By Jeff Lambino
•
04 May, 2024
Owning rental properties can be a fantastic way to build wealth, but managing them yourself takes time, effort, and expertise. That's where property management companies come in. However, simply choosing the cheapest option can backfire and hurt your bottom line in the long run. Here's a roadmap to navigate the selection process and find the perfect partner for your investment: Why Price Isn't Everything While cost is a factor, a seemingly "cheap" company might nickel and dime you with hidden fees, leading to a higher overall expense. Look for transparency: a 10% fee with no surprises might be a better deal than a 6% fee riddled with additional charges for leasing, maintenance, or late payments. Research, Interview, and Repeat Utilize Google searches and review platforms like Yelp, Facebook, and Google My Business to understand their reputation. Schedule interviews with at least two companies and inquire about their experience, the number of units they manage, and for larger organizations, the qualifications of their staff. The Lease is Key: Protecting Yourself and Your Property A well-crafted lease agreement protects both you and your tenants. Reviewing it carefully addresses potential issues like unauthorized occupants, pets, early termination, security deposits, lease breaches, late payments, evictions, and property maintenance responsibilities. Understanding Their Processes Ask detailed questions about the company's protocols for handling key areas: Maintenance: How do they handle repair requests? Do they have a network of qualified vendors? Outstanding Payments: What's the process for collecting late rent? Evictions: How do they handle evictions in case of non-payment or lease violations? Turnovers: What's the process for tenant move-out and readying the unit for new occupants? A professional company will have clear and documented procedures for all these situations, ensuring consistency and efficiency. Getting the Inside Scoop Request permission to speak with current property owners and tenants managed by the company. This allows you to get firsthand accounts of their experience. Don't be discouraged by a few negative reviews – some might stem from problematic tenants themselves. Ask the management company for their perspective on any complaints you encounter. Filling Vacancies Quickly Vacancies can diminish your profits. Inquire about their marketing strategies. Do they create detailed listings with high-quality photos that showcase your property? Ask for evidence of their success in minimizing vacancy. The Road to Success Starts Here This guide equips you with the knowledge to make an informed decision. It lays a solid foundation for a successful property management journey. If you have any specific questions about property management, feel free to reach out!