In order for your rental property to prosper, you need an effective and efficient management team. A rental property is a massive investment on your part, so it’s crucial that you have someone who is experienced and you can trust.
Without proper management, your rental property is at great risk of crumbling. Although finding a trustworthy property manager can be difficult, it’s not impossible.
Read on to learn five tips for choosing property management.
Ask for Referrals
The first course of action you should always take when trying to hire a property manager is to ask others for references. In fact, getting referrals from people you know like friends and colleagues is a great way to find a trustworthy property manager.
However, it’s important that you keep in mind that the person you ask could be a little biased. Be sure to do research on the company or person they refer before reaching out for an interview.
On the topic of research, it’s also important that you do extensive research on the property management companies as well. Since you don’t know their history, it’s important to verify their reputation and see if there issues in the past.
To get the most out of your research, look at the reviews left by other clients, look at their past experiences and even contact some of the clients who did business with them. Contacting the company directly is also a viable option, but they’ll most likely shy away from bad experiences.
Check For Any Certifications or Licenses
Despite being a management company, they may have nothing more than a simple real estate license. Although there are a few areas that don’t require companies to have certification, this is something you want to avoid. Without the proper licensing or certification, there’s no way to tell how legitimate the company is.
Obviously, you don’t want to risk your rental property with someone who probably has no experience. It’s in your best interest to check if they have any certification or licensing before giving them a call.
Here is a brief list of certifications and licensing to look out for:
- Master Property Manager (MPM)
- The National Association of Residential Property Managers (NARPM)
- Residential Management Professional (RMP)
Not every property management company needs to have all of these certifications, but they should have at least one. If they don’t, keep searching.
Read the Agreement Thoroughly
Unfortunately, hiring a property management company does not come cheap, so it’s important that the company you’re looking to hire is worth every cent.
Each and every company will provide you with an agreement that details everything ranging from the fees, the company’s services, your responsibilities, how long the contract is good for and the clauses. When you are handed this agreement, make sure to read over everything carefully.
You don’t want to sign a contract with a company that doesn’t meet your expectations. Despite the clauses in the contract, getting out of it may be difficult if you decide that they aren’t fit to run your rental property. One way to be sure that you’re hiring the right company is to use a real estate comparison website. They’ll help you weigh the pros and cons of each company you have to choose from.
Get a Feel For Their Services
Property management companies may have the same goal, but they accomplish it in different ways. Before you hire a company or manager for that matter, learn how they will handle things. For instance, ask how they would handle a vacancy.
What tactics will they use to collect rent from tenants? How will they screen future tenants? Understanding how the company operates is often the determining factor of whether or not you want to hire them.
Investing in a rental property is quite an accomplishment. However, the wrong management company can end up turning that accomplishment into a financial disaster. Be sure to keep these tips in mind when looking for a property manager.