The type of property manager you select for your rental property can affect how profitable your property is. A rental property manager at myHomeSpot.com revealed that property managers are more than a conduit between the landlord and tenants. Property managers have a duty to the landlord, tenant, and the rental property.
A good property manager will ensure that the landlord is updated with the latest information about their rental property while also keeping the property occupied at all times.
As part of the responsibilities, property managers are also expected to address issues faced by tenants, set rent, collect rent, issue eviction notices, and more.
Repairs and property maintenance also constitute a part of the services offered by property managers.
As a landlord, the journey to making your rental property profitable and sustainable begins with your choice of a property manager. In this article, we go through 7 important tips that can help you choose the right manager for your rental property.
1. Search For Referrals
Your journey to finding a good property management company starts with having as many options to choose from as possible. To cut the process short, you can leverage the experience of friends and family members by asking them for referrals and recommendations.
There is a huge chance that these people will only refer high-performing property managers and warn you against the bad eggs.
However, if you have had no luck with referrals, you can begin the long route by searching the internet for property managers in your local area. It is best to look for local property management companies as they are more likely to keep an eye on things better.
While searching online, do not ignore the reviews left on their websites and pages. Read the reviews and screen out property managers with negative reviews.
2. Schedule Interviews
With a handful of options to work with, you can proceed to the next step of scheduling interviews with each of the property management companies. This interview gives you a chance to get to know the company up close and personal. Take advantage of this opportunity to ask the important questions that can shape your relationship if hired to do the job.
Some of the common interview questions you should ask include;
- What are your fees and fee structure?
- How many years of experience do you have in the property management industry?
- What type of services do you provide as a property manager?
- How many rental properties are in your care?
- How do you handle repairs and maintenance?
3. Ask About Advertising
Advertising is a major key that is needed to unlock the potentials of your rental property. A property management company that has cracked the advertising code knows how to market your rental property and keep it occupied throughout the year. Asking about their advertising is essentially asking about the profitability of your rental property.
As part of the questions asked, make sure to ask what platforms they use for advertisement and what the turnover rates are.
4. Understand The Contract
Property management is a contractual agreement between a landlord and a property manager or company. The landlord outsources the affairs of the rental property to the company who in exchange takes a cut from the profit realized. When choosing a property management company, you will be presented with a contract that details the terms of engagement.
It is in your best interest, as a landlord, to read things carefully and to understand every part of the contract. Signing the contract is legally binding and you should be sure that the terms are fair and favorable to both parties.
5. Visit the Property Manager’s Current Properties
There is no better way to tell the quality of a person’s work than to have a first-hand appraisal of one. To ensure that your property will be in good hands, you can request to take a tour of one or more properties being managed by the company. Doing this will give you an idea of how good or bad of a job the company does. If you are happy with the state of the properties the company or professional manages, this can help you fast-track your decision.
6. Conduct a License Check
Licensure is an important aspect of hiring professionals. If you are paying good money to a professional, they are at least expected to be licensed and qualified. You can conduct a license check to be sure that the property manager or property management company is indeed licensed to practice in that field. Other certifications can also add to the company’s reputation.
7. Get a Lawyer
Once you have selected the right property management company for your needs, make sure to get legal help to go over the contract once more. Your lawyer will act in your best interest and will ensure that the terms of the contract are fair before okaying it to be signed.