Purchasing property and renting it out can be an excellent long-term investment. But fulfilling the tasks of a landlord can be very time consuming, which is why many people who own investment properties opt to hire a property management company, especially if they own more than one rental. Property management companies can be very useful, but it is important to choose the right one. Consider the following things before hiring a property management company:
Experience and Number of Employees
One important thing to take into account when hiring a property management company is how many properties they manage and how many employees they have on staff. You want to work with a property management company that is experienced, but it is important to make sure that they are not over-extended with too many properties and not enough employees to properly manage each one.
Rental properties are an investment, and if you own a rental property you most likely want reassurance that the tenants are caring for the property. One thing you should ask a property management company is how often they inspect a property that they are managing. In addition to ensuring that a tenant is not abusing a property, regular inspections can also make you aware of any maintenance that needs to be done; in many cases, home maintenance can prevent major repairs that you will have to pay for.
One of the keys to a successful investment property is to keep it occupied with tenants that are paying rent. Almost all property management companies take on the task of finding tenants for a rental property. Before hiring a property management company, make sure you ask them how they market the properties that they manage and how they screen tenants. It is also a good idea to ask what percentage of their properties are currently occupied and how long it usually takes them to find new tenants after a lease ends.
What is Included
Many property management companies are very transparent about their rates, but it is essential to know what services you will be receiving by paying their fees. Prior to signing a contract with a property management company, make sure that you clearly understand what services they provide for property owners. To protect yourself, ensure that the contract that you sign lists every task that the property management company is responsible for doing.