Owning rental properties can be big business. Whether you own a couple of properties or several, chances are, you will find yourself very busy with the needs of your tenants. From repairs to maintenance needs, rent collection and more, you may soon become overwhelmed with the daily tasks you need to complete. Once you find yourself with too much on your plate, it's time to find a quality property management company.
So, how do you know which company to hire? There are particular questions that need to be asked in order to ensure you hire the right individual for the job. Below are 10 questions you should consider when seeking the right property management company for your rental properties.
#1. How Long Have You Been in Business?
It is recommended that you hire a company that has at least five years of business experience. The company will have a long enough track record that you can see how well they provide services.
#2. What Services Do You Offer?
As the landlord, you will need to ensure that a property management company offers the best services based on your needs. Every company is different and while some offer a full suite of options, others do not. Ask for a list of services provided so the high points you need are offered.
#3. What Strategies are Used to Fill Vacant Units?
You want to keep your rental properties with tenants, so knowing the vacancy strategies of a management company is important. Marketing efforts are key to ensuring every property you own remains rented. Find out what services a company provides so that you rest easy knowing that you will have paying tenants each month.
#4. Are You Familiar with Fair Housing Laws?
Every property management team needs to understand fair housing laws. Local, state and fair housing laws need to be understood to ensure the proper management of your investments.
#5. What are the Monthly Management Fees?
Fees for management services should be between 8% and 12% of your monthly revenue earnings. This can vary based on the type of services you are receiving. Check for fee pricing so you know what you are paying for the services you are receiving.
#6. Are Management Fees Collected When a Unit is Vacant?
If a property management company collects fees when a unit is vacant, they are not worth your time. Managers should have the incentive to lease your units quickly and forfeit a portion of fees in the meantime.
#7. What Are Your Tenant Qualifying Requirements for Tenants?
Find out what procedures are used to qualify tenants for a lease agreement. This can include employment information, background check, credit check, etc. The right info needs to be gathered so that the property is rented to a responsible individual.
#8. How are Service Requests Handled?
Learn how the management company will handle service requests of tenants. Will you need to make final decisions on repairs and maintenance or will these services be taken care of by the company?
#9. How Often Will You Update Me on My Property?
As the property owner, you should have access to information as you like. Ask the company how often they provide updates and what information they provide.
#10. How Will You Communicate with Me?
Learn the communication types that the property management company will use to contact you when needed. Think about how you prefer to communicate and make sure the company offers that method, be it a telephone call, texting or email.