In the United States, 41% of rental properties are owned by individuals. As a landlord, it can be difficult to manage everything from tenant applications to property maintenance. If you don’t have time to learn how to manage a property, you may benefit from hiring a property management company.
Do you want to learn more about the benefits of working with a property manager and how to find a reliable company to work with?
Keep reading this guide for the top property management tips to help you choose the best property management company!
Find a Local Company
Finding a local property management company is one of the most important things you can do as a landlord. You need to make sure you hire a company that is very familiar with the local market and has a connection with the local community.
A company with roots in the community will know how to serve you and your tenants in the best way. They will also be more familiar with state and local housing laws. This way, you can feel confident that you will not be breaking any housing laws.
Plus, a local company will be able to provide you with immediate assistance if something goes wrong. Whether your tenants need help with a repair or you need on-site help with your rental property, a local company will be able to serve you best.
Another simple way to find a reputable company for your rental properties is by getting recommendations. If you know of any other property investors in your area, they may have a company that they would refer you to.
You could also ask your real estate agent or your local friends and family members if they know of a high-quality property management company that you could work with.
These word-of-mouth recommendations are typically more trustworthy than anything you could find in an online review!
Check Online Reviews
While getting recommendations from people you know is the best way to find a reputable company, checking online reviews can also be beneficial. This allows you to gain insights into the way a company treats its clients!
Skimming through all of the reviews for a property manager makes it easy to identify red flags with a company.
If there are mostly negative reviews, it may be best to find a different property manager to work with.
Ask About Available Services
Most property managers can provide you with the same basic services. Still, it is always best to find a management company that offers a full range of services. This way, you will get the most value for your money!
A full-service property manager will be able to help you with every step of the process of finding tenants. This includes marketing your rental property, screening your applicants, writing an airtight lease, and more.
They will also help you maintain and manage your property after you have selected tenants. This includes repairs, rent collections, property inspections, and reporting. A full-service property management company will save you countless hours of work as a landlord.
Set Up a Consultation
Before hiring a property manager, you should always set up a consultation with the company. This will allow you to talk with them either in person or over the phone and can give you additional information about their services.
During your consultation, you can ask your property manager specific questions about their services and experience to ensure that they are qualified.
You should also find a company that you feel comfortable with. Listen to your instincts when you meet with your property manager! If they do not seem professional or reliable, you should err on the side of caution and hire a different company.
Learn About Pricing and Fees
Next, you should learn about the pricing and fees for your property management. You need to find a company that fits your budget.
Most companies will give you a pricing estimate for their services. The price of property management depends on the size of your property, how many tenants you have, and even the location of your property.
Make sure you know how much the services will cost and exactly what is included in the services.
Still, it is important to remember that these services are an investment. While the property management fees may seem high, paying for a property manager will save you time and money in the long run!
When you consider the pricing of your property management services, make sure you consider the value of the services as well. If you choose the cheapest options, you may not get high-quality services.
Ask About the Tenant Screening Process
The tenants you have in your rental property can make or break your company. As a landlord, you need to be sure that only high-quality, qualified tenants are living in your space!
Because property management companies are so involved in the tenant selection process, you need to make sure that they have a reliable tenant screening process!
Do they conduct thorough background checks of all of your applicants to help narrow down the search? Tenant screening should include a credit check, information about the tenant’s eviction history, and information about their criminal record.
Having this information can help you avoid the process of evicting tenants in the future.
Find a Licensed and Insured Company
Finding a licensed and insured property management service is essential for a rental property owner. It will protect you from unnecessary complications and can provide you with peace of mind.
In many states, property management companies must have a broker license or a license for property management.
You also must find a property manager that has the appropriate insurance. For example, they should have general liability insurance and property casualty insurance at a bare minimum.
Finding an insured company will provide you with peace of mind that you and your property will be protected if something goes wrong.
Prioritize Specialized Experience
As a landlord, your rental property will be different than other rental properties in the area. Because of this, you will have different and unique needs. Finding a property manager with specialized experience caring for your type of rental property will provide you with the best services possible.
For example, you may not want to hire a commercial or multi-family property manager if you have a single-family residential property.
This is because the services required for a large property with many units will be much different than those for an individual home or condo. You will be in the best hands when you find a property manager that specializes in your type of property.
Ask About Housing Laws
When you meet with your property manager during your initial consultation, you should ask them about their familiarity with housing laws. There are federal, state, and local laws that landlords need to follow.
For example, the Fair Housing Act prevents housing discrimination. Your rental property manager needs to be familiar with all of these laws. Otherwise, you could have a legal mess on your hands.
Asking your prospective property manager specific questions about these laws will ensure that they are capable and knowledgeable in this area.
Thoroughly Read the Property Management Agreement
Finally, you must carefully read through the property management agreement before you sign a contract with a property management company. This is the document that outlines your business relationship and the services that your property manager will perform for you.
When reading through your agreement, make sure you see what services are provided and what fees you will be charged. For example, does your property manager simply help with property maintenance? Or do they fill vacancies, deal with evictions, and more?
You should also understand what your responsibilities are as the owner. What tasks are you required to perform?
Lastly, you should double-check the information about contract duration and termination. Most property managers only require you to sign for a one-year basis, so make sure you are on the same page!
Having all of this information before signing the contract will ensure that there are no unpleasant surprises down the road.
Find the Best Property Management Company Today
As a landlord, utilizing property management services is a great investment that can save you time and money. Following each of these tips can help you find the best property management company to work with!
If you are looking for property management companies in Memphis, Reedy & Company can help! We specialize in property management for multi-family and single-family properties and can help you make the most out of your rental properties.
Contact us today to learn more about our services and to get started with your property management!