When a landlord signs a lease agreement with a renter, they're essentially assuring that they're going to hold up their side of the bargain. Even though a landlord's responsibilities can vary from one state to the other, some societally-acceptable morals suggest that there are some vital elements they need to look after, and we get it! Property management- if done correctly - can be a complex ordeal, particularly if you have another job.
In such a situation, several people consider hiring a property management company. That said, there are some considerations you'll have to make to ensure you're hiring the best possible option. Here are the most important ones.
1. What Am I Getting from the Agreement?
When they're investing in a property for rental income, every landlord's top priority is to churn out as much money as possible. Therefore, before you consider hiring a property manager for a hassle-free approach, we'd recommend checking out what you're getting from the agreement. Find out if the firm has a stellar plan for ensuring that you're getting the maximum-possible revenue from your investments.
Ask the company's management if they have any potential marketing strategies they use and try to know if they're familiar with the market's current trends. This will tell you whether they're reliable or not.
2. How Do You Advertise Properties?
One of the main reasons investors hire property managers is to improve those stubborn tenant occupancy rates. However, this can only be possible if the property management company you're hiring uses a stellar marketing program that they can use to put you in front of interested renters. If they don't have a marketing program, then your house may sit empty while you incur losses.
Therefore, before you hire a property management company, try to gauge whether they've invested in top professionals for their marketing programs and whether these people know how to advertise properties. If they have a robust marketing strategy, you can consider trusting them with your property.
3. What's Your Maintenance Plan?
Management of your asset is a crucial step of the process, too. A property management company must ensure that all essential repairs are made right there and then. Postponing these repairs can lead to inflated costs for the property manager and potential long-term damage for your house as well. That said, some maintenance requests from tenants can be frivolous, and they need to be looked after accordingly.
Regardless of the problem, a property management company must know what the repair can cost and how long it would take to complete it. They can ensure that their vendors stay honest with them and charge them fairly if they know this. Why does this matter to you? Well, the price they charge you is directly influenced by the cost they're bearing for managing your property.
If they're paying high amounts of money, they will charge you high amounts of money.
4. How Do You Handle Finances?
Because it's a business trying to make a profit, their books must be solid. But more importantly, you should that a property management company is a fiduciary, and they must be transparent with the landlord they're working with. While this may seem like a given for several companies, only a few property management companies in San Diego, for example are being completely transparent with the landlords they're working with.
That is why there's no way you can know if the company you're working with is in the appropriate financial state of looking after your property.
5. How Do You Treat Your Clients?
While this isn't a question you should be asking the property management company since any manager would say they "treat them well," this is more of a consideration you should be making. Try to gauge the symptoms of this question since they will tell you if they'll treat you well. A good property management company will always let you question the management when something goes wrong. The property management is not your sole point of contact.
If you're trying to hire the top property management company for your asset, consider the tips below, and everything should sail smoothly.
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