Deciding to have a property management company professionally manage your investment is an excellent idea that can save you money and increase your return. Choosing the right management company will have a huge impact on your success as a landlord and an investor, so make sure you know what to look for when you’re interviewing property managers.
Reputation and Results
Check out a property management company’s reputation before you begin making phone calls and setting up interviews. Go online to see what their current and former customers have to say about them. Talk to people in the real estate and property management business. Find out if the company belongs to professional associations such as NARPM – the National Association of Residential Property Managers. Look for success stories. You want to see results, and if a property management company can show you that they maintain a vacancy rate that’s lower than average or help to achieve rents that are above market, you’ll want to talk to that company.
Procedures and Processes
When you do talk to management companies, ask about the procedures and processes they have in place for the successful management of your investment home. They should be able to explain how they prepare your house for the market, advertise your listing and schedule showings. You’ll want to know how they screen tenants, what they do with security deposits and how maintenance requests are handled. Ask of they conduct regular inspections and how they collect rent that’s overdue. You’ll need to know that the property management company you choose can be trusted to enforce the lease and protect the condition and value of your property. It’s also important that their operations are compliant with local, state and federal laws. They should be able to explain fair housing laws to you as well as the eviction process. Ask them to tell you how you can be sure a tenant receives the security deposit refund within the legal timeframe.
Communication and Technology
Communication between a property owner and a property manager is critical. You also want to be sure they are communicating well with current tenants, prospective tenants, and vendors. Make sure they are utilizing the latest technology, which can help you stay up to date on the condition of your property. Good management companies will provide an online portal where you can check your statements, approve repair invoices and see how the home is performing. Tenants should also be able to access their own online accounts to pay bills, request maintenance work and renew their leases.
You hire a property manager to take care of one of your greatest assets. Make sure you do a thorough screening process so you choose the right company for you and your home. If you have any questions about choosing a property management company, please contact us.