Top 5 Factors to Consider When Picking Property Management Services
The United States seems to be shifting from a nation of homeowners to a nation of renters. Some cities have more renters than homeowners. On average, these cities saw a 12% increase in the number of renters.
This is great news if you’re a real estate investor. You can afford to purchase more properties and expand your business.
Picking property management services to assist with managing the properties and tenants is essential. That’s how you’ll live the dream of being a hands-off real estate investor.
Read on to learn the top five things you should look for in a property management company.
1. Property Management Experience
Ask the property management services company about their experience. Ask about the types of property they have the most experience with.
Some may only work with single property owners that have multi-family buildings. Others work with large apartment complexes.
Property managers need to be licensed and certified, so don’t overlook those qualifications.
You can look at references and reviews online before contacting a property management company. Be aware that some negative reviews might be from disgruntled tenants.
If you’re not sure about a company, then ask other real estate investors in your area.
2. Ability to Manage Properties
There’s a chance that you’ll come across property management companies that are incredibly affordable. They rely on managing a lot of properties to turn a profit.
You want to make sure that they have the capacity to handle your properties as well. If you see that a company has a lot of properties, ask them who will manage yours.
Ask them about other members of their team, like contractors and landscapers.
3. Broad Range of Services
Property management companies vary in the level of services they perform. You want to find a property management company that does more than just find tenants.
You want a service provider that nurtures those relationships, handles maintenance and helps you identify other investment opportunities.
4. Insurance Policy
A property management services company needs to be insured to protect you from any potential liability issues.
At the very least, a property management company should have general liability and business insurance. Once overlooked policy that is necessary is errors and omissions insurance.
5. Property Management Agreement
Be sure to read the contract agreement carefully. This outlines what the property management company will do and your responsibilities.
The fees are also outlined in the agreement. There should be a clause that outlines how additional expenses get approved. Usually anything above a certain dollar amount (between $200-$500) requires your approval.
Picking Property Management Services
Do you find picking property management services to be much easier now? There are a lot of great property management companies out there. You need to make sure that you find the best one to meet your needs.
Look for a property management company that has the experience and capacity to handle your properties. Be sure to carefully review the contract to understand your responsibilities and the costs.
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