Learn the warning signs of a fraudulent property management company. In Newport Beach, CA there are ways that you can protect yourself from being taken advantage of by a scam artist posing as a legitimate property manager.
Scams….They seem to be everywhere these days. So if you’re in the market for a property management company in Newport Beach, CA, you need to be aware of the potential scams and problems. There are some great property management companies out there…but it’s important to know what you’re looking for and what pitfalls to avoid.
We’ll outline a few of these so you can find the right property management company for your needs.
Scams Hiring a Property Management Company in Newport Beach, CA
Property managers are essentially easy to scam because most people don’t know where to start looking. Unfortunately, 80% of landlords will hire their property management company solely based on recommendations they get from other people. This is a huge mistake and can lead to financial ruin.
They need to be able to “shop” the industry and find a company that’s right for them, not just one their friends use. Even if they do this, there are still some very common scams all companies should keep an eye out for. Here are five common frauds to watch out for when it comes to property management scams.
The Unlicensed Company
You should never hire a property manager in Newport Beach, CA that is not licensed. This seems like common sense, but you’d be surprised how many scams are out there. Most state governments do require property managers to be licensed. In fact, only six states in the US do not require licensing for property management activities.
The first requirement is to have a property management license in California. The regulation (10131-b) clearly states that buying, selling, or leasing property without a license, is unlawful.
However, entry-level employees work under the supervision of someone with either a real estate broker’s license or a property manager’s license. Most states do not require a license for entry-level activities performed under supervision by a leasing agent. Make sure who is supervising your property – an hourly employee or a licensed property manager.
Overcharging & Unnecessary Repairs
Property management companies scam property owners and tenants by overcharging for services and billing for unnecessary property repairs. Property managers typically charge a flat fee to manage property, but they often bill property owners or tenants additionally when there is no need to do so.
If you feel that your well-kept property is suddenly in need of multiple, expensive repairs, your property management company might be overcharging your property owner’s association.
Property managers typically charge a flat fee to manage property, but they often bill property owners or tenants additionally when there is no need to
Charging for Non-existent Work
You should always do your research and find out as much as you can about the property management company before signing any contract. It’s also important to steer clear of companies that require an upfront payment or charge an excessive amount for their services. The more you know, the less likely you will be subject to any scams!
The No-Show Appointment
One of the most common scams is when you make an appointment to meet with a company and they either don’t show up or are “late”. This is often done during the initial meeting to give them time to do background checks on you…in case they find something out about you that would make you an unsuitable client. This doesn’t necessarily cost you money, but it does waste your time.
This is where they agree to manage your property (after checking around for the best one) and then “forget” to send you important documents like rental agreements, etc. They hold on to these documents until you pay them…and if you don’t it can delay your ability to collect rent (and potentially put other properties in jeopardy).
Protect Yourself and Your Property
You’ve worked hard to get where you are and we want to help protect your investments. That’s why True Property Managers is here for you when it comes time to hire a property management company in Newport Beach, CA. We take pride in our work and make sure that every tenant, resident, or homeowner feels like they have someone on their side who cares about them and wants the best for them. Contact us today at 866-957-6677 so we can discuss how we can manage your investment!