Nov 27, 2020
If you are looking to save some time and money with your gardening, then these tips might be Hiring a property management company helps take care of a lot of the day to day management tasks that you don’t have time for. The time it saves can be used for more important things like expansion and upgrades.
There are some truly great property management companies out there. And it’s not hard to recognise them. But of course, there are also some bad apples. So how can you tell which is which? That’s where this guide will help.
Perform an online background check on each potential provider
Hiring the right property management company can be a daunting process, but with the right information, you can ensure that you hire a quality company to manage your property.
Listings of property management companies can be found online. The Internet has everything that you need to know. You can find the contact and address details of many property management companies.
Check their qualifications
When trying to decide on who to hire for your property management, one thing that you may not think about is their qualifications. This can seem quite obvious when it comes to doctors, lawyers and even mechanics, but many don’t pay attention to the qualifications of a prospective property management company.
It is better if you check their background and qualifications before hiring them. You have to verify their quality and experience, so that your properties will be managed well. These important considerations should help you in choosing the best property management company for your investment properties.
Consider companies with proven record of success
Property management is a business that requires experience, skill and tact to get results. Thus, before choosing a property management company to take over the day-to-day management of your portfolio, it is important you find one which has a good track record not just with vacancy rates but also maintenance. Hiring a rental property management company with low vacancy rates can help increase revenue.
Examine the level of transparency
The best property management companies will exhibit a certain level of transparency within their business structure. What does this mean exactly? It means the best property management companies are open, honest and will make customers a priority in every way.
If you choose an organization that doesn’t provide the level of service you need or fails to communicate effectively, it can be devastating for both you and your tenants. However, if you choose a property management company that has a refreshing level of transparency, easy-to-understand process, and 24/7 onsite support, it can be one of the best decisions you make for your rental business.
Ensure each potential company passes your screening process
Every detail counts when deciding which property management company to use. Companies can and will go out of business, leaving you and your tenants high-and-dry. You need to arm yourself with information to prevent this happening to you.
To do this, you'll have to go through a screening process to make sure each potential company passes your standards. A screening process helps you avoid selecting unqualified candidates.
Have a face-to-face meeting
It's not a decision that should be made lightly. Set up a meeting with the management company you're considering.
You need to trust your property manager or else you’ll spend all of your time wondering if they are handling things correctly. You need to feel comfortable with them, which basically means you need to like them and trust them. It means having a face-to-face meeting – no Skype calls or emails allowed! You need to feel confident in their knowledge of the industry, especially if this is a new industry for you.
Examine their fee structure
Thoroughly examine the property management fees of the property management company you are considering. There will be different fees involved, and these can vary on a wide range. Your final choice should not be based on just one factor. The two most important things to look at are the overall cost of service and how that translates into tenant satisfaction.
Have a lawyer look over the management agreement terms
You should have a lawyer look over your management agreement. It can help you identify possible management company issues that may be costly in the future.
Don’t get so wrapped up in how good they sound that you forget to ask about their profit margins and read the fine print. Before you hire a property management company, see if they can help you with these areas:
- Current rent collections
- Accounts receivables collections
- Pest control
- 24-hour emergency maintenance
- Upkeep and repair
- Fire protection violations
- Reaching out to delinquent tenants
- Lawn care
- Landlord-tenant disputes
- Conflicts with neighbours
- Utility problems
You’ll want to get an attorney involved to handle the legal aspects of the agreement. An attorney will be able to help protect your best interests.
Finding the right property management company can be a daunting task. While the online world has made it much easier to find candidates in your area and narrow down the field, you have to be careful when evaluating them. Not all of them are going to be made the same.
Due diligence is needed and you will need to look at different areas for different providers. As with anything in life, if it sounds too good to be true, it probably is. But there are also times that things are not what they seem. If you want your business to thrive you need to put your trust into someone. So having the above checklist can help your final decision process and prevent you from making a mistake by hiring the wrong company.