Most landlords are personally hands-on in managing their properties. From marketing property rentals, managing maintenance or repair issues, collecting rental fees, responding to each tenant’s inquiries and concerns to eviction matters, all these are all landlord’s concerns to deal with. Because of this, some tend to hire a person to assist them with each of the tasks.
But sometimes it’s better to just hire a property management company that is more skilled and experienced in managing properties and dealing with tenants. Though it will cost much, it has lots of advantages especially if there are already lots of property rentals being managed.
So, in no particular order of importance, here are the things to look for when hiring a property management company.
1. Excellent Customer Service
Make sure the company has excellent customer service. Regardless of the industry, good customer service is a top priority as it shows how professional and reliable their employees are.
In choosing a good property management company, it’s important to take note of how fast they respond and show respect in attending to requests and inquiries. If they are, then it will be easy to build trust and work with them for a long time. There will also be an assurance they will treat tenants in the same manner as well. But if there’s something off with how they communicate and cooperate, it’s better to look for another company instead.
2. Experience
When looking for a good property management company, ask about their proven records of experience in handling and managing home properties, units, and, of course, tenants. Years of working in the industry also matter, so make sure to look for it as well when reviewing their work experience in the industry.
If they have impressive work and experience in their record, then they can surely have a grasp on how to handle commercial or residential properties. They will also manage to handle lots of units and small properties at ease.
3. Insurance
It is also important to know if the property management company has all the necessary insurance types like general liability, property-casualty, and errors and omissions. This may come in handy when unexpected circumstances happen in the future.
4. Licenses and Certifications
Always make sure that the company has professional licenses and certifications to operate. It shows that they are experts in doing the job of managing different types of properties.
Try checking if their license is updated, they have professional affiliations, and they have certifications in managing properties.
Some of the few certifications to look for are:
- CRMC (Certified Residential Management Company)
- MPM (Master Property Manager)
- NARPM (National Association of Residential Property Managers)
- RMP (Residential Management Professional)
By choosing to hire a property management company with either one or all of these certifications, there will be fewer problems that will be encountered since there’s enough proof that they are the most qualified company to choose from who can do a better job.
5. Large Client Base
A company with few clients can be a sign they have no or a poor record of achievements made in the past. Choose to pick the best property management company with a large client base because they have a wide range of connections to many people and companies. It also shows they have lots of experience in this industry and are popular within the community.
6. Low Vacancy Rates
Another important thing to consider is if the company has a high vacancy rate, meaning they can deal with tenants for just a short time. This means they have excellent ways on how to communicate and understand tenants’ needs and preferences.
If the company has a long vacancy period in between each tenant, then decide to look for another one instead.
7. Policies and Systems
Don’t overlook a company’s set of moral values and policies they implement. These are some of the things that tell how good they are in handling processes if they have efficient systems within their company, and how they operate on a day-to-day basis. If they can handle well their internal issues for sure they will be lesser problems and hassles when doing business with them.
8. Solid Reputation
It is easy nowadays to see the scope of a potential property management company before officially hiring them. By simply checking them out in the local area’s business bureau, there will be convincing proof that they have a good reputation in the property management industry.
The world wide web also has reliable sources to read reviews and opinions from other landlords about property management companies they have worked with. It’s a helpful way to decide which company you should pick among the rest.
9. Transparency in Contracts
This is more of a reminder, but an important thing to consider as well in choosing the best property management company. Make sure that the company will provide and discuss every detail from the contract they will offer. If they are transparent enough, then it can give an impression they are trustworthy and reliable to work with.
It’s also convenient to have an attorney look over the contract before signing if it’s a good deal or not. Some things need to be detailed and highlighted in the agreement or contract with the company, such as the type of service they will and can provide like daily operational duties, maintenance or repairs, marketing, and vacancy fillings, listening and resolving the tenant’s requests, and needs, and managing move-outs and eviction procedures.
Please check if additional expenses are also covered in the agreement if they specify how they will handle payment repairs, and if they have set a limit to every expense so it won’t have any misunderstandings in the future.
Read the contract carefully and provide termination fees in case there will be any breach of contract. Most contracts for property management companies only last for a year, so make sure to always review and check the agreement every year. For those who are looking for a property manager, always make it a habit to check their property management services to ensure everything goes well
