How to Find Good Property Management Companies
Investing in Real Estate can be a great source of passive income, however, the day-to-day operations of a rental can require a time commitment that you might not be up for. This leads you to explore the benefits of hiring a Property Management company, but how do you pick the right company? Your rental property is one of your most valuable assets, so you want to hire a property management company that you can trust. Here are some key steps to finding the right property management company for you.
Referrals
You trust the judgement of your friends and family members, so ask them for a recommendation on a property management company and how their experience with the company has been.
Research
Do your research online! Google Property Management companies in your city and look at their websites. Their websites should display their property management services, fees, team members, experience and awards. A company that regularly publishes blog posts, e-books or social media posts, will give you insight into their knowledge on the rental market. A company with numerous awards from reputable businesses will provide you with reassurance that they are recognized as a reputable business in the city.
Reviews
Look at their reviews. What have their current clients and tenants been saying about their company? Reviews should provide you insight from both ends of the property management service. How do they treat their clients vs. how do they treat their tenants? If they have negative reviews, look and see if the company has posted a comment to reply. Their reply will give you a good insight into how they handle difficult situations and their customer service.
Ask Questions
Next, contact the property management company and set up a meeting with one of their agents or property managers. Often, property management companies will offer free consultations. Be sure to ask them how well they know the rental market in your city, particularly in the neighbourhood your rental property is located. How will they advertise your property? Are they licensed? Do they offer non-resident tax services? How do they handle repairs and maintenance?
Review Their Agency Agreement
Make sure you’re aware of all their property management services, fees, and procedures. Some property management companies will charge an all-inclusive management fee, while, some may charge a lower management fee, but have additional surcharges on items such as inspections and maintenance. Knowing all the fees to expect will help you plan your budget and rental cash flow.
At the end of the day, hiring a Property Management Company to manage your rental should make your life easier. As a general rule of thumb, remember that you get what you pay for, and you must weigh the pros and cons of service vs. cost. Putting in the work to research a company beforehand can help you avoid a headache and additional costs due to lack of service down the road.
Interested in learning more about our Property Management services and fees? Download our Guide to Property Management.