Hiring Property manager

[LJS]

Hi all,
We have just purchased our first property and will now be hiring a property manager. We have 2 names given to us by our realtor. He said that one manager is a "licensed property manager" (at 10% fee) while the other (at 8% fee) is an "unlicensed property manager". As long as the unlicensed manager is bonded, should there be anything else we should be wary of?

Lori

 

[kennicoll]

for a difference of 2% stick with a licensed property manager due your own due diligence on the management cheers ken congrats on your purchase

 

[dplummer]

I believe that an unlicensed manager cannot collect rents or handle banking related duties. Remember, you get what you pay for.

Doug

 

[Dan_Eisenhauer]

Property managers in BC and AB are required to be licensed by the province. I don`t know about other provinces. (Nova Scotia does not have a separate PM license.) If they are not licensed, they are breaking the law... plain and simple.

I doubt there is any repercusion on you of they get caught... other than you would be left scrambling for a new PM with very short notice.

Be very cautious when dealing with non-licensed real estate personnel. Licensed PMs are required to meet a minimum standard of education. What qualifications do the non-licensed ones have?

 

[GarthChapman]

With the unlicensed PM - the money they hold for you (rent and deposits) is not insured. If they don`t pay you then you are not protected.

 

[Nir]

Basic question - how do you confirm/check a PM is licensed? (except just ask him ) thanks.

 

[GarthChapman]

In layman`s terms as I understand it - In Alberta the PM will be able to show you a Real Estate Broker`s license that the PM operates under. If the PM is a different party than the Broker then there will be some document to show the PM is operating under the Broker`s license.

 

[Nir]

Thank You Garth.

I guess it is the same/similar in Ontario where I am purchasing.

Cheers,
Neil

 

[brentdavies]

Hi Lori,

As a property manager with lots of grey hair, there is a lot to look for in a property management company.

Basic question, would you use a lawyer or doctor who is not properly licenced.

In Alberta, property managers and realtors have the same licence, just different specialities. Check with www.reca.ca and use licence search. Licenced firms handle all funds under trust conditions.

If you live in the same city or local that you invest in, do your own property management for 2 years, then hire a property manager. You learn about your customers (tenants) and how to effectively work with them.

Stay away from the 8% guy.

Good Luck