Choosing A Property Management Company
In Part I, we discussed the ins and outs of investing in rental properties. Since people always need a place to live, regardless of the economy, it makes sense, but it also takes time. Property management companies provide not only the time and expertise, but the peace of mind that everything will be kept running smoothly. Since all property management companies are not created equal, the key is choosing the property management company that is the best fit for you. In part II, we will discuss just how you can make a great choice.
Referrals
From washing machines and lawnmowers to medical specialists, what is most often your first step when you need to choose. Asking family, friends, and business colleagues, of course, as well as reading reviews of various products/services. It’s where you discover what really happens behind the ads. Do you know others who have invested in rental properties? Do they use a property management company? Ask them questions, such as:
- Do they respond quickly to tenant problems involving heating/air conditioning, plumbing, or electrical issues? When left unattended, simple repairs can become expensive, time -consuming issues.
- Do they have a quick turn-around when a tenant moves out? Yes, time must be allotted for clean-up, repainting when appropriate, and other issues, but do they do it in a reasonable length of time? Do they advertise openings promptly?
- Do they have a good reputation within the community? Those who rent talk to others who rent. Everyone knows which landlords and property managers are the best – that’s why they often have a waiting list of interested potential tenants.
Website
Is it attractive and user-friendly? Will prospective tenants find it easy to browse properties and connect with the company? Is there a portal for owners to login and view the status of their properties, account, and statements?
Signs
If possible, drive past a location listed as available on their website. Are there signs placed in front of vacant properties? Just like their website, the quality/style of the yard sign can tell you a lot about the company.
Set up an interview
Ok, so you’ve talked to others and narrowed your list to two or three property management companies. Set up a time to meet with them – a face-to-face conversation can tell you a lot about the company? Are they professional? Are they open and specific with answers to questions or vague? Don’t be afraid to ask questions.
Advertising
- What are their advertising policies?
- Where do they advertise?
- Do they understand where the market is and advertise accordingly?
- Do they utilize both online and printed media?
- Do they understand their target market? (Properties geared to families have a different style of marketing than properties for senior citizens, or college students.)
Vacancies
- What is the average percentage of vacancies at any given time?
- What is the average length of time a property is vacant between tenants?
Contact
- Who will be your contact person?
- How can you reach them, and how quickly do they respond to inquiries?
Service Charges
- How much do they charge for services?
- What about maintenance and repairs? Do they have specific companies they outsource for HVAC, Landscaping, Painting, etc.?
- When outsourcing, do they get estimates? Are you notified ahead, or are the charges added to their invoice? Do you pay a static percentage of outsourced expenses?
Tenants
- What’s the process for setting and collecting rent? How much are the deposit and rent, and how does it compare to other local properties?
- When will you receive monthly rent payments? By check or direct deposit?
- Will you or the property management company retain the security deposit?
- When the property is a single-family home, who is responsible for lawn care? If it’s the tenant, how will the property management ensure the work is kept up
- How often do they – or you – conduct property inspections?
- What is their tenant screening process?
These are just a few of the questions that you might ask. Make a list of what you want to know before the ‘interview’, so you don’t waste their time or yours. Look for a company that has the necessary knowledge, experience, and staff. Verify that they have the appropriate licensing, insurance, and professional expertise. Check their reviews and references.
Hiring the right property management company will cost you a portion of the rent, of course, but it will save you time and hassle. If you have several properties, it can mean the difference between a well-run successful investment or an “albatross around your neck.”
Rentals America provides full-service property management for residential properties throughout Phoenix, Tucson, and surrounding areas. We treat your home as our own, offering a wide range of property management services to fit your needs as a landlord or homeowner. Contact us today and discover how we tailor our services to ensure that you have the highest level of service for your home.
