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Though deeds vary from state to state, all deeds contain basically the same information. The names of the grantor, the words of conveyance, name of the grantee, consideration of statement, property of description, the agendum, the signatures and certifications.

Each section communicates the important information about the nature of the parties or the property or the transaction. Since the deed is the heart of most real estate transactions, it must be scrutinized carefully by both the buyer and there seller, if they’re to protect their interests. The person giving up ownership is the grantor.

Then the person receiving the deed is calling the grantee. The name of those exciting the deed as grantor appears first. These persons must be the owners of the estate conveyed on the order that interest to pass.

The words of conveyance generally determine which promises or warranties the grantor makes to the grantee. When the words “warrant and convey” or “grant and convey” are used, this indicates the grantor promises or warrants the following:

1. That the grantor owns the estate transferred and will pay the grantee for his or her injury if it turns out that the grantee doesn’t receive the state described in the deed.

2. There are no liens, easements, leases, mortgages or other encumbrances which bind the grantee other than those disclosed in the deed.

Deeds of this type are generally called warranty deeds or grant deeds. They are the kind that are most used today. The other major type of deed is called the quitclaim deed. The words of conveyance, for it often included the word “quitclaim.” This deed merely transfers the grantor’s ownership, if any. No promises or warranties are implied in the deed.

If a professorship gave a student a warranty deed to the school building in exchange for $10,000 the student could sue and recover the money if it turned out that the professor did not own the building. If however, a quitclaim deed were given, the student could not recover the money.

Quitclaim deeds are often used to remove “clouds on title.” For example if a divorced man sold property and then died and the buyer feared that the man’s ex-wife might have a dower claim. The buyer could ask the ex-wife to execute a quitclaim deed. She might sign–perhaps in return for $75; but her lawyer would surely advise he to not to exude a warranty deed because she is not to certain that she owns any interest in the property.

Being a landlord can be an agonizing and very rewarding business. I have been a landlord for over 14 years and currently have 55 rental units. I happen to love it, but it is not all roses all the time. Surprisingly, being a landlord is not that tough and you can manage many units without a lot of work, but you have to have your business set up correctly. You can scale your landlord business with or without professional property management. I happen to think property managers are expensive for what they do, but I also understand the tremendous value they can bring. There are many different reasons you should consider using a property manager, but before you make that decision consider these 6 questions:

Where are your properties located?

I have tried long distance management and can tell you it is tough. For it to work, you need great systems in place, which is not easy to set up when you are not on the ground. You will also most likely be relying, at least to some extent, on other people who are not licensed to do what you need them to do. This could include anything from signing a lease, to collecting rent, to fixing a faucet. In my business, I feel it is worth the money to hire property managers to manage all my out of state properties.

How many properties do you have?

You can manage a lot of properties with just a few hours of work a month. I manage all my in state properties myself because it is easy to do and is not worth it to me to pay someone else to do it. In fact, when you are getting started, I would strongly encourage you to manage your own properties. This will help you gain valuable experience, even if you want to eventually turn them over to a manger. To manage multiple properties, you need good systems. This includes a team to do your handy work (basic handyman, plumber, electrician, appliance repair, etc.) Obviously, this is all outsourced so you don’t need employees for this to work. You also need a great leasing agent. A leasing agent is someone who will typically give you advice on what needs to be done to get a unit ready and they will market, show, and negotiate your property. You can have them do the lease signing too, although I would recommend you do that so you get a chance to meet the tenant. Other systems you will need to implement include; rent collection, evictions, move ins and outs, maintenance requests, property improvements, enforcing the lease, transferring utilities, etc. I would consider a manager if I got so many properties that I felt overwhelmed, and in this case I would hand select properties to turn over.

Are you organized?

Here is where you have to be honest with yourself, which is not always easy to do. To manage multiple properties you really do need to be organized. You will have payments coming in for rent and going out for maintenance, mortgages, utilities and more. You will be getting maintenance requests, requests to add or remove people from the lease, request from government agencies, and requests from a slew of others. If you cannot stay on top of this, it is time to hire some professional help.

Do you have a problem property?

These are the worst and you won’t know you bought one until after you own it for a while. I have a few that give me trouble. Although I still manage them myself, those few problem properties take up more of my time than everything else I have combined. This is one time that I would consider a manager for a local property.

Can you afford it?

As I mentioned, property management can be expensive. You should expect to pay ½ or more of the first month’s rent in a leasing fee, 6-10 percent of the gross rent amount in a management fee, and additional costs for maintenance (this is usually marked up). I would try to look at this as if the property can afford it, not you. You really don’t want to get into the habit of feeding your investments, so if there is not enough cash flow from the property, then you might consider managing it yourself until you can get your expenses down or your rents up.

Do you have the time?

Because it only takes a handful of hours a month, my guess is you do have the time. The real question is, do you want to be managing the property with that time? As you get older and your goals change, it might make since to start to step away from your landlord business. Retiring is the obvious example. At that point in your life, you will most likely be deciding between professional management and liquidation.