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|Properly managing rental real estate requires not only knowledge and
attention – it is also a lot of work and requires a significant amount
Some real estate investors need to utilize property managers because they want to reap the benefits of real estate investment, but don't want to personally manage their properties or cannot do so because of other business or employment commitments. Other investors have no choice except to utilize a property manager because the property is at a distance. If you are going to be an arm-chair investor, it is imperative that you use considerable care when selecting the property manager.
Selecting a manager can be just as important as selecting a tenant, perhaps even as important as selecting a property. It can be one of the more important decisions you will make relating to real estate investing because you will essentially be turning control of your property over to the selected manager.
The management contract that will be executed by the owner and the management company is a legally binding contract that lays out the authorities, duties, and responsibilities of each of the two parties and provides the details of the financial aspects of the relationship. Accordingly, investors should know what should be and what should not be in the contract.
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