How to select a property manager for your rental property.
The previous article “Should I hire a property Manager” discussed some of the items to consider in deciding if you want to manage your rental property yourself, or hire a professional. So, if you decide to have a rental property manager manage your rental property, how do you go about choosing?
- Check Licensing. Many states require licensing to be a property manager. You can see what your state requires here: https://www.allpropertymanagement.com/resources/property-management-laws/. Your property manager’s licensing status should be displayed on business cards, marketing materials, and websites.
- Insurance. You should expect your property manager to carry liability insurance at the least, preferably professional liability insurance (errors and omissions) too. You can ask them to provide proof of coverage.
- Read Reviews. There are many places to look for business reviews, including Google, Facebook, and Yelp. You do not need to expect to see reviews everywhere, because the property manager may not be interested in maintaining a presence on the myriad of sites. They should be somewhere though. Don’t just look at the number of stars! Read the reviews. It is not uncommon for a property manager to get a bad review from an evicted tenant or somebody spiteful. Look for the responses to the bad reviews. They may be blunt or offer explanation. Remember, that sometimes a property manager needs to handle difficult situations on behalf of the owner. Does it look like the property manager is working to protect the interest of the owner?
- Consider Size and Location. A single-family house is not the same as a 40-unit apartment building. An apartment in the city is not the same as a house with 2 acres and a septic system in the country. Some property managers will claim to do it all. Maybe they do. Maybe they don’t. Look at their location, and what dominates their website.
- Get Recommendations. If you have somebody knowledgeable, a recommendation or referral goes a long way, but still do your homework.
- Communication. Find out how your property management company will be available to you, and also to tenants.
- Technology. Make sure your property management company has a website where both you and your tenants can log in to manage accounts. It should be a secure website (https, not http: here’s why: https://www.entrepreneur.com/article/281633 ) It should allow for electronic funds transactions.
- Fees. There is an expression, “you don’t price shop your cardiologist”. That is true, but you still do your due diligence. If you are going to choose discount pricing for your property management company you should expect discount pricing results. That does not mean you need to buy the most expensive either. You should read your property management agreement, know your fees. Look for good service and results at reasonable pricing.
A good property management company will help you protect your rental investment, and work to generate income on your behalf. It can be a great relationship if you do your homework on the front end.
This article was originally published by at https://www.thekeytorentals.com/
Thank you for reading!