Choosing a property management service for your real estate can be a daunting task. There are many things to consider when making this decision and it’s important to take your time in order to make sure you get it right. In this article, we will discuss 10 key factors that you should keep in mind before choosing a property manager.
We’ll share with you important things to consider like whether or not your property manager has a strong communication channel, whether they have experience with a rental property like yours, and what type of management agreement is required.
1. Does Your Property Manager Have Experience with Your Type of Property and Geographic Region?
This is a key question to ask because the property management company’s experience in your specific area of real estate will be critical. For example, if you have a property with retail stores on-site, then it would make sense for you to use a property management company that has professional experience and knowledge of dealing specifically with this type of asset.
Experience and a portfolio in the industry is a good base for vetting the ability of your prospect. The property management company you’re looking for should be able to give value-for-money and offer excellent service that will make your clients happy too!
It can offer added convenience to choose a property management company that is local to your area, but it isn’t absolutely necessary. Many property management companies work with local landlords and those all across the country. Whether you decide to hire someone locally, or you choose a professional who has experience in multiple parts of the country, be sure they have a strong knowledge of your local market.
2. The Property Management Company Track Record for Preserving Investor Equity
It’s important to know that the property management company you choose will be responsible for maintaining, marketing, and managing your asset. The goal is to generate a return on investment for your real estate while ensuring that it doesn’t depreciate in value over time – this means preserving investor equity.
One way to understand how well the property management service can do this is by looking at their track record. Some management companies have a reputation for being good stewards of investor equity while others do not, so it’s important to find out before making your decision about which company will be managing your property. This answer can help determine if you should consider someone else or give the opportunity to them.
3. Screening Tenants, Collecting Rents, and Maintenance of Properties
If you can, try to Search For an all-in-one package. The property management company you choose will need to screen tenants, collect rent from the tenant and maintain the properties that they are responsible for. It’s important to know what their process is before making a decision because it can vary depending on which property manager you go with. If one of them only does screening and collecting rent, then this would not be suitable for an owner who also needs maintenance and marketing. Reviewing how the company can handle your particular property type will help you make a better decision.
Here are some questions to ask your potential property management companies as you go through your interviews:
- What does the interview process look like for screening tenants?
- What marketing services do you provide for your clients?
- What maintenance do you provide for the rental properties?
4. Handling of Tenant Disputes, Requests, and Legal Issues
Tenant disputes and legal issues can be time-consuming. It’s important to know how the property management company you are considering handles these types of situations as this could have a major impact on your level of involvement or lack thereof in managing your properties. After all, the point of hiring a property manager is to take some of the work off of you as the property owner.
You will need to have a good property management company that can handle all types of rental issues and tenant requests for you. Otherwise, they become your responsibility and will end up costing you more time.
5. Check for Restrictions on Where You Can Live
If you own rental property and also live in one of the properties that they manage, then there may be restrictions on where you can live. It’s important to check for restrictions before choosing a company as it can limit where you can live and still be their client.
6. Company Fees Agreement: One-Time Fee or Monthly Payments?
Fee structures vary depending on the property management company. Property managers’ fees should be reasonable to enhance quality service and good margins for your business. You should investigate the prices of these services from different property management companies in order to find one that comfortably falls within your financial plan. Some property managers charge the landlord a percentage of the rental property it’s managing, while others may charge a monthly fee. Some property managers may even ask you what kind of fee agreement makes sense for your needs and may give discounts accordingly if you commit to a long-term relationship with them by signing an annual contract or even paying upfront beforehand.
If your property manager requires ongoing fees, they will need to demonstrate how they will create a return on investment for your rental properties. It’s important to know what the company fees are going towards before signing any management agreement and committing to it. This is an important part in choosing the right company.
7. Choose a Property Management Company with a Good Communication Channel
Communication is key when it comes to property management and the property management company you choose should have a communication channel that is convenient for you, so that can ask questions and get answers in a timely manner. The company may offer email, phone calls, or even Zoom chat. Whatever is preferred by the investor will work as long as they are available to speak with a representative or the owner of the company within a reasonable time frame in order to answer questions and concerns.
8. Online Presence is Important
The right property management company should have a good website with up-to-date information about the property management company and its services, contact details, office hours, and testimonials from clients who are happy with their service.
A good online presence is a key to any company’s success. It can serve as a great indicator of how they will perform in the future and their reputation, and it also provides an opportunity for them to reach out directly to their customers or potential clients. For example, if you’re looking for tenant or landlord reviews that are not influenced by advertising dollars – this is where you’ll find them. This could also be a good indication of how well their customer relations are.
9. Extent of Management Services Being Provided
The sole reason for hiring a property manager to manage your real estate investments is to get peace of mind and to save time for property owners. A property manager that offers multiple services related to property ownership like insurance, repairs, and maintenance will be very beneficial in the long run because it can help owners save time managing all these aspects separately.
A value-packed agency can help your business a great stride by eliminating the need to deal with other companies. This further enhances efficiency and helps you save time in managing agencies.
10. Regulatory Requirements
In order to operate a legal business, all of the entities within it must be authorized by government agencies. When you work with an illegitimate company, their illegal actions may carry over into your hands and could hurt future prospects for success in this industry.
You should always make sure that any companies or people you hire to assist with running your enterprise have been approved by proper licensing authorities before dealing with them so as not to jeopardize operations down the line.
Summing it Up
The search for a property management company may seem overwhelming at first, but it doesn’t have to be. Take some time to review all these things before making your decision. It will affect the way your commercial or residential properties are handled and may make a significant difference in your financial situation. It could also determine how much work is required on your end when deciding which service level package to sign up for, as well as what restrictions may be in place. Once you’ve narrowed down this list of criteria and chosen a property manager with whom you’re comfortable working, make sure both parties are clear about expectations from the beginning so that there won’t be any surprises later on.
Whether you are purchasing, selling, leasing, or in need of rental management services, we can help! Connect with us today to start the discussion.