Do you have a robust real estate portfolio?
Congratulations! You’ve taken the first step. Now it’s time for you to grow and add to your portfolio.
The number of renters in the United States is continuing to increase, so now is the perfect time to expand your business.
If you are thinking of hiring a property management company to help, there are a few things you need to know.
Keep reading to learn five things to look for when picking your business partner.
1. How Many Properties Do They Manage
The first thing to ask a potential management company is how many properties they manage.
A good employee with the right tools can typically manage between 30 and 40 units, so you want to make sure that they are equipped to handle your units.
2. How Often Are Inspections Performed?
Your property needs to be inspected from time to time. Ask your management company how often they will be performing them.
Most companies will be accommodating to your needs. But if you run across one that complains about what your requirements are, then you may need to look for another company to manage your rentals.
3. What Reports Do You Get
A good management company should keep you updated on what is happening with your properties. Ask about the type of reports you get and how often you get them.
Make sure you receive details on any late payments, repairs, and any other relevant information.
4. How Are Tenants Found?
Do you have any particular standards for tenants that you like? Make sure your property manager can hold to your standards.
Ask about tenant screening procedures, so you know that due diligence is being done.
Other companies will send you potential renters so you can sign off before moving someone in.
Whatever the procedures are, make sure that you are comfortable with them or you may run into problems in the future.
5. Figure Out the Fee Structure
Make sure you ask about the fee structure you will be committing to paying.
Fees typically range from 7% to 10%. But you need to know if that fee is from total rental income or potential rental income.
Here are some of the other fees that you could see in an agreement:
- Vacancy fee
- Administration fee
- Set-up fee
- Leasing fee
Costs can add up, so make sure you can afford to pay them.
6. Ask for Referrals
Before you commit to anything, ask the people you know and the management company for referrals.
Referrals can let you know what it is like to work with a particular company. They will be able to tell you what problems that came up, how well they communicate, and how well they resolved the issues that come up.
Hire a Property Management Company to Help
You don’t have to go at it alone. When you hire a property management company, you’re getting a partner that will help you make your real estate business a success.
The time you save managing your properties can now be spent on activities that will build your business even more.
Are you looking for a management company to help? Contact us to learn how our services can help!