While there is a lot of money to be made in owning a rental home or commercial property, working alone or having the wrong people in your team can lead to disastrous results. You can’t afford late rent payments, high vacancy rates, poorly maintained properties, and difficult tenants, right? Well, that’s what you may get if you don’t have the best property management company on board.
Your rental property is one of your most significant investments, so you need to maximize its earning potentials. How can you do it? You can start by hiring the best property manager or property management company you can find. It may seem counterintuitive at first, but upon learning the benefits of working with one, you’ll surely appreciate their value.
Why Hire a Good Property Management Company?
Here are some reasons why you should:
- They can find your ideal tenants. Established property management companies have a time-tested screening system in place to weed out potentially troublesome tenants. And since they have access to a bigger pool of potential renters, they can help you find quality tenants who will pay on time, stay longer, and take good care of your property.
- They help maximize your profits. With a credible property manager on your team, you’ll have higher retention rates, lower turnover costs, lower maintenance and repair costs, maximum return on investment, and better profits.
- They provide time and financial freedom. Having a rental property can be financially rewarding, but it requires a lot of your time and energy. It can even be more tedious than your average 9-to-5 job. If you’re managing it single-handedly, you have to do the marketing, screen tenants, collect rent, do routine inspections, handle the maintenance works, and take care of all the legalities. Are you up to the challenge? Or would you rather spend your time doing more important things like looking for better investment opportunities or spending quality time with family and friends? You choose.
- They help you understand the law. You can run into some legal troubles if you don’t have a full understanding of the applicable property management laws, taxes, and other legal requirements. An expert property manager can help you sort these things and keep you from running into any sort of trouble.
- They provide a professional distance between landlords and tenants. By serving as the primary point of contact between landlords and tenants, property managers help keep things on a purely professional level between the two parties. Getting too close and personal with tenants is not good for business. Unfortunately, most landlords learn about this the hard way.
How Do You Find the Right Property Management Company?
Since the success of your business depends largely on your property manager, you need to find the best candidate for the job. You simply can’t afford not to.
However, if you’re fairly new in the industry and don’t have an established network yet, finding the best property management company can be a bit of a challenge. In fact, this can be a difficult task even for seasoned investors, especially if they are buying rental properties outside their areas of residence. If you’re looking for a credible company to manage your rental properties, here are some useful suggestions that can help you accomplish your goal.
Get referrals.
Word-of-mouth can be especially helpful, so don’t hesitate to ask your network for referrals. CRE brokers, fellow investors, developers, contractors, and other industry professionals can provide valuable recommendations. You can also get referrals from friends and acquaintances who own rental properties in the same area.
Search online.
Do a Google search or check top property management websites like Mashvisor, Appfolio, and Rentec Direct to find a reliable property management company in your area. List down all the potential candidates and check online review sites such as Yelp and Angie’s List to see what people say about them. Ideally, you’ll want to shortlist companies with lots of positive reviews, since this indicates that they have already earned a good reputation in the industry.
Take a careful look at their website, if they have one, and see how they represent themselves. You might also want to check with the Better Business Bureau (BBB) and your state’s Real Estate Commission so you can be sure of the legitimacy and credibility of each company.
Additionally, you’ll want to verify their credentials with industry organizations like the Institute of Real Estate Management (IREM), the National Apartment Association (NAA), the National Association of Residential Property Managers (NARPM), and the Community Associations Institute (CAI). Taking continuing education training and courses can give you an insight on their commitment level.
Do on-site visits.
After finding the most likely candidates and checking their credentials online, it’s time to see some proof. Visit some properties they manage. Are you impressed with what you see? If the properties seem to be well-managed, that’s a good sign. You may also ask to speak with some tenants to see if they are satisfied by the way the property manager is handling their concerns.
Start interviewing.
After finalizing the list of potential candidates, meet each of them in person. Talk to at least three property management firms before making a decision.
As you go about the interview process, ask about their education, experience, services, and fee structure. You’ll also want to know what types of properties they specialize in, how many properties they manage, and how much time they can devote to your properties.
Tip: Make a mental note of your first impressions and place yourself in the tenant’s shoes. If you’re a tenant, would you consider renting from this person?
Understand the terms before signing.
Don’t sign a management agreement unless you completely understand all the terms. It should clearly specify the scope of services the management company will provide, the various fees you have to pay (management, vacancy, set-up, and leasing fees), and what rights you will have. Ask a lawyer to look over the contract to ensure your protection.
Your Search for the Best Property Management Company Ends Here
We know you’re looking for a top notch property management company whom you can trust. Good news! Your search is finally over.
At Tenant Planet, Inc., we’ll take good care of your rental properties so you can do what you love most, whether it’s growing your business or spending more time with your family, without worrying about your investments. We provide better service for a better price.
Interested in what we have to offer? If you want to learn more about us and what we can do to help you on your project, please feel free to Request a Proposal. Or if you just have questions or comments, email us at parker@tenantplanet.com.