Property is an investment, and there is nothing worse than watching a property management company waste all of your hard earned money by running your investments into the ground. But any property owner can make a wise decision on a management company by simply following these 6 tips.
1. Figure out if the company is knowledgeable about the local market. It is also essential that the company not only knows what the local sales market looks like, but also the rental market. This is the only way you can rest assured that the advice they are giving you is reliable.
2. Ask about how their process works. Some property management companies do nothing but throw more people at the problem. They will try to convince you that they are the best because they have the most employees. However, you need one person who knows your property inside and out in order to get the best service. Try to get the best of both worlds. A personal property manager that is backed by a large team is a valuable asset for any property owner to have.
3. Request a written evaluation of your property. An evaluation of your rental property should always be free, and it will give you a good idea of how the manager sees your property. When you’ve got several evaluations from different companies, hold them next to each other and see how they stack up. This will give you a good idea about who truly sees and understands all of the advantages your property offers over others.
4. Get some references. Ask to speak to other property owners who are allowing the company to manage their investment. There are some things you will never be able to learn about a company until you are a customer, so the best way to discover these things before actually becoming a customer is to ask those who are already doing business with the company. You will easily be able to see whether one company takes extra steps to be the best.
5. Find out about the collection procedures. On average, it should take no longer for the money from your rents to get from your property manager’s account into your own account. If it takes any longer than that, you should run the other way because something is likely wrong. This is certainly one item to ask the company’s other customers about when you phone their references.
6. Remember that relationships are everything. Part of being in property management means that you know the tenants, so what good is a company that doesn’t strive to form relationships with your tenants? They should do much more than just collect the renter’s check each month. When your tenants are happy, you will spend less time with your property sitting around empty and not making you any money. A good property manager is skilled at forging and maintaining relationships, both with you and with your tenants as well.
Be sure that you meet with representatives from several different property management companies before you settle on one. Take this list of questions along and see how each one of them measures up. By comparing them to each other, you will easily be able to see which company stands out above the rest.