Tons of time and money goes into managing a property. Therefore, a bad property management company will only accelerate the time and money required to perform the involved tasks.
It is helpful to find a property management company that is efficient in maintaining the property, finding good tenants, and running things smoothly. However, not all property management companies are made equal. Therefore, you should be keen to notice some red flags and avoid hiring property management companies with characteristics like these.
Depending on your locality, property management companies should have licenses. Find out the licensing the property management companies should have before hiring them. Only work with a company with a real estate license and any other required documentation.
These documents will help you to build trust with the company and avoid fraudsters. In addition, you will gain peace of mind working with a credible company that meets all of the required real estate parameters.
The communication behavior of a property management company you hire will reveal itself in your previous interactions even before you close the deal on working together. Some of the habits that you should be keen on are:
- Slow response time to emails
- Unanswered messages
- Difficulty in reaching them during office hours
Communication is a two-way street and can make your experience with a property management company miserable. For example, if you own real estate in a high flood zone area, your property may be vulnerable to water damage of different kinds. Many investors have to sell a house fast because the property issues have been neglected for so long. Yikes.
Make sure that your property management company communicates effectively with you when dealing with major repairs and issues from water damage. If the issues aren’t tackled immediately, it could spell trouble for your house.
The property management that catches your eye may have good reviews, clear pricing, and affordability, but one important aspect that you cannot overlook; is their ability to uphold internal maintenance.
Maintenance is one of the costliest activities the company has to budget for, which means some avoid it. If you notice that maintenance is not their priority from your research, you should consider searching for a better company. Poor maintenance can cost you more than you have budgeted for.
Lack of Transparency
Having a property is a huge investment that you cannot gamble on by choosing a property management company that is not transparent. Therefore, before selecting a property manager, part of your research should identify whether the company reports when they collect rent and that they only charge for performed work.
- Check the number of reviews on the company website, the longer the existence of the company the more the reviews.
- Request to speak to former and current clients, a transparent and honest property management company will not hesitate to provide this.
- Choose a company that has posted all their prices on their website as this means they treat clients equally.
In hiring a property management company, you should have some tips in mind. For example, consider the advantages of hiring a local property management company because they have practical experience and knowledge of the local market within which your property is situated. In addition, consider hiring one that has its offices close to your property. It will be convenient for them to operate this way while managing your rentals.
Why does Hiring a Property Management Company Can Earn You Money?
A Property management company has specific tools and knowledge that enables them to set the rent price matching the market also minimizing the expenditures & vacancy rate.
What To Look For While Hiring a Property Management Company?
2. Ability To Communicate
3. Tenant Screening Process
5. Vacancy & Turnover Rates
6. Local Knowledge
7. Use of Technology