How to Hire the Best Property Management Company
If you own rental property or are thinking about getting into buy and hold real estate investment, you have to factor in your property management strategy as part of your overall investment plan. The biggest question that will come up is if you are going to manage the property yourself or if you are going to hire a property manager or property management company.
Though it will eat into your overall monthly profits to have someone else manage the property, it is often the best option. It will remove a lot of headaches and necessary duties from your plate, such as collecting rent, screening tenants, handling repairs and dealing with tenants causing trouble. In some cases, a good property management company can actually pay for itself. They can help minimize vacancy rates, attract better tenants and charge higher rent prices if their management makes the property more desirable.
If you are planning to hire a property management company or are looking for someone new to manage your existing rental properties, here are a few tips to consider:
1. Research Their Credibility
The first thing you need to do is conduct research on any property management company you are thinking about hiring. Look up their management history, find out how many properties they currently manage (too few is a red flag, too many could also be a concern if they don’t have enough time to devote to your property and tenants).
2. Interview Them
Remember they are trying to earn your business and you are hiring them to perform a specific function. Make them earn your trust (and your money) and conduct thorough interviews. Find a company or individual you feel comfortable with and who meets your service requirements.
3. Look at Their Technology
The use of property management systems and software, as well as experience with online rental marketing, are absolutely crucial in today’s market. See what kind of technology they are using to automate and streamline certain parts of the process. Find someone who will offer the right combination of technical capabilities with a personal, service-oriented approach to tenant care.
4. Evaluate Their Marketing Abilities
On the heels of #3 above, you need a property management company that excels at marketing. This is what keeps your unit(s) filled with quality tenants. Some property management companies may be great at the day-to-day stuff but terrible at marketing—and vice versa. You want a property manager who can handle everything.
5. Understand Their Process
Take the time to understand the processes used by any property management company you are interviewing. How do they screen tenants? How do they handle repairs? How do they collect rent and pay you? How do they deal with tenant complaints, evictions and other issues that can come up?
6. Evaluate Their Fees
Lastly, you want to take into account how much it will cost you to hire any property management company to oversee your rental property. You don’t want to just select the cheapest option because you may get poor performance. You may not want to spend top dollar if someone’s services don’t seem to warrant such a high price. Find a property manager who checks all your boxes and is affordable. As we said, some good property management companies can actually pay for themselves over time with better service, higher rental prices and lower vacancy rates.
These are a few tips to help you select the right property management company for your rental property. For all the best resources for your real estate investment business, consider joining the PropertyLark home buying network. Fill out our brief questionnaire to see if you qualify!