Hiring a property management company is the best way to protect your rental property investment — if you’ve hired a good property management company. Property owners’ needs vary, and there’s no one-size-fits-all solution. However, all good property managers have the basics covered. Make sure yours does, too. A good property management company handles marketing the property, leasing, rent collection, property inspection, tenant screening, maintenance issues, as well as reports and financial statements.
When choosing a property management company, look for the following characteristics.
Trustworthiness and Transparency — Were you referred to your property management company by a colleague or someone you know? If so, that’s a good start, but there’s still homework. How is the online reputation of the prospective company? How do they rank with the Better Business Bureau? To what professional organizations do they belong, groups such as the National Association of Residential Property Managers? The fee structure needs to be clearly and simply stated with no hidden costs. Consider your gut feeling, too. Though not quantifiable, trusting one’s instincts is a good bet.
Experience — A good property manager needs experience, just as a good cook needs to stop reading cookbooks and put some time in the kitchen. Along with that experience comes recommendations and testimonials. Ask for them. Property management can be a tough field. Find out how the property management company has handled evictions, tenant disputes, and lawsuits.
Fairness in Fees — Make sure the fees are reasonable and you understand how they are calculated. Flat fee or a percentage of rental income? Situations that may incur special charges, legal costs for an eviction for example, also need to be clearly and simply stated. A good property manager will list all their fees. Ask if they have done so.
Accountability — A good property management company will designate a contact person for clients. Will you be working with an individual or a team? How easy is it connect with your property manager? Are they available 24/7? Are there any guarantees of the quality of their work, how fast spaces are rented, or what is the renewal rate among tenants?
A Solid Tenant Screening Process — The best way to find high quality tenants is a thorough tenant screening process. Not talking rocket science here, yet so many Landlords and property management companies skimp on this. At minimum, the process must include credit checks, employment status and history, income verification, history of rent payments, and eviction reports. Make sure the rental applications are compliant with all local and state laws. Are they easily available online? If not, you can bet there are other holes in the company’s tenant screening process.
Contact Place Tenants to learn how we can protect your rental property investment and grow its returns. We look forward to preparing a complimentary property management analysis for you. Call 800-886-1193 or email [email protected].
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