One of the biggest concerns of real estate investors is to deal with their tenants. Managing one’s tenants and trying to expand your investment business to other properties simultaneously can be an uphill task. This is where property management companies come into play.
If you are earning enough profit to afford a property management company, then you should go for it. For many newly made landlords, hiring a property management firm can be very daunting. This article is aimed at those real estate investors who are looking for a property management company but do not know how to.
The following are six tips that we have gathered for you, so you can easily learn how to pick a property management company and what to look for when you are searching for one.
1. Look for Specific Expertise in the Field
There are plenty of different types of management companies out there. You need to find a company that caters to your specific needs and requirements. Some of them handle commercial clients, some handle single-unit family homes, and some hand multi-unit properties.
You need to select a company that aligns with your line of work. Beware of handlers who are real estate agents primarily but manage others’ properties part-time. When looking for a property management company, you need to select the one which you can rely on when it comes to handling intricate tenant-landlord variables.
To find the best possible management company for your property, you will need referrals and a lot of research. You can get referrals from other trusted property investors who have hired property management companies for their real estate. Similarly, you can research a lot about a company these days through the internet. Google and Yelp reviews can often give you the general impression of the company.
2. Authenticate Licenses and Qualifications
Property management is not a simple task. It requires rigorous training, testing, and certifications to be able to operate and handle any situation that presents itself. When selecting a firm to manage your property, you need authenticated professionals and not some part-timers who could potentially downgrade your investment.
For this, you need to ask for a valid property broker’s license or property management license from all the applicants. Ask the companies that you are browsing through about any certifications their company has.
3. Study the Property Management Agreement Carefully
The property management agreement usually iterates the responsibilities a property management firm will undertake. Considering the importance of the document, you must give the contract a thorough read. It can be helpful to have a lawyer by your side in such situations.
Going through the contract will help you get the services you need from the company. A typical property management agreement consists of numerous clauses that detail the services provided like the advertisement of vacancies, requests from tenants, property upkeep and maintenance, rent collection, eviction, move-ins and move-outs, and other day-to-day duties.
You must add those things to the contract that you do not want to do personally. All expense measures should be mentioned in the contract, so you are not dumbfounded with a huge bill in the future. It is essential to define the starting and ending date of the contract clearly.
Usually, such firms make a 1-year contract.
4. Rates and Fees
One of the most important things to consider, when hiring a property management firm, is to see if they are affordable for you or not. The normal charging rate for the services provided by well-reputed firms in the project management business is between 8 to 12 per cent of the total rent collected.
Anything over this range is not recommended. When signing off on a contract, you must make sure that the hired company lays them out clearly. A company may include additional charges like marketing fees, leasing fees, lease renewal charges, and a vacancy fee.
5. The Number of Properties they Manage and their Screening Process?
After hiring your property management company, it will be their duty to make sure that vacancies in your apartments or condos are filled. For this purpose, you need to know their vetting process. You do not want to end up with a tenant who ends up defaulting on his/her rent, making you go through the tedious eviction process.
A good vetting procedure is to check for criminal background, credit scores, employment, and an income report. Also, you would want to know how many properties does your management company manages before making any decisions. You need to be sure if they are capable of handling your investment the way you want.
6. Their Maintenance Schedules
A speedy maintenance track record can forge a path to your tenant’s heart and a renewal of the lease. Maintenance is the biggest concern of tenants anywhere. It is up to you and by extension, your property management company’s responsibility to make sure your tenants stay happy and content with the services provided.
Allowing the tenant to hire their repair-man can be a huge mistake as you will not be able to make sure how much did it cost to get the work done. Therefore you will need a management company that is available at every beck and call of the tenant as well as are equipped with skills to deal with any maintenance problem that arises. Maintaining the building can help you reduce the future costs of repair.
If you are looking for property management Tampa, Florida, then Powell Realty is great option that checks all of these boxes. After your business expands enough that you can generate a stable revenue stream and are ready to invest in your other projects, it is essential to invest in a project management services provider that allows you to focus your attention elsewhere. Moreover, hiring professionals such as
Powell Realy to manage your property saves you from a lot of hassle that comes from being a landlord. We hope that these six points are going to help you in finding a property manager that fits your requirements as well as saves you from making any impulsive decisions.