Advice for Hiring a Property Management Company
Hiring a property manager is the absolute best way to keep the daily tasks of running your real estate investment under control. Although it is quite possible to manage things on your own, there are many excellent reasons to consider recruiting the help of a professional, most notably if you do not possess the important skills required to deal with those responsibilities yourself.
With that said, finding the right property manager can be a difficult task, especially if you are not totally sure what to look for. This blog post will help to outline the types of questions you should ask when searching for a properly qualified management company to do the job.
By talking with realtors and other property managers in your area, you can discover which property management companies they use, and which they may recommend. Ask them directly which companies they have utilized and what their experience has been. Who did a great job? Who cut some corners? Always remember that referrals can be very biased and that they should always come from more than one source.
How to Choose the Right Property Manager
It is crucial to consider several property management companies when deciding on who to go with. If you elect to go with the very first one that you come across, then you may very well regret it in the immediate future. You need to do proper research, and properly audit every potential candidate, which means you will need a list of possible candidates for the position.
The most real-world way to approach this is by copying down which services you will need covered by the property management company, and see if the one you are researching offers what you will require. Then you will have to determine which firm will give you the best service for the lowest amount of commission.
Below you’ll find some of the important services property management companies will offer that you should definitely include in your list:
- Market Your Vacancies: A great management firm will be aggressive in their advertisements. You don’t want your property staying vacant for too long.
- Screen Your Tenants: This is really important. Make sure that they are using background checks. A simple background check can greatly reduce loss.
- Collecting Your Rents: Any reputable firm will have a process in place. Make certain that it sounds like a good one.
- Maintain Your Units: You always want to make totally sure that they will keep up with the regular maintenance and to find out well beforehand of their processes.
- Handle Your Emergencies: If they don’t have a proper system in place for these types of emergencies, why would you pay them the money in the first place?
- Oversee Your Accounting: It is always good to find out exactly what kind of accounting services they will offer. Remember that really great accounting means less work for you.
- Fee Structure: Finding a property manager for an appropriate fee shouldn’t be too difficult. Various firms may have different fee structures.
- Liability Insurance: This one is really important. You always want to be covered in this business.