When looking for a property management company, it's natural to have questions to see if they are suited to your needs. Asking the right questions increases your chances of finding an efficient, reputable, and distinguished property management company. Below are a few questions you may have about property management companies before hiring them.
The first question that comes to mind is what services do you provide as a property management company.
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full-service property management company should be able to provide all the services needed to give you peace of mind. This means providing monthly reports of maintenance or repairs, support for tenants and owners via email, phone, or online, year-end owner tax statements, collect rent, collections and eviction coordination. One of the most important questions you can ask before hiring a property management company.
Finding good tenants can be a delicate process. It's well known in the industry that long-term tenants are highly sought after, as this can significantly improve your bottom line. It should not only be important to find tenants for your vacancies. However, a property management company should be able to find the best tenants available. This means having a screening process to make sure only the finest tenants are contacted. This means finding tenants who can pay on time, have no prior evictions, and have a clear history to be considered.
Vetting references is important when looking for tenants. Landlords will collect rental references from interested tenants through the application process. Many landlords will want a comprehensive background check on the applicant's tenant. This will include calling the tenant’s references. Fake references will result in a rejection of the application.
Terminating a property management company involves not providing the promised services or a breach of contract. Some owners aren't sure when it's time to switch property management companies. Entering into a property management agreement means the property management company represents the owner of the rental. The property management company becomes legally responsible for managing the property.
A bad company will be called a “rent collector” by the tenants. This usually means the property management company has poor response times and awful property maintenance practices. They generally lack knowledge of the local laws and ordinances and often lack the resources to provide vetted tenants and deal with legal litigation.
There are many ways to see if you’re dealing with a quality property management company. However, there are some key elements to keep in mind. Professional relationships and good communication are important for both the tenants and the owners. Though having good relationships with tenants is important, maintaining professionalism is critical. Ensuring policies are in writing and well communicated to each tenant can eliminate miscommunication between tenants and landlords.
Low vacancy rates can distinguish a good property management company as well. Making sure the vacancies are filled with quality tenants is equally important. A vacancy rate of 3% is ideal and considered a healthy representation of the market balance between tenants and owners.
A good property management company will also have the resources to provide a complete proof leasing agreement and have legal knowledge of the area where the rental property resides.
A property management company should be a time saver and investment asset.
Understanding what property management companies charge can help you decide whether or not you need one for yourself. If you need help finding the right property management company to hire or need help deciding if you need a property management company at all, consider calling us at (562) 888-0247, or feel free to fill out our
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