’ve encountered many of these situations that could easily been avoided. Imagine that you get robbed, and also you are the one to blame. I’d be pissed the fuck off too. And this happens a lot.
But, these stories are not fairy stories with happy endings. You may have done everything that needed to be done on your side, but that is not enough. You need to be sure that the Property Management Company, or the individual Property Manager, do whatever is best and safest when making decisions about your property.
Trust, but Verify
As everything in this world, you need to read carefully everything you sign, ad don’t be afraid to ask questions if you don’t understand something.
If you haven’t read your agreement, maybe is time you do it now. Don’t wait until it’s too late.
When it comes to laws, you don’t have to do anything you did not accept to do. Always make sure that all work is completed, no matter how insignificantly it may seem, be kept track of.
When it comes to work-related issues, it has to be on paper. It doesn’t matter if they told you that they were going to “take care of it”. In my experience, I’ve learned that “keeping an eye on a property” could simply mean looking at the property on Google Maps.
So, do yourself a favor and go and look for that agreement, or contract.
Important Clauses on your Property Management Contract
The next is just as important thing is to make sure what you “Coverage actually Covers”, it is best to determine if a break-in is your fault or not, or if you will have insurance coverage now and not after the fact.
You have to keep in mind that insurance companies are not there to be your friend. So, the best way to avoid them is to make sure that everything is clear in your contract.
For example, pulling permits.
As an investor, you need to know that all your constructions and remodels have to be approved by the local jurisdiction to avoid being sued or getting fines. I know many contractors that cut corners and avoid paying this nominal fee that will help your case if there ever should be one and the insurance company probes this information.
Be extremely sure that your Property Management company has all the phone numbers and contact info for the insurance company. When the time is of essence, you need to make sure that all the contact information is current and available.
If you’re interested in more tips about how to avoid theft by your Property Manager or your Property Management Company check out my e-book Your Property Manager Is Stealing From You. Is just 15$, limited offer!