Owning rentals is an excellent opportunity to earn passive income. However, you need to have a lot of time on your hands to manage all of your properties. For some investors, handling tenant relations, performing inspections and maintenance, and collecting rent add up to too many tasks. In that case, hiring an experienced property manager can ensure your tenants are taken care of, cash flow is accounted for, and your property is well-maintained. If you’re wondering how to find a good property manager, just keep reading.
Why Do You Need a Property Manager?
Property management can help your rental business in several ways. Before hiring, it’s essential to know the benefits of management and what it can do for you. That said, here are some of the main reasons why hiring a property manager can be great for your rental business.
- Fewer Vacancies
- Lower Maintenance Costs
- Reduced Liability
- Less Stress
- Quality Tenants
As a landlord, you want to keep all of your rentals occupied at all times. Luckily, a good property management team can keep your rentals filled with quality tenants. Additionally, your property managers can help prepare vacant units for new tenants, determine optimal rental rates, and help market your property to attract tenants quickly.
Lower Maintenance Costs
A huge part of owning rentals is handling maintenance requests promptly. However, getting to every request on time can be challenging if you own several rental properties. That said, when you hire a property management company, they can assist you with finding professional maintenance and give you a network of experienced vendors and contractors.
Following Fair Housing Laws is crucial when you own rental properties. That said, professional property managers know landlord-tenant laws well and can navigate legal situations to save landlords time, money, and stress. Additionally, property managers can assist with evictions, lease issues, and rental registration.
Owning rental properties is undeniably stressful. After all, landlords have an overwhelming amount of tasks to complete each day. However, with the help of professional property management, landlords can avoid stress and have more time to themselves. Similarly, with a qualified group of professionals handling your rentals, landlords can live wherever they want without worrying about day-to-day tasks like maintenance, inspections, and collecting rent.
Landlords don’t want just anyone living in their rentals. Instead, who wouldn’t want quality tenants that pay on time, report damages promptly, and take care of the unit just as you would? That said, hiring property management to do tenant screening can ensure that your tenants are respectful and trustworthy.
How to Find a Good Property Manager
To find a good property manager, you must do a little digging. The right manager or group of professionals won’t just fall into your lap without a little work on your part. Here are a few tips if you’re wondering how to find a good property manager.
- Do Your Research
- Search Locally
- Interview Multiple Candidates
- Get Referrals
- What’s Your Personal Impression?
- Only Hire Licensed Professionals
Do Your Research
Thanks to modern technology, there are endless amounts of information at our fingertips. Just as you use the internet to search for local restaurants and coffee shops, you can use the internet to find property management companies as well. A simple Google search is the best way to start looking for a management company. Then, you can narrow down your options as you search. That said, when you’re looking through potential candidates, make sure you look for these critical pieces of information:
- Services They Offer
- Management Fees
- Contact Information
- Client Testimonials
- Tenant Reviews
- Staff Information
- Special Features for Owners/Tenants
In terms of professional property management, it’s crucial to understand your local market. In other words, know what services are available to you and compare them with other local competition. After all, the best property managers have experience in understanding:
- Market Demographics
- Vendor Relationships
- Laws and Licensing
Your Philadelphia property managers must consider market demographics and understand who your tenant pool is. Additionally, finding a property management team that has relationships with local vendors is excellent, so your property can receive the attention that it needs.
Finally, each jurisdiction may have different laws regarding rental properties. So, it’s crucial for your management team to be well aware of local laws, including rental licensing, inspections, and lead certification.
Interview Multiple Candidates
Before settling on the first management company you find on Google, meet with several candidates and ask questions. After all, finding the best property manager involves gathering as much information as possible about them. So, make sure you reach out to potential contenders and ask them some of the questions listed below.
- How long have you been managing rental properties?
- What’s included in the monthly management fee?
- How many properties does one manager oversee at a time?
- Is the management fee based on rent collected or rent due?
- What are standard applicant requirements?
- How do you handle the screening process?
- How do you perform inspections?
- What are your practices for returning security deposits?
- How many employees do you have?
Sometimes, the best property managers come from friend and colleague referrals. Make sure to ask anyone you know who works in real estate or property management if they know anyone that would be a good fit. Although the internet makes things easier, word of mouth is highly compelling when looking for a property management company. After all, other industry professionals most likely talk about a bad property management company.
What’s Your Personal Impression?
As we all know, first impressions are extremely important in many scenarios–including finding a property manager. Aside from experience and approach, professionalism and communication are key to a great match. As such, try to get to know your potential property managers by asking them about their interests and details that may influence how they perform their job.
Since owners work closely with managers, everyone must communicate and collaborate effectively. Unfortunately, two different communication styles could lead to you two not being on the same page for important matters. So, it’s important to look for a management company with a positive first impression while giving them a good impression as well.
Only Hire Licensed Professionals
Many states require property management companies to have a real estate broker’s or management license. This makes a huge difference since a licensed manager has completed an official property management course and passed a state licensing example. As such, they have additional knowledge to help owners navigate their rental business needs.
Typical Fees and Property Management Services
Property management companies generally charge for their services differently. Either they’ll charge a flat monthly fee or take a percentage of the rent collected. Additionally, sometimes there are extra factors that affect pricing, like the condition of the property, size of the property, and the location.
Most property management companies offer several services, including rent collection, tenant screening, maintenance, and more. Here are some of the typical services provided by property management in Philadelphia.
- Tenant Screening
- Move-In/Move-Out Reports
- Rent Collection
- Eviction Services
- Lead Paint Compliance
- Rental Registration
- Monthly and Annual Financial Statements
Before selecting a rental property management company to work with, it’s crucial to learn which services they offer and how much they charge. Make sure to choose a company that provides comprehensive management services, so there are no gaps in managing your rental business.
Would Your Business Benefit from Property Management?
If you think your business could benefit from professional property management, look no further than Bay Property Management Group. Our talented group of property managers works hard, so you don’t have to! So, whether you own one rental property or 100–we’ve got your back.
Bay Property Management Group offers comprehensive rental management services, including tenant screening, rental registration, maintenance, rent collection, and more. Contact BMG today if you need management services in Baltimore, Philadelphia, Northern Virginia, or Washington, DC.