There are certainly some financial perks to being a landlord. However, if you try to do it by yourself, you could end up overworked to the point that the extra money doesn’t really seem worth it. That’s why so many landlords choose to hire a property manager. This way they can enjoy a passive income. It also allows them to handle things correctly and in a timely manner.
Unfortunately, choosing a property management company isn’t always easy. When you Google the term “property management,” you’re faced with thousands of options which makes it difficult to choose. This is an important decision that you can’t take lightly.
Choosing a property management company to work with is kind of like screening tenants. You want to choose the right tenants to ensure rent is paid on time and to reduce the turnover rate. To do so, you take a thorough approach to screening your tenants to make sure they’re a good fit for your property. That’s basically the approach you want to take with a property management company. You don’t want to just choose the first one you find. You want to ask questions and get to know a little more to find out if they’re the right match. When selecting a property management company, make sure to avoid these common mistakes:
Not asking the right questions
You need to look at your property management search like you would an interview. When you call up or meet with a property manager, come prepared with questions to ask. Not asking the right questions is a big mistake. You could end up being locked into a year-long contract with a company that doesn’t fit your needs.
Ask about their experience and make sure they have a portfolio. You’ll also want to ask them to discuss how they’ve handled tenant issues in the past. Make sure you learn about their tenant screening process. Learn about how they’d market your property if you hired them. Find out how quickly they will respond to tenant concerns.
Get specific answers, not ballpark estimates, like “as soon as we can.” Also, ask about their eviction process and eviction rate.
Choosing a company that doesn’t offer modern perks
You also want to make sure you pick a property management company that is up to date. Check out their website. If it’s old and offers very little information, it may not be the right choice. However, when the company has a robust website that offers a communication portal for tenants and allows tenants to pay online, it’s a good sign. You can always ask the property management company about what services they have to offer to make sure they’re staying competitive with the times.
Picking the cheapest one
You may be quick to choose the cheapest property management company that you find in your search. However, you could end up getting what you pay for. The right property manager can help save you money by improving your marketing and reducing tenant turnover.
However, the money you might save going with the most affordable company may end up costing you in the long run. Instead of choosing a company based specifically on how much they cost, choose one based on your needs and if the company will meet your expectations.
Choosing a firm that isn’t familiar with the neighborhood your property is in
You need to choose a property manager that is familiar with the area your property is located in. If they’re familiar with the area, they’ll be more familiar with local rules, laws, and regulations. They’ll also have a better idea of how to market your property. If a property management company isn’t familiar with your property’s location, they’ll be less likely to provide efficient management.
Not reading reviews
Take time to read online reviews. Check reviews on Google and the Better Business Bureau. Find out what people are saying. Don’t just go by the number, but actually read the comments. Some reviews could be from tenants or landlords, so it’s good to actually dive in and see what people are saying.
Ignoring the fine print
It’s important to read the full agreement from a property management company before signing it. There could be specifics in the document that won’t align with your needs. Some companies require a year commitment, others may charge you for exiting the agreement. It’s essential that you know what you’re signing up for.
Be careful when choosing a property management company. Do your research, ask questions, look at reviews, and learn as much as you can about the company before signing up.
If you’re unsure where to start, contact us: https://www.glenallenpropertymanagementinc.com/. At PMI Richmond, we take a month to month approach, instead of requiring year-long contracts. Every month we continue to earn trust with our clients and keep their business, which means you can expect quality.
We also have experience you can rely on. We market properties, screen tenants thoroughly, provide a communication portal, and work with a great team of vendors for any maintenance needs. You can count on us to get the job done successfully.
