Do you want to get the best out of
your real estate investments? Are you planning to hire a property management company?
Well, hiring a great property management service is one of the most important
tasks you will undertake to manage your properties without any stress.
Nowadays, many companies offering
property management services are out there in the market. However, it is a
crucial decision and you should not hurry in making this decision. When it
comes to hiring any kind of services, cost is the prime factor considered. In
general, a property management company charges a monthly fee to manage your
property. The fees may vary depending on various factors. It can range from 5%-
20%. Remember, cheaper does not always mean of lower quality. You can find
companies that offer more services for reasonable rates. Search for the one
that suits your needs and fits in your budget.
Here are some questions that will
help you narrow down your search and end up with a well-informed decision.
Questions to ask while hiring Property Management services
- How many years of experience does the property
management company have? Ask the company to provide 3-5 references of real
estate investors that have been using their services at least twelve months
and are happy with the service.
- Ask the company, where and how they market
available properties? You can inquire how effective the company is at
filling vacancies. A property management company having an effective
marketing campaign will definitely help you achieve your goals.
- Ask the company about the methods they use to
qualify tenants? What type of background checks do they do? It is advised
to have a property management company that can provide records of
satisfied customers.
- Inquire how the company handles cases of delays
in, or failure to pay, rent? It is better to skip the property management
company which is “flexible” with tenants about rent payments. Look for a
property management company that is courteous and fair. However, it should
enforce your rental contract with your tenants. After all, getting timely
payments is an important aspect for you.
- Ask how many other properties the company manages?
How many resources the company has? If the company has a limited staff and
a large number of properties, then the company may not be able to pay
attention and manage your property. You should look for a committed
company that offers good services efficiently.
·
Inquire with
the company about the management fees they charge.
1.
Showings
2.
Advertising
3.
Signage
4.
Management Fee
5.
Leasing Fee
6.
Renewal-Leasing Fee
7.
Typical Move-out/Move-in expenses
8.
Repair/Maintenance
9.
Inspections (extra or included)
10. Evictions
You have to consider various
aspects while calculating the fees. However, it should be within your budget.
- Does the company charge a lease commission
separately? In general, the majority of companies charge a percentage of
the monthly rent as the commission for lease renewals and new leases.
- Ask the company if they charge a vacancy fee? Many
property management companies charge a vacancy fee for marketing and advertising
endeavors.
- Inquire who will handle yard maintenance and
repairs. If the company handles it, ask with whom do they work and how are
they rewarded? Do they charge by the time or job? Many experts suggest paying
by the job.
- Ask the company if they have their own rentals too?
You can gain knowledge about the industry by learning how a company manages
properties. Communication is
the most essential aspect to consider while hiring a property management
company. The company should be responsive to both email and telephone. Getting
a response back in a timely manner is a very good sign of a proficient and
dedicated company.
For some companies, property
management has become a business about markups and hidden fees. All the above
questions will help you find a good resource to manage your property well.
© Global Realty & Investment Corp
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