Juggling multiple properties as a real estate professional can become time-consuming and stressful without help. There are currently over 296,000 property management businesses in the US, and the industry is booming. An experienced property manager can help you turn your real estate business into a success.
Not sure who to hire? Read on for the tips you need to find a good, reliable property manager today!
Streamline your search by turning to other real estate professionals, friends, or family members. Ask if they can recommend a local property management company. If they can, ask about their experience working with a property manager.
For example, you can ask:
- How long have they worked in the industry
- Did you encounter any problems
- What services do they offer
- Are you satisfied with their work
- What credentials do they have
Everyone has unique preferences. Accept recommendations with caution. While they can help you begin your search, you should also gather your own research.
Otherwise, begin your search online. Use Google or check an online directory to build a list of companies in your area.
Once you have a list of property management companies to choose from, look for online client reviews. Reading online reviews will ensure you find a reputable, reliable business.
Look for comments that claim the company wasn’t helpful, professional, or responsive. Remove those companies from your list. Use online reviews to narrow down your options.
Reviews will help you determine which companies on your list to avoid or prioritize.
Look for Experience
Determine how long each property management company has operated in the industry. Find a long-standing company and team with years of experience. You can reach out to the team at reedyandcompany.com to simplify your search.
A long-established business has likely outlasted other property management companies during that period. They’ve likely earned the respect of other real estate professionals.
Look for a team that has experience relevant to your needs. For example, perhaps the company only has experience with residential properties. If you need help with other properties, you’ll know to continue your search.
During the interview process, ask about the areas where the company has been the most successful. Question them about their challenges and ask where they think they can improve. Determine if the company has any case studies that prove they’re capable.
When selecting a property manager, learn about their time in the industry. Ask how many properties like yours they’ve managed in that time.
They’ll leverage their experience when problem-solving for your property.
Consider visiting one of the properties the company manages. If the property looks shabby, consider it a red flag. The property manager should keep the grounds and building pristine.
You can also talk to some of the tenants. Ask if they’ve had any negative experiences with their property manager. If they have, ask how the problem was resolved.
For example, maybe it takes months before someone responds to a maintenance request.
If the property manager doesn’t take the time to help the tenants, remove that manager from your list of options.
Some states require property managers to obtain real estate broker’s licenses or property management licenses. You can verify that they have an active license through the local Real Estate Commission.
Before making a final choice, determine if the manager has any professional certifications. For example:
- The Institute of Real Estate Management
- The Community Associations Institute
- The National Association of Residential Property Managers
A reputable property management company will have the necessary certifications. However, certifications don’t always indicate excellent service.
Consider Vacancy Rates
An excellent property management company will help reduce vacancy rates. Otherwise, your property won’t generate any income. Ask each property manager how they plan to help you fill vacancies.
Ask questions about the properties they already manage. If the vacancy rates are higher than 2%, consider it a red flag.
Ask them what the market average vacancy rate is in the area and how it compares to the properties they manage.
As you begin narrowing down your list of options, schedule interviews with three local property managers. Ask questions about their education, certification, experience, services, and fee structure.
Determine if they’re knowledgeable about local laws. Question how they collect rent and maintain properties. Learning about their process will help you find the right fit based on your needs.
If the manager isn’t transparent about their work, continue searching.
Ask each property manager about their fee structure. Determine how much their services will cost on a monthly or annual basis.
Ask if they charge a monthly flat fee or expect to receive a percentage of the rent they collect.
You should also ask if they’ll charge you when properties are vacant. Make sure they don’t charge additional fees for services you don’t need. Companies should remain transparent about their contracts and fee structure.
Make sure the contract lists a start and end date.
Don’t choose the cheapest property management company available. Instead, review your notes to make an informed choice.
Find a Reliable Property Manager Today
Working with the right property manager can help your real estate business succeed. Use these simple tips to narrow down your options. With these tips, you can rely on experienced, qualified real estate professionals this year.
Start your search today.
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