Qualities of a Great Property Manager
Whether in the residential or commercial realm, property management is a vital service for many homeowners looking to rent. At Froerer, our property management service has been rated the tops in Utah for years, and we have over 100 years of providing these services at a high level.
What are some of the qualities that go into making a great property manager? There are several that most people identify as important when they consider a manager – let’s look at a few.
Property managers will regularly meet confrontation without warning, and one with a cool head and a positive attitude will have a higher chance of success. A good manager needs to be able to face even tough decisions with a smile and a good attitude – those who resort to negativity will quickly find unhappy tenants. A manager needs to use generally positive terms while avoiding sounding disingenuous or sarcastic, which also won’t play well for tenants.
Attention to detail is vital for a good manager, in several areas. A manager needs to be a great listener and cater to the needs of tenants, and also needs to be good at spotting signs of trouble or issues that need to be handled before they become more serious. In addition, the property manager needs to be attentive to the needs of both the tenant and the homeowner.
It’s always easier to work with someone you can relate to, right? A property manager will deal with items that relate to the everyday lives of tenants and homeowners alike, and someone they can empathize with will go a long way.
When problems arise with a home, the property manager is usually the first person who will be dealing with them. These will often be stressful situations, and the manager needs to be able to respond calmly and rationally. The manager’s job is to calm the worries of tenants or homeowners, not contribute to them.
For more on what makes a great property manager, or to find out about our services in residential or commercial property management, speak to the pros at Froerer today.
Learning About Real Estate Insurance
For anyone involved at any significant level of real estate investing, insurance will be an important factor. While this is a step of the process that’s expensive and can seem like a hassle, it’s a vital part of succeeding with your investments.
At Froerer, we’re here to help with any and all insurance questions. Here’s a primer on the basic types of insurance you can get, liability coverage, and penalties you may incur in certain situations.
Types of Insurance
When it comes to real estate, there are two primary kinds of insurance: Actual cash value policies (ACV) or replacement cost policies.
ACV situations are common in situations where a home requires some fixups or maintenance – in fact, in some of these scenarios, the ACV will be your only option. In these cases, the insurance company will cover the amount you paid for the property, minus the value of the land it’s on. All ACV policies will cover small losses, though their additional coverages will vary. For buildings that may undergo major structural damage, ACV insurance can be pretty limited.
A replacement cost policy, on the other hand, is preferable in most cases. It comes with more comprehensive coverage in general, including coverage for the full cost of any covered loss minus your deductible amount. To qualify for a replacement cost policy, the property will have to be in good condition.
With most policies, the possibility of what’s called a coinsurance penalty will exist. This is a penalty if you come in more than 20 percent under market costs – say your home will cost $200,000 to rebuild, and you’re insured for under 80 percent of this, or under $160,000. Any claim you make in this situation will be paid out at that same ratio, not at a different one. Ensure you’re up to speed on the value of your home is being replaced at in these kinds of scenarios.
Most standard limits for liability coverage are at benchmarks of $300,000, $500,000 and $1,000,000. In most cases, we advise shooting for the higher coverages – it usually doesn’t cost much more to get them, and they provide much more value. Also, for rental situations, we recommend that all renters be required to carry renter’s insurance so that your liability coverage isn’t the only one on the hook.
For more information on real estate insurance, or to find out about our residential or commercial property management services, contact the pros at Froerer today.