For June, Carod Properties has brought to you a series of articles advising areas of property investment where owners need to stay involved. June is ending and for the last segment in the series we would like to conclude with a crucial factor in the property investing equation. Whether you are a businessman or a casual investor, there are areas in your business or personal life where you know the benefits and absolute prerequisite of knowing whom you’re dealing with before entering into a relationship. The same holds true for property investment.
Background checks are just as essential to the success of your investment as choosing the best property. Very quickly, once the papers are signed, you will realize how many people will have their hands in the pot…your pot. Contractors, sub-contractors, inspectors, maintenance personnel and even your property management company. All should be subject to review of who they are, the verifiable services they provide, and their policies and procedures. None of these should solely be based on word-of-mouth. Nor, should their references take the place of warrantees, guarantees, and bonding that assure that you get what and whom you paid for.
We’ve said it once and we’ll probably say it a million times more, “Do your research!” If you hire someone to do the research for you, that you might be a little more hands-off, it is vital that you at least be emphatic in representing to them the areas in which due diligence should be unwavering. The questions you should be asking or able to verify about almost anyone involved in the realization and success of your property, are:
- Do they have references?
- Are they bonded?
- Do they provide guarantees/warrantees for their work?
- Criminal background?
- Do they have reviews for work performed?
- Is there any legal action filed, pending, or ruled against them?
The last is of utmost importance. No matter how many glowing recommendations and reviews they have, that is not the entire story. Sure, there may be nuisance lawsuits, but if they have had a genuine, legitimate lawsuit from enough dissatisfied customers/clients, the chance of you having an unfavorable relationship increases. This is not to say they are ruled out, but you should hold the magnifying glass that much closer.
We’ve hopefully shown you in this series that there is much involved in property investment, but not too much. If you have the desire, the capital, and all of the necessary information it can be the means by which you can secure your financial future. Carod Properties wants that for you and all of our clients. Our jobs don’t stop with the handing over of keys. We want do all within our power and vast knowledge to make sure you protect your investment. We’re here to help!
