If you are considering hiring a property management company, then you’re probably aware that not just anyone is cut out to be a property manager.
It takes someone with knowledge, experience, and drive. Successful property managers should possess certain traits that help them stand out from the rest.
Important Qualities
One of the most important qualities is that they should be a good communicator. The last thing you want is someone that doesn’t keep you in the loop on your home. The manager needs to be cordial, but also firm. They should be organized, detail oriented, truthful, calm, and passionate about what they do.
It might be a challenge to find a property manager with all of these great qualities, but they are definitely out there. It might take some trial and error, but it starts with asking the right questions.
What to Ask
Finding the right property managers starts with asking the right questions. Here are some important questions that you can start with to help in your search.
1. Are you Properly Licensed?
This is a great place to start. You want to work with a property management company that stays up to date on all licenses. That way, you know that they run an ethical business. Different states have different regulations, so you may want to brush up on the regulations in your area before you interview a property management company. You must make sure they have the appropriate licensing to manage your property. Also, are they their own real estate broker or do they hire a broker’s license? In Florida a property management company must have a managing broker licensed to the business.
2. What are the various services that you offer to your clients?
This is a good follow up question to the above. A company with a lot of experience will know that property management is more than just collecting a check each month after a tenant is found for the property.
The company should be able to market, lease, manage, and sell your property with no issues or hold-ups. You will also want to make sure that the company contracts professional and licensed and insured vendors, know how to conduct proper inspections, and be able to provide you with extensive screening on tenants.
3. What are the management fees and/or pricing options when the property is being rented?
This question will let you know what your average monthly fee will be, if you have one. Some companies go with the flat rate offer, and others will go off of the rent amount. Other companies may offer three different levels of pricing. These include: a lease only plan, a standard plan, and a premium plan.
However, the best option is usually going with the plan that goes off the percentage of collected rents. This will ensure that your property manager is motivated to fill the vacancies because they won’t get paid unless there are tenants renting the properties.
This will also encourage them to push for higher rental rates because this will help their bottom line as well. Keep in mind that companies that offer a flat fee will be getting paid the same amount no matter what. Would this really motivate them to get you the highest rent?
4. How do You Collect Rent?
When you hire a property management company, one of its core services should be collecting rent. They should have a convenient option that makes it easy for you to get paid. Those property management companies have an automated payment system. Renters can pay the rent online, and with a quality software solution, you can make it easier for your renters to stay up-to-date on their payments. There are some renters who might want to pay with cash or a check, so make sure the property management company has alternative solutions set aside.
5. Under which conditions can I cancel my contract?
You obviously never want to get into a contract that you can’t get out of. There are some property management companies out that they will try to lock you into a contract because of how much it benefits them.
However, as mentioned above, there are also companies that want to actually keep your business while still providing you great contract terms. If the company you are speaking to only provides contracts that are inescapable, move on to the next. There are plenty of companies out there that care about you and your success.
6. Are there any other miscellaneous fees that you will charge for managing my property?
Hidden fees are no joke. Some companies you come across may try to get you to sign a contract promising a low rate. However, if it sounds too good to be true, it most likely is. Once they get you to sign, the payment you have in your mind is bound to increase with various additional fees. Transparency is key for you as the property owner.
Deciding which property management company to go with can be a daunting task, but it doesn’t have to be. Now that you know of some key traits to look for, and know which questions to ask, it may make your section process a bit easier.
Bottom Line
If you have been considering hiring a trusted property manager lets connect and see how we can assist you with your investment property.