5 Things to Look for When Hiring a Property Management Company
In the real estate market, if you are the owner of a rental property, it is always best to hire an intermediary to help find occupants and manage the property for you, because chances are that you have a lot of other things on your plate. Also, hiring a rental management company is important because they have the experience when it comes to marketing properties appropriately and doing the proper background checks on possible renters. When it comes to hiring the right property management company, there are a number of factors to look for and questions to ask yourself. Here are five things to look for when hiring a property management company.
- Being able to communicate with a property management company is crucial. Some companies have extremely poor methods of communication, which can make the relationship between property owner and manager very strained. Plus, as the owner of a property, you want to be able to get someone on the line right away, especially if it is a pressing matter. So, before you hire a property management company, make sure that they have an open channel of communication.
- Fees. Make sure that the relationship with your property manager isn’t an expensive one. Some property managers charge an arm and a leg to manage your properties. For some rental managers, the fees can range from 5% to 20%, which is usually subtracted from the monthly rent of occupants. So, you want to make sure that you are getting a good deal. The last thing you want is to be breaking even on your rental properties and not being able to cover the costs for mortgage, property tax, insurance and maintenance.
- Maintenance. Speaking of maintenance, if you are paying high fees for a property manager’s service, you might want to find out if that includes repairs and other necessary renovations. Sometimes the property management company will have their own crews, so that you don’t have to worry about getting notices asking you to pay for repairs. When it comes to rental properties, there will be numerous repairs that pop here and there throughout the course of an occupant’s lease. If you are the owner of a large rental complex, these costs could be staggering.
- Experience. Experience is critical when it comes to hiring a rental property management company. You want a company that knows exactly what they are doing, so that you can put all their trust in that they will screen renters and collect rent on time. For instance, if you are in the Tucson, Arizona region, The Nordstrom Group has over twenty years of experience in the rental business and they have an excellent reputation.
- Marketing power. It is also important that your property management company has the marketing power to fill your rental property. This includes the ability to not only place ads where people will see them, but also to conduct open houses and really convince renters to want to rent. If they don’t have the marketing power, you should probably move on.