For an investment to be profitable, it must be managed efficiently. However, choosing a property management company that will properly manage your rental property, can be challenging. The following tips compiled by Eric Carvaial of Top 7 Business, will help investors select a property management company that is the right fit.
- Choose a company that is knowledgeable of the local market. Make sure the company knows the local rental market. Knowledge of the local market means that your property manager knows what renters are looking for. If the property management company is a good one, they will think of the property as if they were a renter. Making smart and cost conscious recommendations to the owner that will increase overall return while improving the property so that it becomes more desirable. This will help increase rental rates, lower turnover and decrease vacancy. Your property management company should make sure that your property always stays competitive in the leasing market.
- Set up a meeting with the property manager and make a plan. If the property management company you are choosing is a good one, they will set up a meeting with all new property owners and make a game plan. Getting to know your property manager will help improve the interaction and can give both the owner and the property manager a good idea of how they will work to improve the return for that property. Designing a property plan that is right for each owners needs is the key to successful property management.
- Ask your property manager for the names of three references. Nobody can give a better picture of the service, than a current customer. Ask the property management company to give you the names of three clients with similar type properties. Get in contact with those people and ask them questions that you feel are important to the success of your property. They can tell you best and can usually give a good picture of the strengths and weaknesses and their contentment with the service
- Find a property manager that offers great customer service. Wouldn't it be great if you could always get a hold of your manager whenever needed? Choosing a property management company that strives to offer great customer service, (and delivers) is the way to go. Good customer service is something you should expect. Keeping owners informed about the market and how their property is being managed is necessary in any property management relationship.
- Find a property management company that keeps good records. When it comes to investment property, keeping expenses organized can be a difficult task. At the end of the year when tax season comes up, all of your income and cash flow should be easily accessible and in the correct order to make your tax paying easy.
- Make sure to find a property management company that has a good relationship with the tenants. A happy tenant leads to lower turnover, and thus less re-letting fees. Happy tenants will also make releasing much easier. A reputable property management company with a good name in the eyes of the tenant is not easy to come by. Choose a property management company that cares, it will increase your property’s return.