You have made a large investment in becoming an owner of real estate in
Hawaii. To protect this investment and obtain the best possible return
on it, you must require only the most qualified professional management
services.
Managing residential real estate in Hawaii has been often compared to
working in a minefield on a daily basis. A few examples of these
"mines" which can cause monetary losses are:
| Federal and State Fair Housing and Discrimination Laws |
| Federal Americans with Disabilities Act |
| Federal Disclosure Acts |
| – Environmental |
| –Lead Paint |
| – Asbestos |
| State Disclosure Acts |
| – Sex Offender |
| – Material Facts |
| – Notorious Acts |
| State Landlord Tenant Codes |
| State and City Building Codes |
| Our litigious society (owner liability) |
| Potential tenant caused losses (rent, damage) |
To assure a property management firm is able to provide full time
professional management and to successfully protect your investment,
here a questions you may want to ask as you compare prospective
companies.
- What percentage of the company's real estate activity is devoted
to residential
property management?
- How long has the company been in business in Hawaii as a
property manager?
- How many rental units does the company manage? Will managing a
few units
provide the necessary experience?
- Is the company licensed by the State of Hawaii. Are its
managers licensed?
( Management for a fee for more than one owner requires a
license.)
- How many property managers does the company employ and what
property
management experience does each manager have?
- Are the company's property managers full time residential
property managers?
- What are the company's rent collection and tenant relations
policies?
- What policies and procedures does the company use to avoid the
"mines"?
- How often and when will you receive you monthly operating
statement and rent
disbursement? As collected or at the end of the month?
- Does the company have the proper segregation of
functions(manage/accounting/supervision/audit) to prevent employee
misappropriation of funds?
- Does the company carry a fidelity bond which will protect you
again theft by
company employees?
- How will the company market your rental unit?
- What are the company's policies and procedures for keeping you
informed about
your property?
- Does the company have a written management agreement for you to
review?
Contact management companies and make your comparisons. The quality of
the services provided for your property can mean the success or failure
of your investment.