The Housing Chronicles Blog: The perils of hiring a property manager

Thursday, April 17, 2008

The perils of hiring a property manager

My apologies for the somewhat sparse blogging this week, but I've been very distracted with a small income property I have here in Southern California. Although one of my tenants and my management company have long been at odds, it wasn't until recently that I saw firsthand the enormous problems that can arise when you put your trust into a property management company that's interested in the fees but not so interested in earning it properly.

I only mention this because I think this is a timely story in a market in which people have (a) bought properties to rent out in order to build equity (over time, of course); and (b) are intending to sit on homes now under-water and rent them out until the market rebounds. In fact, hiring the wrong management company can cause financial and legal disasters, so look for a future post (or article) on what to look for when hiring such a company.

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