Are you looking to hire a property management company?
That’s a smart move. As one of the over 8 million independent landlords in the United States, you’re certainly enjoying the perks. A steady rental income every month and the ability to be your own boss are the icings on the cake.
However, you also know that managing your properties, especially if you’ve got a couple of units or don’t live nearby, can be a tough challenge. This is probably why you’re looking to bring in a property management company.
But how do you find the right property manager? There are several companies to choose from, so it’s important that you know the questions to ask.
Read on to learn what to ask.
1. What Property Management Services Do You Offer?
If you’re not familiar with property management services, it’s easy to think that all companies offer the same range of services. This is not the case.
Broadly speaking, any property manager can lease your property and collect the money on your behalf. However, this isn’t all that goes into property management. There are services like marketing, tenant screening, tenant dispute resolution, routine property maintenance, and repairs that are key to the management of a property.
You want to hire a management company that offers the full spectrum of property management services.
2. How Many Properties Do You Manage?
This question seeks to help you establish whether a property manager is experienced enough. A company that manages hundreds of buildings is obviously more experienced than one that handles a few properties.
But then, managing several properties can also be a disadvantage. If the company doesn’t have enough resources to oversee those properties, there’s a chance your property won’t get the attention it deserves.
As such, you need to establish the number of property management agents on the company’s payroll. Ultimately, you should be satisfied that it’s capable of handling the vast number of properties under its management.
3. Do You Invest in Real Estate?
It’s not a must that a property management company invests in real estate. However, a company that’s also a real estate investor likely has a better understanding of the local and national real estate market. They’re in a better position to make decisions that will benefit you as a real estate investor/landlord.
For example, a real estate investor stays abreast of trends in the rental real estate market. They can tell when it’s time to increase or decrease rental prices.
4. What Are Your Terms and Conditions?
Property management companies charge for their services, but the fees vary. Some will also insist on entering into a contract that can be renewed upon expiry. Others will offer you their services as long as you pay on a month-to-month basis.
Asking about terms and conditions enables you to have an understanding of what you’re getting into.
Hire the Right Property Management Company
A property management company with take the load off your hands. Your job will only be to wait for the rental income to hit your account. But then you have to find the right property management company. With this guide, you now know how to do that.
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