FrontDoor.com

These days, investors are flooding buyer's markets throughout the country, honing in on properties in cities with healthy economies. If you purchase a rental home in a different state, you may find it quite difficult to adequately manage it yourself.

That's why you'll need to hire a responsible, trustworthy property manager who will not only collect rent and other fees on your behalf, but also handle day-to-day maintenance and respond to your renters' needs. Hire a crook and he/she could easily steal the tenant's security deposit, your rent and even the appliances from your home. Whether you go with a local independent contractor or a regional management company, follow these steps to find the right property manager for you.

Step 1: Get referrals.

The best way to find a reputable property manager is by referral. Who sold you your home? Does your real estate agent know any good property managers? Do you have friends with investments in the same area?

Next, check the state's Real Estate Commission and the Better Business Bureau to make sure your prospective property manager is licensed and has no complaints against them.

Once you have a short list of people you're considering, interview each one.

Step 2: Note the first impression.

If possible, meet each candidate in person. Is the manager put together and well-spoken? Put yourself in a prospective tenant's place. Would you want to rent a home from this person?

Step 3: Find out how the person handles advertising and vacancies.

Ask these questions:

• Where does the property manager advertise vacant homes?
• What kind of signs do they put in front of the property?
• Do they advertise in newspapers, websites, at nearby colleges?
• How many vacancies does each property manager have?
• What's the average length of time it takes to place a tenant?
• What kind of vacancies does the property manager have? For example, if you have a 2 bedroom condo and the manager only specializes in single-family homes, they may not know how to target the right demographic to search for tenants.

If the property manager has a website, take a careful look.

• Are you impressed with its look and features?
• As a prospective tenant, is it easy to find the rentals list?
• As an owner, are you able to login online to view your account and statements?