Owning and operating a rental property whatsoever can be daunting for some people. Not only does it require a lot of time and energy, but some of the nitty-gritty that goes into it can be not very interesting.
With so many companies out there promising to leverage the best of the best for you, it’s easy to get overwhelmed. If you’ve been divided about considering hiring a rental property, here are a few things that will help you choose your next property management company.
Services Offered by Property Management Firms
Before we can get to the recipe for choosing the right management firm for you, here are a few benefits to using one. Repair and maintenance -one of the reasons to hire a management firm is to be able to outsource maintenance issues.
When a tenant has an issue in their apartment, a property management company will have one of their service providers see that your residents’ units are serviced and in good shape.
These firms deal with the pricing and collection of the rent for your property(s). They decide how to deal with late payments and bounced checks.
They Manage Paperwork
This includes but is not limited to handling taxes, signing, renewing, and drafting leases on behalf of owners.
They Understand the Market
They have already done market research and know how to price the rentals. Chances are they can also advise you during renovations.
If you’re looking for a Nashville property manager, here is a comprehensive checklist.
Having good communication is one of the vital skills to look out for in a property management company. How well do they communicate with you and your tenants? They’ll be working closely with the tenants; whatever needs they have should be attended to with utmost urgency.
Renters not only tend to prioritize rental units that offer streamlined communication, whether virtual or face-to-face, but great communication leads to long-term relationships.
Ensure you also have a specified communication channel between you and the company. Being able to reach them regarding monthly reports or any other issues is what differentiates a good company from a great one.
How Good Is Their Marketing
When you hire a property management company, a proven record that shows a high track record for filling vacancies is essential.
What are the marketing methods they employ? How quickly do they fill up their vacant properties? They should be able to get you the best market value for your property in a short amount of time to avoid you hemorrhaging money.
Don’t be afraid to ask about the strategies that they implement.
Even after your property has been filled, you want to be dealing with good tenants.
Experienced property management companies have a strong system for screening potentially problematic tenants.
Whether that’s tenants who tend not to pay their bills on time or disorderliness, weeding out such tenants will help keep your home’s value high. Ask about the company’s vetting process and ensure it aligns with what you’re looking for.
Property Management Fees
Before signing any contracts, ensure that you have looked at other companies in your area and compared them to market value.
How do their services match up to their competitors? Are they using the latest technologies? Do they offer additional services at an extra cost? What are their policies for dealing with both you and the residents?
If they charge a slightly higher price but go above and beyond for their clients, the slight charges may be worth it.
While the decision is up to you at the end of the day, ask about extra charges for inspections, maintenance, and repair costs and chargebacks for office supplies. Also, take a look at the termination clause. Should things go awry down the road, you wouldn’t want to be left with huge bills.
Reviews and Reputation
When looking for a property management firm, always be sure to do an audit of its presence, both online and offline. Start with online sites such as Yelp and Google moving onto their social media sites if they have any.
Furthermore, look at their certifications and trade association membership, be keen to look out for any serious complaints lodged against the company, and check if you spot any patterns with negative reviews.
At times a scorned tenant might be writing the reviews. You can notch up by speaking to other clients with the same property style and tenants using the same management to see if they are happy with the company’s management style and service.
Needless to say, before you start working with a management firm, ensure they are properly licensed. Ask for the documentation, i.e., broker’s license and other professional accreditations that let you know they are well-versed with the market and laws.
Most professional firms will also have insurance coverage that will cover them plus your business in case of any accidents.
Working with a property management company offers a lot of pros and can be a stepping stone to helping you build an incredible real estate portfolio. And as such, knowing the difference between a good company and a great one will help you get a significant Return on Investment.