How to choose a property management companyPosted by Jordan Muela in Property Management Articles
Choosing the right property manager can make or break your real estate investment, but property managers abound in every real estate market with new companies hanging out their shingle every day. How can you tell them apart when most make the same claims and provide the same services?
The outbound messaging and branding that a company puts forth is certainly an important factor in judging what they are about, but to really understand how they operate you need to ask the right questions.
Things should start off by finding our if they are licensed, what kinds of properties they manage and asking for a list of references. Don't move forward if they are either unable or unwilling to provide you with documentation. Even if they have a good reason for doing so there are simply way to many management companies out there to forgo getting the basic documentation neccesary to verify they are a legitimate operation.
If they pass that initial hurdle, then move on to asking them about how they handle the following:
- Setting and collecting rent
- Property Maintenance and repairs
- Property Inspections
- Tenant marketing and retention
- Handling tenant & owner funds
- Tenant screening
If you are satisfied with their answers then there are two things left to talk with them about:
- Their property management fees
- Their property management contract
Now the final and most important step is to repeat this process and talk to AT LEAST three companies in your area before you choose who to hire. Don't get lazy after you've come this far. Even if you really like the first firm you interview, you simply can't lose by talking to other companies. Doing so will confirm your initial preference, raise new questions to ask them, or introduce you to another even better option.
If you don’t do this last step you will be flying blind because you have nothing to compare the first company to.
A good management company is worth their weight in gold which makes it very much worth your time to become adept at learning how to thoroughly interview a property management company. Lastly, don't forget to use our database to find property management companies in your area.
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- Property Management Fees - Part I
- Property Management Services - A Complete List
- Hiring a Property Management Company
- What Are The Benefits of Using a Property Management Company?
- Property Management Fees - Part II
- Contract Termination
- Handling Tenant and Owner Funds
- 11 Questions for Determining if You Need a Property Management Firm
- What to Look for In a Property Management Contract
- Property Maintenance and Repairs