There are times when owning a rental property or properties can become too much for a landlord to handle. That is where a property management company can be helpful. There are several reasons a landlord would need to enlist the help of a property management company. One reason would be geographic relocation to a place a great distance from the property in question. Another would be if the landlord just had more properties than he could attend to, thereby, needing assistance. Yet another would be that if a property owner did not want to deal with the day to day running of investment properties. For example, finding tenants, collection of rent monies, evicting tenants, scheduling repairs, or maintenance. Finding the right property management company could be difficult. These tips should help find a management company that will care for the property just as well or better than the landlord would.
he first step in identifying a good property management company is to get references. This is above all the others. Get the contact information and speak to the property owners that are presently clients of the property management group in question. Find out if they do what they say they will do. And find out if they do it in a timely fashion. Don’t waste time dealing with a property management group that has a bad reputation among the very people they represent. Speak to at least three current clients. They know what you are wanting to know, ask them.
The next thing is that landlords need a property management company that is local to the investment property. It is best to have a company watch over and manage the property that is at least local to the property. Identify a local company that may even have other clients in the area of town or even the same neighborhood.
Another vital key to look at is the experience level of the property management company. Do they have clients with the same type properties as the one being considered? Do they have a specific type of property they specialize in like commercial or residential? These answers need to be know before any property is to be managed by any potential company.
The final aspect to make sure of is the financial aspect. The finances have two sides. When will the landlord be paid, and what are the fees involved with having a property maintained with this company? What are the property management groups policies concerning slow or late rental payment? Will the management company be accountable and offer financial statements that detail any and all income and expenses for the property? Are there any “hidden” fees that may come up as part of this property management? These questions and more must be asked and answered to the property owners satisfaction before any contract is signed for property to be managed.
The key in choosing a property management group is talking to current clients and make sure all questions are clearly answered before entering into an agreement with a management company. Be thorough and follow up.