Property management companies are a necessity for many real estate investors with larger portfolios and out-of-state properties. These companies help take some of the workload off investors’ shoulders and free up the time for investors to focus on growing their businesses rather than dealing with the hassle of being a landlord.
Property managers will typically be in charge of all tenant-landlord interactions and day-to-day operations. Some of the services property managers provide may include marketing your rentals, conducting background checks on tenants, collecting rent, handling maintenance and repairs, addressing tenant complaints, and pursuing evictions.
Hiring a property management company has many advantages, so it is important to choose a reputable, experienced company. Following are some considerations to bear in mind when selecting the right property manager for your properties.
Many real estate professionals, including property managers, are accredited by professional bodies and government agencies. Make sure to look up the credentials of staff members and owners. Professionals within the real estate industry are more likely to know the ins and outs of the rental process and provide insights on potential repairs and improvements to ensure the property is up to snuff.
A good reputation online and within their offered references is key, so a good place to start your research is through the internet. Search for property managers from the area where your property is located and check out their ratings and reviews online.
An accountable property manager is one that is responsive and organized. As part of their duties, property managers are expected to furnish landlords with regular reporting, including tenancy reports, financial reports, and other ad-hoc reports.
A tenancy report should contain timely updates on occupancy, turnover rate, and pending notices. A financial report, in turn, should detail expenses and revenue, including rent collected, agency fees as well other service fees. In addition, managers should be able to address in writing any requests for information on an ad-hoc basis.
A company that offers a wide range of services related to your business should be at the forefront of your list. After all, the reason to contract out the management services is to give you peace of mind.
Make sure the companies you are researching provide the following services at a minimum:
- Property Maintenance and Repairs: property managers must have an extensive network of reputable contractors to conduct repairs, improvements, and maintenance work needed to retain tenants.
- Funds Management: rent collection, banking, and remission should be part of the agreement.
- Marketing Services: Ask to see a vacancy posting as well as any brochures and marketing material. Things to consider are a strong social media/online presence, professional photography, and compliant language in the advertisements.
- Tenancy Screening: Ask how the company runs background checks, verify payments, and stay in compliance with existing regulations in order to secure high-quality tenants.
Are you ready to invest in real estate and see the value it can provide? RLG would love to help you! Call us today to learn more.