Did you know that more than 80% property administrators are responsible for collecting rents and maintaining the buildings? Finding the best property management company in your area is probably at the top of your priority list as a real estate investor.
After all, who doesn’t want to work with a company that will take care of their investment and make sure it’s well maintained?
The problem is, how do you know which one to choose? With so many property managers, it can be difficult to determine who to trust.
Fortunately, our guide below will provide you with some tips that will make it easier for you to choose the best property management company in your area:
Ask friends and family for recommendations
When looking for a reputable property management company, your friends and family can be a great resource. Talk to people who own rental properties and see who they recommend.
They’ve probably worked with a few property managers in your area. Therefore, they know who to trust with your income property and who not to work with.
If they have no personal experience with property management companies, they may know someone who does. Once you have a few names, you can start researching each one.
Check specialized experience
The best property management company for you is one that has experience managing the type of property you own. If you have an income property, look for a company that specializes in rental property management.
If you own residential property, look for a company that specializes in managing single-family homes or small apartment buildings.
Working with a property manager with specialized experience will give you the best chance of having lower tenant turnover, fewer maintenance issues and a more stable income. Make sure the types of homes they manage are a good match for yours.
Get a written estimate
After interviewing a few property management companies, ask each for a written estimate of the services they will provide. The quote should include:
- A list of services the company will provide
- The frequency of these services
- The estimated cost of these services
- Company policies on billing, late fees, and security deposits
- The duration of the contract
A good property management company should provide you with a clear and concise estimate of their services. But be sure to get the estimate in writing so you can compare each company’s costs side-by-side.
After choosing a property management company, be sure to put everything in writing before signing a contract. This will protect you and your property in the event of a misunderstanding on the road.
Ask each company for references
As you research each business on your list, be sure to cross off the one you don’t like. Once you have several companies to choose from, call each one and ask for references and contact information.
Their list of references should include past and current landlords and tenants. Be sure to contact each reference to inquire about their experience working with the company.
Here are some key questions to ask:
- How well does the company communicate with landlords and tenants
- Does the company respond quickly to maintenance requests
- How do they handle rent collection
- Would you recommend this business to another owner
- Is it easy to reach someone from the company when you have a question or concern?
The answers to the questions above will give you a good idea of what it’s like to work with the company.
Check their licenses and insurance
The best property managers should be licensed in your state and have the appropriate insurance coverage. You don’t want to be stuck with a company that isn’t properly insured and licensed.
This is because you could be held responsible if something goes wrong.
You can often find this information on their website or call them. During the call, ask the company to provide proof of insurance and license. If they can’t provide it, move on to the next company on your list.
Read online reviews and customer testimonials
Looking at online reviews and customer testimonials can be a great way to do your research on a potential property management company. Online reviews can give you a good idea of past customer experiences with the company.
On the other hand, customer testimonials can also help you get an idea of the company’s customer service. You can find reviews online on the company’s website and on third-party sites such as Yelp, Better Business Bureau, and Google.
When reviewing customer testimonials, pay attention to complaints. If there are a lot of complaints about the same issue, it could be a sign that you should look elsewhere for your property management needs.
Interview every company left on your list
You’ve narrowed down your list of potential property management companies to a handful of finalists. The next step is to interview each company.
When interviewing property management companies, you need to ask yourself a few key questions:
- How long have they been in business?
- How many properties do they manage?
- What is the experience of their employees?
- What are their fees?
- What kind of services do they provide?
Be sure to get the answers to these questions in writing. Once you have all the information from each company, you can start comparing their services.
This information will help you decide which company is best for you and your property. If you are a wise investor, you will choose a property management company which will help you maximize your profits and minimize your headaches.
Hire the best property management company for you today
Take your time choosing a property management company. This is an important decision that will affect your bottom line.
By following the advice in this blog post, you can be sure that you are choosing the best property management company for your needs.
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