Choosing the Right Property Management Company

According to My Smart Move, around 45% of landlords manage their own rental properties.

If you're one of them, you're probably all too familiar with the troubles of being your own property manager. Lengthy tenant screening, rent collection, property maintenance, tenant conflicts—the list goes on.

By hiring a reliable property management company, you can outsource all these responsibilities without losing any of your landlord and homeowner benefits. Wondering how to do that? Keep reading till the end to learn how to pick the right property management company for your needs.

Why You Need a Property Management Company for Your Rental Home

As a landlord and homeowner, you may wonder: why would I need a property management company for my rental home? What kind of responsibilities would they handle?

Let's look at a few reasons to hire a professional property manager.

Efficient Tenant Screening: Property management companies handle the task of finding and vetting tenants for your rental.
Timely Rent Collection: With professional management, you can rely on consistent and on-time rent payments. Forget all about the hassle of chasing tenants for rent and enforcing payment deadlines.
Property Maintenance: Property managers oversee regular maintenance and repairs to preserve your property's value and ensure tenant satisfaction.
Expert Tenant Relations: Property management companies can also mediate tenant concerns and enforce lease agreements when necessary. This will reduce conflicts and create a positive renting experience for everyone involved.
Legal Compliance: Professionals keep your rental property compliant with local regulations and housing laws. You won't have to worry about the risk of legal disputes or penalties.
24/7 Emergency Response: Property managers are available 24/7 to address emergencies promptly, whether it concerns property damage or tenant safety.
Financial Management: Property management businesses can also handle budgeting, accounting, and financial reporting, as long as it relates to your rental property.

How to Choose a Property Management Company for Your Rental Home

Now, you know exactly what the right property management company can do for you. The question is, how do you know which one is right for you?

With so many property managers dominating the market, it's hard to pinpoint one that meets all your requirements. Here are some tips to make the process easier.

Define Your Needs

Before selecting a property management company for your rental home, ask yourself: what do you need from their services? You can take into consideration:

The size and location of your property
Your budget
The level of involvement you desire

Then, think about the exact services you're willing to pay for. Property managers handle a broad range of tasks, including tenant screening, rent collection, maintenance, and financial reporting.

Next, does your property come with any unique challenges? Perhaps you have specific preferences for how your property is managed, such as eco-friendly practices or certain communication channels.

Regardless, you'll need to clearly define your needs and priorities upfront. This way, you can narrow down your search for a property management company that aligns with your requirements.

Research Local Property Management Companies

The next step is to research local property management companies through online directories, referrals from other landlords, or real estate associations.

This step is crucial as you'll be evaluating their experience, reputation, and track record in managing properties similar to yours. You may find reviews and testimonials from past clients to gauge their expertise.

Other than that, read up on their range of services, fees, and communication practices. The last thing you want is for some hidden fees to exceed your budget in the end.

Most importantly, contact several companies to ask about their services, request references, and schedule interviews. As the saying goes, don't put all your eggs in one basket.

Conduct Interviews

Once you've finally scored interviews with some of your top choices, that's where the real research begins.

First and foremost, ask about their credentials, such as certifications from professional organizations such as the National Association of Residential Property Managers (NARPM) and the Institute of Real Estate Management (IREM). You can also ask them questions like:

Do you have experience managing properties in this area?
How familiar are you with local rental market trends?
What are your tenant screening processes, maintenance procedures, and communication protocols?
Can you tell me a bit about your fee structure and any additional charges?
Can you provide references from current clients that would give me some insight into your performance?
How often do you conduct property inspections?
Is there a minimum contract term or termination clause?
Do you offer a satisfaction guarantee or service level agreement?
How do you handle tenant complaints or disputes?
What is your process for handling evictions, if necessary?
Can I visit the properties you currently manage to see firsthand how they are maintained?
Can I access online portals or reports to track rental income and expenses?
How do you handle emergencies or after-hours issues?

Review the Property Management Agreement

When reviewing the property management agreement, don't forget to read the fine print.

First, make sure that the agreement clearly outlines the range of services the property management company will provide. It should cover everything from tenant screening to rent collection and property maintenance.
Pay attention to the fee structure – management fees, leasing charges, and any additional expenses.
Also, verify the contract's duration and termination clauses.
You should clarify both parties' responsibilities, including your own obligations regarding property upkeep and compliance with local laws.
Moreover, make sure that the property management company carries the right insurance coverage to protect both parties in case of accidents or legal issues.
The agreement should also have provisions related to dispute resolution.
Lastly, keep an eye out for any additional clauses that may impact your rights or obligations.

If anything seems unclear or ambiguous, do not hesitate to clarify—better yet, hire a legal advisor to do it for you.

Takeaway

Choosing the right property management business for your rental home is a tricky process, but it ensures your peace of mind as a homeowner. With the help of our complete guide, you can make an informed decision.

Don't let the stress of property management weigh you down—let our experts handle the heavy lifting! Contact us today and find suitable property management for your rentals.