Choosing a Property Management Company
Choosing a property management company can seem like a daunting task, but one that ultimately pays off in the long run. Not only does the right property management company ensure that your property investment is well-cared for, the best property managers will have a significant impact on your return on investment.
Property managers offer specific expertise that ensures quality tenants are matched to your property for regular rental income, but also ensures your property is maintained in optimal condition to keep your outgoing costs manageable today and in the future. So, when it comes to choosing a property management company, how can you make sure to find the right company for you and your property? Let’s have a closer looks.
Research
Any time you are looking for a suitable professional to manage one of your investments, you absolutely must do your homework. Careful research and planning in the early stages will definitely save you headaches in the future. Start by seeking referrals from friends and colleagues, conducting online searches, and even reviewing public information about potential property management firms.
Once you have a shortlist of property management companies, look at their online reviews or contact firms to ask for references. Likewise, the Better Business Bureau and online consumer reports may offer important information that can help you confirm that the property management firm is reputable and experienced. Never rely on a professional’s “word” when hiring a property manager – you want evidence that they deliver their services effectively and with integrity.
Interview
After the research phase of your search, you’ll ideally have two or three potential property management candidates. This doesn’t mean your “research” is done – you should take some time to interview your candidates and gather some very critical information. You’ll want to ask about their fees, liability insurance, cancellation agreements, property maintenance and inspections, financial reporting, tenant screening and selection processes, and how many properties they currently manage.
During this process, you’ll also get a sense of their communication style and whether they communicate with you respectfully and efficiently. After all, you want to know they are available for you as you need them – particularly since you trust your property manager with the long-term health of your investment.
Negotiations
Finally, when you have selected the best property manager, make sure you clearly review your expectations and the services you require. During this negotiation phase, you’ll set out the terms of your property management contract which will be different for different properties. As such, you’ll want to take some time to identify all the services you require from tenant screening and selection to lease administration and rent collection, property maintenance, and reporting. When you are satisfied that you’ll receive the services your require at a fair price, you’ll have found the right property management company.