Questions from PM. Is it necessary ?

Question

why would  my property manager ask for my articles of organization, copy of my driver's license, copy of property deed?

Thanks for the help. Not sure if I need to provide.

Nathan Gesner · Answer

You can find the documents yourself but I don't want to spend the time doing it.

Julie Hartman · Answer

@Nathan G. We do not ask for those documents, however we do check public records, etc. Do those not suffice? I am eager to learn something new every day in this business so I am seriously asking this question.

Nathan Gesner · Answer

Because they are professional.

They want to confirm you are who you claim to be and that you have the authority to hire them to manage the property.

Most property managers would not take these steps. A scammer could find an abandoned home, change the locks, pretend to be the owner and rent it out. It's unlikely, but it has happened. More common is when some siblings inherit a home and Sibling A decides to rent the property out without permission from the others and then the property manager gets caught in a legal battle.

It should be comforting to know your property manager is cross-checking your authority; it shows they know what they are doing.

Julie Hartman · Answer

@T. Smith I can't speak for other PM's but we have never requested that type of information from a property owner. We ask for: a copy of the hazard insurance decs page, relevant information about the property, property keys, and a signed management agreement. If the property is already tenant occupied, then we'll gather a bit more information but those other items are the highlights.

I would call other PM companies in your area and ask questions about their process before committing. They should hold a RE license in order to do leasing activities - at least in most states.

John T. · Answer

Let's face it.  More than a few "property managers" have given the profession a bad name.  As a result, some Landlords are a little skittish hiring a property manager.  I don't blame Landlords for exercising due diligence when hiring a new property manager.  After all, a property manager handles the Landlord's property and rent money.  Landlord due diligence should include verification of identity (copy of a valid, unexpired Federal or state government photo identification), criminal records search, credit report, prior employment history, State licensing agency, if any, search, the Better Business Bureau, Internet and social media search, and trade references.

In my State only licensed Real Estate Brokers may act as property managers.  I would be hesitant to hire a property manager who is not licensed by some type of State agency.

A request for your Articles of Organization and the Deed to your property is a little overboard, because these are public documents that can easily be acquired by anyone.

Questions from PM. Is it necessary ?

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