Did you know that over 80% of property managers are tasked with collecting rent and performing building maintenance? 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 ensures that it is well-maintained?
The problem is, how do you know which one to choose? With so many property managers out there, it can be challenging to determine who to trust.
Fortunately, our guide below will outline a few 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 have likely worked with a few property managers in your area. Hence, they know who to trust with your income property and who not to work with.
If they don’t have any 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 for 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 specializing in managing rental properties.
If you own a residential property, look for a company specializing 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 problems, and a more stable income. Ensure the types of homes they manage are a good match for your own.
Get a Written Estimate
After you’ve interviewed a few property management companies, ask each one for a written estimate of the services they will provide. The estimate should include:
- A list of the services the company will provide
- The frequency of those services
- The estimated cost of those services
- The company’s policies on billing, late fees, and security deposits
- The length of the contract
A good property management company should provide you with a clear and concise estimate of their services. But ensure you get the estimate in writing so you can compare the costs of each company side by side.
After settling on a property management company, ensure to get everything in writing before signing a contract. This will protect you and your property if there are any misunderstandings down the road.
Ask Each Company for References
As you do your research on each company on your list, remember to cross off the one you don’t like. Once you have a few companies to choose from, call each one and ask for references and their contact information.
Their list of references should include past and current landlords and tenants. Be sure to contact each reference to ask about their experience working with the company.
Below are some key questions to ask:
- How well does the company communicate with owners and tenants
- Does the company quickly respond to maintenance requests
- How do they handle rent collection
- Would you recommend this company to another landlord
- How easy is it to reach someone at the company when you have a question or concern
The answers to the above questions 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 proper insurance coverage. You don’t want to be stuck with a not properly insured and licensed company.
That’s because you could be held liable if something goes wrong.
You can often find this information on their website or give them a call. During the call, ask the company to provide proof of insurance and license. If they can’t provide this, move on to the next company on your list.
Check Online Reviews and Customer Testimonials
Checking 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 customers’ experiences with the company.
On the other hand, customer testimonials can also help you get a feel for the company’s customer service. You can find online reviews on the company’s website and third-party sites like Yelp, Better Business Bureau, and Google.
When looking at customer testimonials, pay attention to the complaints. If there are a lot of complaints about the same issue, that could be a sign that you should look elsewhere for your property management needs.
Interview Each Company Left on Your List
You’ve whittled your list of potential property management companies to a handful of finalists. The next step is to interview each company.
When you’re interviewing property management companies, there are a few key questions you should ask:
- How long have they been in business?
- How many properties do they manage?
- How much experience do their employees have?
- What are their fees?
- What kind of services do they provide?
Make sure you get the answers to these questions in writing. Once you have all the information from each company, you can start to compare and contrast their services.
The information will help you decide which company best fits you and your property. If you’re a smart investor, you’ll choose a property manage company that will help you maximize your profits and minimize your headaches.
Hire the Best Property Management Company for You Today
Take your time when choosing a property management company. This is an important decision that will affect your bottom line.
By following the tips in this blog post, you can be sure you’re choosing the best property management company for your needs.
Did you enjoy this article? Check out other posts on our site for more informative tips.