May 19, 2017
Contributed by Century 21 Everest
If you’re new in the real estate business and thinking of investing in a rental property, choosing a reputable property manager should be one of your top priorities. To ensure that, familiarize yourself with these tips below. They will help you pick the best company in your locality.
10 of the Best Tips for Choosing a Property Management Company
1. Start by Interviewing Several Property Managers
As a property owner, you have to interview your tenants to ensure that you won’t have any issues later on. You should also practice this when hiring a property manager. This would allow you to compare and find out which among them is the best. Aside from that, by interviewing a couple of property managers, you can pinpoint who among them is really capable of doing the job. You’ll have the ability to determine who among them has the knowledge and experience when it comes to handling a rental property.
2. Does He Have a License and Certification?
In most places, it is required to have a broker’s license and a property manager should have a certification coming from trade organizations. These organizations provide a certification after the completion of their training program. Keep in mind, a property manager that has spent some time to complete this training can be a good indication that he will be dedicated to his job.
3. Ask for References
As you interview the property manager it’s important that you ask about their management experience and references from owners of previous buildings they managed. Likewise, to ensure that they are really qualified, it’s important that you check their portfolio as well. Remember, this company would be in charge of your investment, and so, you have to ensure that they can handle the responsibility quite well.
4. Are Their Property Management Fees Reasonable?
Finding a reputable and affordable company can be tough. Ask them about their management fees. This would give you an idea of how much the monthly fee would be. Some companies offer a flat rate, while others base it on the rent amount. Additionally, there are companies that offer 3 levels of pricing– this includes the standard plan, lease only plan, and a premium plan. Pick a company that bases their management fees on the percentage of collected rents. This would motivate your property manager to ensure that there aren’t any vacancies, because this is how they’ll earn their money.
5. Check the Management Agreements
As a property owner, you should check the management agreement as this will give you an idea of what your responsibilities are. Review the services offered, duties of the property owner, extra fees and charges, and reasons for cancellation. You have to review these carefully and only agree with the terms of the contract if you find it justified.
6. How Do They Handle Property Inspections
It’s important to ask your property manager how many times a year your property will be formally inspected. A reliable manager would give you a report after each inspection to validate that they have visited the place. Ideally, property inspections should be done twice a year, and nothing more. You don’t want your tenants to complain about this.
7. A Reputable Property Manager Screens His Tenants
A lot of property owners think that this is fairly simple and it’s fine if they neglect it. What they fail to realize is that, there’s always a possibility that the tenant will provide false information. A rental manger’s job is to authenticate and verify the information provided by the prospective tenant. With the help of a professional, you’ll be able to ensure that there won’t be any issues regarding false information later on.
8. They Should Be Able to Market Your Property
It’s important that the property manager you’re going to hire has experience in various ways on how to market properties at very affordable prices. It’s one of the reasons why you hired them in the first place. It would cost you an arm and leg to advertise your property, however, with the help of an experienced professional, the expenses would be less.
9. A Maintenance Crew Is a Must
One of the chief roles of a property management company is to preserve and increase the value of properties. This can be done through regular maintenance and inspection. If your rental management company has a maintenance crew, you’ll be able to save money from this provision, as they will be able to adjust the price, because you are already using their service.
10. Experience Is Very Important
Make sure that the property manager you are going to hire is already experienced. As much as possible, look for one that has already handled a number of units before yours. This would give you the confidence that he or she really knows what they are doing.
It takes a lot of patience, experience, and determination to become a reliable property manager. Not everyone is ready for the responsibility it entails. Still, there are a lot who claim that they are. That’s why as a property owner, it is your job to do your research, and ensure that the property manager you’re going to hire will be able to help you out with your rental investment.