Real estate investing can become a nightmare. What starts as a great way to build wealth turns into tenant phone calls and property damages.
Real estate investors are at their best when they look for great deals. The best property management companies allow investors to focus on building wealth. The best companies take care of the hassles associated with real estate.
Deciding between the best property management companies is no easy feat. A smart investor will review numerous companies before making a selection.
You’ll need help with your rental properties eventually. Look for property management companies based on these factors.
Search for Specialized Talent
State and local laws vary drastically. A property manager from New York may not know the rules for Pennsylvania. Each county also has different laws regarding landlord and tenant rights.
Start your search with the best property management services in the property’s vicinity. Property managers in the area know the local rules.
Focusing on managers in your property’s vicinity helps with becoming a remote landlord. Finding specialized, trustworthy talent does not require your physical presence.
Some investors spot smart investments far from their living address. You can still capitalize on long-distance rental properties with specialized talent.
Real estate is a people-oriented business. Get to know other investors in the area. You can attend networking events or participate in online groups.
The online groups are especially useful for remote landlords. They can tap into a support network without physically visiting the location. A smart investor skips mistakes by asking others for advice.
Talk with other real estate investors in the area and ask who they use. Some real estate investors will happily share details about their property manager. Other investors will single out ineffective property managers in the area.
This strategy helps you discover the best property management companies. It simultaneously helps you avoid the worst managers and companies.
Referrals go a long way, but don’t just take someone’s word. Research property management companies and read through their reviews. A company’s reviews allow you to discover what customers think about them.
Some real estate investors may have a partnership with referred property managers. The investor may make a commission if you sign up with their property manager. While this scenario is not always the case, it happens.
Reviews let you verify the legitimacy of a property management company. If the company scores negative reviews, remove them from your shortlist. Proceed with other managers instead.
Ask for the Marketing Strategy
The best property management companies do more than take care of your tenants. They also fill up empty units and onboard new tenants. It takes several months of rent payments to catch up from a vacant month.
If a property manager cannot fill vacancies, money will bleed out of your business. This concern leads a smart investor to ask for the marketing strategy.
Invite the property manager to tell you in full detail how they promote your listings. Do not trust property managers that act secretive about the marketing strategy. You can also look at the company’s clients to assess their marketing capabilities.
Assess the Tenant Lease Agreement
After a property manager finds a tenant and screens them, they present an agreement. This agreement outlines vital terms such as lease terms and the security deposit. These agreements also explain what happens if rent payments are late.
You can ask the property manager to send a draft of a tenant lease agreement. Review this draft and express any concerns.
The best property management companies will consider your feedback. They will then make appropriate changes to your tenants’ lease agreement.
Property management is not a free service. Companies and managers will ask for a percentage of the monthly rent. Some may charge additional fees for their services.
Some property management companies provide quality service at towering price points. A smart investor must decide their budget for a property management company. Establish this budget before conducting any negotiations.
If a property management company’s cost exceeds your budget, consider other choices. When reflecting on expenses, also consider the quality. It is better to overpay for quality management than underpay for poor management.
Property inspections allow you to detect structural damages within a property. Routine inspections can save thousands of dollars. They prevent minor problems from turning into big problems.
The best property management companies conduct property inspections for your rental properties. Ask each management company about their inspection process. You may need specific inspection services based on location and the type of property.
Property inspection services are especially vital for remote landlords. Since the landlord cannot visit a remote property as often, someone else must inspect it.
Ask managers how often they conduct inspections. Some property management companies commit to an inspection every six months. Other companies conduct quarterly inspections.
For most investors, an inspection every six months is sufficient and will cost less money. Others may prefer to pay extra for quarterly inspections.
Finding the Best Property Management Companies
Many companies and managers can assist with your property. You can browse through various options but only select one. Identify your objectives as a smart investor and refer to them for your decision.
Are you investing in rental properties? Do you know some of the best property management companies? Have any tips to share?
Let us know in the comments below. We would love to hear from you.