As investors build their real estate portfolios, they often need property management companies to help them maintain a competitive edge. Investors can streamline operational processes to save time and add some efficiency, but those strategies have their limits. As their real estate assets continue to grow, investors should look for a more scalable solution: a reputable property manager that can free them from the time-consuming operational tasks associated with property management.
What Services Can I Expect from a Professional Property Management Company?
The following list is not meant to be exhaustive, but will cover the vast majority of what a professional property manager will do:
- Collect rent on a timely basis.
- Deposit rent checks.
- Provide appropriate accounting for all expenses and income related to a property, including annual and monthly reporting.
- Verbal and e-mail follow up with a tenant who does not pay rent on time.
- Written communication with a non-paying tenant.
- Filing for eviction for a non-paying tenant.
- Performing all tasks associated with eviction.
- General verbal and written communication with tenants.
- Maintaining 24-hour answering service.
- Responding to tenant complaints with appropriate action and follow up.
- Acting as a resident agent for owners.
- Discussing with owners on insurance and real estate tax issues.
Tips for Hiring a Property Management Company:
It is extremely important that before you do take on the services of a property management company that you are confident that they will be able to look after your property to the standard that you require. By understanding and asking a set of basic questions, you will be able to obtain a better understanding of whether or not that property manager will be suitable and will meet your needs. The following are six questions you must ask before engaging a property management company:
Who owns and runs the company?
You want to find out who operates the company and how many staff does the company have. This means, that they can provide a highly level of support and professionalism because it falls directly back on the owners. So, when looking for a property manager, find out whether the owners actually work in the company and find out how many staff they have and how many properties are being managed between those staff.
Is this company run as a full time or part time business?
Make sure you find out whether they operate the company on a full time basis. There are plenty of Mesa property management companies out there where the owner of the business is the only person that works in the company and they operate it as a part time business. If you entrust the management of your property to someone like this, you may find they don’t have the resources or capital behind them to continue to improve the service of the company they operate.
What are their fees?
Make sure that you find out what all the fees are for the property management company that you are looking to take on.There are lots of companies out there that state they have a low management fee, but what they don’t tell you about are all the extras they add on depending on the service undertaken. So by finding out what the fees are, you will know upfront exactly how much it will cost you to have your property managed. But always remember, “you get what you pay for”, so cheaper does not always equate to better service.
What checks they carry out to ensure a prospective tenant is suitable?
This is extremely important and you need to find out what checks are being carried out when screening tenants. You want to make sure that they reference check prospective tenants before signing them up to move into your property. Checking a tenants’ identity, their past rental
Are they viewings in the weekend or just during the week?
Find out what their operating hours are. Do they work just Monday to Friday? If your property is vacant is it getting shown to prospective tenants over the weekend? These are really important questions to ask. So make sure you find out that if your property becomes vacant, will this company you’re talking to, do viewings over the weekend.
Can they provide any references from client properties you have managed?
Make sure that when you are interviewing a prospective company, you find out if they have any references that you can look at. You want to make sure that you are going to be happy with the property management company you choose, and therefore, by reading some references left by previous clients, it can help you make an informed decision.
By now, you should have a good understanding of what the top 6 tips before hiring a property management company. Make sure you put the time in so that you find the best company that is going to meet your needs. Finding a property manager does not need to be stressful, so by asking these questions, you’ll be able to find the best agency to suit you.
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