Property managers play a key role in the successful running of a real estate business. Real estate investors try to find efficient property managers for them to handle the property and its matters. The beginners who have a few properties tend to manage them by themselves but with the increasing number of properties, it is difficult to manage them by a single person. There is an option of hiring a management company but there are many options then how we find a good one. It is recommended for beginners to manage by themselves in the beginning so that they the know the potential issues that may arise in handling a real estate business. Let’s take a look what we should ask the property management companies when thinking of hiring one.
Charges of the company
The first thing to inquire about is the charges of the company. It is common to charge seven to twelve percent of the property, but one can negotiate to a lower percentage according to the situation.
Numbers of properties the company is managing
It is also important to ask them about the number of properties they are managing at a time. Out of all the properties, how many of them are long term and short term. Both are different business types and the focus should be on the long-term rentals.
Work experience and staff responsibilities
One should also ask them about their work experience and for how long have they been in the industry. This will give an idea if they will stay in business for some time or not. It is also imperative to ask about the staff, the number of people that work for the company. The jobs of the staff should also be inquired.
Property checking schedule
The investors should also ask about the schedule of the property manager to visit the property. Does the property manager visit the rental property regularly or only on the tenant’s call?In the later case, some tenants may not notify the needs and just leave. That’s bad!
It is recommended that the investor should get the management company to work with the bank account at the investor’s financial institution instead of using their account.
The management company should tell their criteria of selecting the tenant. They should specify their methodology of running a background check on the tenants. The management should also specify the type of tenants they would prefer to select.
Handling tenants call
The management company should also be asked about their first-hand response towards the tenants calls for repair. The company should also be asked about the amount that they will specify for repair and why.
Philosophy on repair and replacement
The investor should also inspect about the company’s philosophy on repair and replacement. It should be known if the company prefers a long-lasting solution or the least expensive one. The investor needs to find a company that has the similar philosophy as the investor has.
While searching for a property management the investor should consider all possible situations that might occur when the company is handling the rental property. The investor should inspect about how the company charges for evictions. We all hope that such a situation never occurs, but one should be ready for all types of circumstances. The company should also make it clear if they will prefer to advertise the property while it is occupied, or they would want to wait for the property to be vacant to do so. All of this will help in finding the fittest management company.