Managing a rental property by yourself can be a tough task. Aside from looking for good tenants, you have to handle other tasks such collecting rent, responding to complaints, maintenance, and repair, as well as evicting unruly tenants among other issues. Such responsibilities can be draining especially if you have other more important things to take care of. A rental property management company can help ease the burden by taking over all the responsibilities that come with owning and managing rental properties, through the aid of a property manager. Although the property management companies will deduct a certain percentage of fees, they will be responsible for everything that happens on the property.
Some window-shopping and research are therefore needed to ensure you only hire the best in the industry. Although you will be handing management over to the company, it would be advisable to choose a company that will not only take care of the property but the tenants as well. Outlined below are some of the key factors to consider when shopping for or hiring a rental asset management firm.
The management company should have some prior experience in rental property management and have a portfolio to back it up. There's more to managing a rental property than just handling repairs and collecting rent. The company should not only value the tenants but also treat them properly to avoid a mass exodus from the property. It would, therefore, be advisable to check customer ratings and reviews about the company before engaging them.
The management company needs to be committed to delivering the best service to both you, and the tenants. While some companies only work from Monday to Friday for a few hours a day, you need a company that will give your property undivided attention, especially during weekends. A tenant could have an issue in the middle of the night, during holidays, or even on weekends. Should the tenant need assistance, the management company should be committed enough to sort the issues as soon as possible.
Do not be duped into hiring a company only because they wire your money in record time or low service fees. Be sure to read the fine print to ascertain any hidden charges and especially contract cancellation clauses. Some companies will require at least a 3-month notice before canceling while others only need a month. Reading the fine print also helps you identify other terms that you may not be comfortable with.
The hardest part in managing rental properties is when you have to deal with or evict a tenant. How the company handles conflicts in the property, in particular among tenants is a factor you ought to look at. Ask the managers how they handle such issues, and how they reach the final decision to evict a tenant. If possible, request a step by step guide on how they handle conflicts to avoid losing valuable customers.
The main idea behind running a rental property business is to make profits. The company's tenant marketing and retention tactics are vital in ensuring you get the most from the property. One of the best ways to know if a company is good enough is by checking their vacancy rate. If most of their properties are vacant, how sure are you that you won't fall a victim as well.
A good property management company should not only take care of your problems but also ensure the property is in the best condition possible. Tenants too have a say as well, which is why the company should respect them as well.