Handing over your income property to a property management company can seem like a risky decision. After all, it may result in significant profits but can also drive you to bankruptcy. At Bay Management Group, we understand how difficult it can be to find a reliable property management company, so we developed this guide to help you place your property in the right hands.
Contents of This Article:
- When Do You Need a Property Manager?
- How to Find a Reliable Rental Property Management Company
- What Makes a Good Property Management Company?
- What to Look for In a Property Management Company
When Do You Need a Property Manager?
If you own rental properties, you know how much work goes into managing them. As such, it’s usually quite obvious when it’s time to delegate tasks to property management professionals. However, if you’re new to owning rentals, you may not recognize when to hire a management team. As such, here are some signs you need a reliable property manager.
- Too Many Rentals to Manage Alone- If your business grows so much that you simply have too much work on your plate, it’s a sign you need to outsource. After all, managing several rentals yourself quickly becomes a full-time job, whether you want it or not.
- You Don’t Live Nearby- Not all landlords own rentals in the same town they live in. If you have to travel to care for your rentals, it can take up a lot of time. So, many out-of-town landlords hire property management to keep up with their rentals.
- Time Is Limited- If you want to own rental properties but don’t have time to manage them, consider hiring a property manager. After all, just because you want to own rentals doesn’t mean you have the time to manage them.
How to Find a Reliable Rental Property Management Company
When your business grows to the point where you can no longer manage rentals alone, finding a reliable property manager to help is highly beneficial. However, you don’t want to go with the first company you find. As such, here are some crucial steps and questions to ask before hiring a property management company.
- Always Meet In Person
- Ask a Lot of Questions
- Get Recommendations
- Compare Prices
- Check Reviews and References
Always Meet In Person
Nowadays, you can quickly process any paperwork over the internet. This is convenient, but it also creates plenty of opportunities for fraud. That’s why, at least the first time you meet with your property manager, it should be in person, preferably in their office. You don’t want to hand your rental to someone who works from home or from a friend’s basement.
Additionally, meeting in person is best to understand better who they are and how they work. Meeting in person can give you a better connection and ensure you’re both on the same page in the future.
Ask a Lot of Questions
Ask as many questions as you want until you clearly understand the company and its property management process. Here are some of the points to clarify:
- Experience: ask how many years the company has been in business and how many of them are in your market. Which would you choose: a Baltimore property management company with ten years of experience in the Baltimore area or a Pennsylvania company with the same expertise that just extended the service area to include Baltimore? You should find someone knowledgeable in the local property market, as well as local laws.
- Property to Employee Ratio: Ask how many total properties the company manages and how many per account manager. You want the company to have a decent portfolio, but you also want a lot of time dedicated to managing your properties.
- Income Property Ownership: Don’t be afraid to ask if the owner has his own income property in the same market. If he or she does, it means they can better understand your needs, but it also means they are your direct competition and a biased party when it comes to prioritizing whose property gets rented out first.
- Specialization: Different companies might specialize in different types of properties: residential, commercial, vacation, multi-family, etc. Be sure to select the one that fits your needs best.
Get Recommendations
If you’re unsure where to start finding a reliable property management company, get recommendations. Ask other real estate professionals you know if they have any recommendations for nearby property management companies.
For instance, you could talk to other landlords in the area, real estate agents, or other industry professionals to see their opinion on nearby companies. Don’t forget to ask them about their experience and relationships with property managers nearby and their strengths and weaknesses.
Compare Prices
Each property management company has different fees. So, meet with a few different property management companies to compare the costs and fee structure. For instance, some companies charge a monthly flat fee, while some charge a percentage of the rent you collect.
Furthermore, you’ll want to see how much they charge for additional management services, like placing tenants in vacant rental properties or handling evictions. Ultimately, you’ll want to know how much it’ll cost for property management on a monthly and yearly basis.
Check Reviews and References
Finally, you don’t want to hire a company without checking their reviews or references. You’ll want to find a company with a good reputation and business practices. So, check their website reviews and ask other industry professionals to better understand how the company is perceived. If they have a good reputation, they could be a good candidate. After all, you don’t want to hire a company with shady business practices and bad reviews from clients or tenants.
What Makes a Reliable Property Management Company?
If you’re unsure what makes a reliable property management company, there are a few key qualities to look for. For instance, you’ll want to work with industry professionals who understand the importance of your business practices, goals, and overall mission.
As such, here are some qualities that make a property management team reliable and worthwhile.
- Trustworthy and Dependable
- Professional Experience
- Around the Clock Availability
- Up-to-Date Licenses and Certifications
- Great Customer Service
- An Excellent Reputation
After searching diligently and interviewing several property management companies, you can make a more informed decision. Then, hopefully, you’ll have a reliable property management company on your side to help your business succeed.
What to Look for In a Property Management Company
You’ll want to find a reliable property management company if you’re overwhelmed with never-ending rental management tasks. Once you’ve researched local companies, you can decide who will be the best fit for your rental business.
You’ll want to find a property management company that offers comprehensive services so you don’t have to worry about anything on a day-to-day basis. When it comes to tenant screening, marketing rentals, maintenance, communicating with tenants, financial statements, and more, a full-service management team covers it all.
Need More Advice? contact us today!
Luckily, Bay Property Management Group has you covered if you’re looking for a well-rounded, full-service team. Contact us today to learn more about our comprehensive rental management services and how we can help your business succeed.