Rent Responsibly: How to Find a Professional Property Management Company
Posted on: 08/21/2018
Are you looking for an easy way to make extra money? If you have a second home or vacation property, you could create a substantial amount of passive income by renting it out.
There are people who are able to travel the world and make money by simply renting out the property they own.
Some people would love to make extra money with the property they're sitting on, but they aren't able to devote enough time and attention to their second apartment or home.
Luckily, there's an easy way for people to make money off of their extra property and take a hands-off approach to it. All they need is a property management company.
If you find the right property management company, you'll be able to sit back and watch the money roll in as they handle the day to day details of renting out your property.
Do you want to learn how to find a rental management company that can meet your needs? Read on to learn more.
How To Find The Perfect Property Management Company For Your Needs
Property management companies can make renting out your property easy. But in order to reap the benefits, you need to choose the right one.
The right property management company is going to need a solid mix of professional expertise and people skills if they're going to maintain your rental.
When you're searching for property management companies, make sure to follow these essential tips.
Think About Specific Services
Everyone has a different opinion on what property management entails.
Some people may view it as simply having someone around to handle any tenant needs. Others view it as a much more in-depth and involved job that handles every aspect of managing the property.
If you really want to find the right rental management company, take time to think about what you want them to do.
We have a handy list of services and duties you may want your management company to handle. Take time to read them and think about which tasks mean the most to you.
Marketing The Property For Rent
Some rental management companies will go above and beyond to make sure properties are ready to be viewed and sold.
You may want a company that can handle all cleaning and preparation for showings and move in day. This can be helpful for property owners that don't live near the property and can't easily pop in for work.
You can find a company that handles all of the advertising aspects of renting out your home. This can include printing and hanging signage, making posts on popular websites like Zillow and Craigslist, and handling calls from interested renters.
Tenant Screening And Selection
Finding the right home to rent can be tough, but finding the right people to rent it to can be especially tricky. You're going to want renters that will pay their rent on time and respect your property as if it were their own.
You could find a property management company that handles the hassle of finding a good tenant.
The company can perform any needed background and credit checks and can follow up with previous landlords. They can also handle contacting applicants that haven't been picked.
Upkeep and Repairs
If you hire a property management company to handle your rental properties, you should expect to have a rental that's pristine and ready to house renters at any time.
Some management companies may contract out certain employees like maids or electricians to handle the upkeep of the property. Others may only choose to provide certain services like lawn care, but expect tenants to handle minor repairs.
Also, take time to ask about how they handle property renovations. Some management companies don't handle big renovation projects, others will insist on performing large repairs themselves.
Rent collection goes beyond cashing checks at the bank. A solid property management company can handle everything that goes into collecting rent.
They'll keep track of payments and immediately alert tenants if they're behind or have missed a payment. They'll enforce late fees and send out late payment notices so that you have documentation.
If you have an issue with a renter you'll need a lawyer to help you navigate the court system. You may need a lawyer, but you shouldn't overlook how helpful documentation from your management company can be in court.
If you ever have to evict a tenant or sue them for property damage, testimony from the management company will be very helpful. They should be able to document any damage and disturbances that occur with troublesome renters.
Some should be able to file important paperwork so they initiate and help with court proceedings. In some cases, they may even be able to be your legal stand-in when you're in court.
Get Plenty Of Referrals
Word of mouth and referrals can help you find the property management company of your dreams.
Are you still in contact with your realtor? They may know a ton of eligible companies in the area. Also be sure to ask friends that have investment properties in the area if they can recommend someone.
After you've asked some professionals and friends, do research on your own. Check out your state's Real Estate Commission website and the Better Business Bureau to make sure the companies you're looking at are properly licensed and have no complaints against them.
Also be sure to check Yelp and their Google Business page. Any client reviews can tell you a lot about the company you're thinking of hiring.
See Their Current Work
Referrals and reviews are a great way to learn about the company. But if you want to see how they'll care for your rental property, you should ask to see some of the properties they currently manage.
Being able to see the property can be a little more helpful than going off of reviews and references from the company. Some reviews or references may be fake, but your eyes won't lie to you.
Check to see how the property looks when you first arrive. If you notice an overgrown lawn that's full of weeds, that may be a sign that the company doesn't handle outdoor maintenance properly.
Take time to walk around the property and take note of any damage you may see. A cluttered home is a sign that there's a messy renter inside. A home that has badly painted walls or shoddy plumbing is a sure sign of a bad management company.
Ask About Tenant Retention
When you hire a company to manage your rental property, you're giving them a lot of control over your investment.
A rental property management company that can't seem to keep tenants isn't one you want handling your property. That's why it's important to ask about the renter retention rate and how they plan on keeping your property occupied.
Ask about how they plan on staying in contact with renters and how they handle issues. See if they have a plan on how to handle renter conflicts, and how they'd go about filling your property if people leave.
Meet The Actual Property Manager
When you're working with large property management companies, you're more likely to meet with a sales representative than the actual manager of your property.
When you're searching for the right company to use, be sure to spend some time talking with the person that will actually be managing your property.
Meeting the person that will be helping your tenants can help you establish a relationship with them. You can work on building each other's trust and you'll learn about their personal management style.
Meeting with the person beforehand can also alert you to some red flags that can arise.
Excellent property management needs to have the right combination of professional expertise and people skills. If you choose an unfriendly or gruff manager for your rental property, don't be surprised if tenants complain about them.
Take note of how the property manager greets you and if they seem friendly. Ask about their personal experience with managing properties, and don't be afraid to ask how they'd handle certain troublesome scenarios.
Ask About Additional Help
We mentioned before that it isn't unusual for property management companies to contract out work to other professionals. When you're choosing rental management companies, ask about work they hire out for.
Some property management companies like to work with preferred businesses. Be sure to ask them for the names of businesses they tend to work with and look at their reviews to see if people like their services.
If you're uncomfortable with other unknown people doing work on your property, make it known that you'd prefer to know whoever is going to be working on your property and handling tenants.
Now that you know how to find the best property management company, you're ready to find someone to manage your extra properties and help you make some money.
We're always happy to talk business. Be sure to contact us today so we can talk about the best way to handle your property means.
While you're waiting for us to make the connection, take some time to browse our FAQ page so you can learn more about us.