Planning to lease a property or expand your real estate portfolio? It’s more time-consuming than you might think. Find a reliable property management company so that you can relax or focus on other things.
Property management companies incorporate all day-to-day activities that go into maintaining and managing your properties, including tenant screening and requests for maintenance. This ensures you focus on growing your investments while the company takes care of the operational details.
Here are eight things to consider when selecting a property management firm. If you are a first-time landlord with several properties or have invested in real estate for a long time, we’re here to answer your questions and ease your mind. First, let’s start with the importance of a property management partner!
Why is it Important to Hire a Property Management Company?
Managing rental properties can be a daunting task. In this case, a property manager can be your savior. The first thing they assist you with is determining the rental model you’d like to use for your property – short-term, mid-term or long-term. At AvenueWest, for example, we specialize in managed corporate rentals, where all our guests are vetted by corporations, with an average stay of 99 days. There are some serious perks here—fewer guest changes than short-term rentals, tenants who treat your property with care, and always-on-time rent payments. We also handle all operations on a daily basis, so there is nothing for the property owner to worry about. They supervise everything from rent collection, maintenance, and repair operations, solve problems related to the tenants, and manage legal matters and regulations, and special requests from our corporate guests. We also offer 24/7 services in case of emergencies and optimize occupancy rates and rents.
A little over 10 million people own at least one rental property in the U.S., with 51% of these people opting to have a property manager. Source: How many of those property management companies are allowing property owners to earn more while doing less?
How To Choose A Property Management Company?
Choosing the right property management company is key to investment success in rental properties.
Here are some of our top tips for choosing the best property management company for your needs:
1. Experience and Reputation
The most crucial element in selecting the right property management partner is experience. An experienced team will know how to smoothly manage properties, deal with tenants, and navigate the complexities of real estate law. They will also have relationships established with vendors, contractors, and service providers, which is a huge advantage when something needs to be done quickly and efficiently.
The best way to gauge a property management company’s experience is by looking at how long they’ve been in business, the types of properties they’ve managed, and their success rate with properties similar to yours. You can also assess their reputation by checking client testimonials, and ratings on trusted platforms. A reputable company will have a track record of satisfied clients and positive feedback—proof they consistently deliver excellent service.
2. Services Offered
Property management companies offer a variety of services, so it’s important to choose one that meets your specific needs. Some focus on residential properties, while others specialize in commercial real estate. The right property management partner will provide a full range of services tailored to your requirements.
Common services provided by property management companies include:
- Rent collection: Handling monthly rent payment and late fees
- Property maintenance: Managing repairs, regular upkeep, and emergency issues
- Marketing: Promoting properties to attract quality tenants
- Tenant vetting: Corporate housing guests are vetted through the corporation they’re working with, so you know they’re professional and trustworthy. For other rental models, this screening process is handled by the property management team
- Lease enforcement: Overseeing lease terms, renewals, and tenant concerns (less headache for you!)
Before signing a contract, make sure to ask about the services they offer to ensure they align with your goals and what you need for your property. Companies that provide a wide range of services are often more convenient, as you won’t need to hire additional contractors or service providers to handle specific tasks.
3. Pricing Structure
Cost is often an important factor when choosing a property management company, but the best companies offer transparent pricing that reflects the value they provide. Look for companies with straightforward fee structures and clear contracts, and steer clear of those with hidden fees or vague terms.
Most property management companies charge between 8–12% of the monthly rent, but this can vary depending on the services they provide and where your property is located. Some may tack on extra fees for things like maintenance, advertising, or lease renewals. Make sure to get a detailed breakdown of their costs so you can compare and ensure you’re getting the most bang for your buck.
It might be tempting to choose the company with the lowest fees, but that can sometimes mean sacrificing quality service. Be sure to consider the company’s reputation and the quality of their services alongside their costs to make the smartest investment possible.
4. Communication and Responsiveness
You’ll want a team that’s responsive, clear, and easily accessible for any questions or concerns. Good communication should extend to both property owners and tenants, covering property conditions, maintenance issues, and other important matters.
Ask how they stay in touch with clients and tenants. Do they have 24-hour emergency lines for urgent issues? How often will you receive updates on your property’s performance and concerns that may arise? Also, find out how quickly they respond to inquiries or service requests. The best property management companies prioritize clear and timely communication to keep everyone informed and at ease.
5. Legal and Regulatory Knowledge
Real estate law can be complex, especially since state laws can vary greatly. You’ll want to conduct thorough research and choose a property management company that’s familiar with and follows the commercial laws and regulations specific to your area.
These laws cover areas such as landlord-tenant relationships, housing discrimination, eviction procedures, and rental fee limitations, among others. A competent property management firm will handle all these legal aspects, ensuring you avoid costly mistakes or, worse, legal disputes.
Additionally, they must stay proactive about any changes to local, state, or federal laws that could impact your property. They should have legal resources or a team of professionals ready to handle any legal challenges that arise. With these provisions in place, you can rest easy knowing your property is fully compliant with all regulations and free from potential legal issues.
6. Tenant Retention and Satisfaction
A skilled property manager focuses not just on finding the right tenants, but also on keeping them happy and minimizing turnover. High tenant turnover can be expensive due to lost rent and the added costs of finding and screening new tenants.
Ask about their tenant retention policies. How do they address tenant concerns or complaints? Do they conduct regular inspections or maintenance checks to ensure tenant satisfaction? A property management company that prioritizes tenant happiness is more likely to have tenants who renew their leases, helping you maintain consistent income and avoid vacancies. Your wallet and sanity will thank you!
7. Technology and Online Tools
The right property management company will offer both you and your tenants easy online access. In today’s digital age, online tools are essential. Tenants should be able to pay rent, request repairs, and communicate with management online. As for property owners, an online portal should be available to track rent payments, view financial reports, and manage property performance.
Look for a property management company that uses the latest technology to streamline operations, improve tenant experiences, and boost overall efficiency. This will save you time, reduce administrative work, and make managing your property more transparent.
8. Property Inspections and Maintenance
Regular property inspections are essential for keeping your property in good condition and catching problems early. Ask any potential property management companies about their inspection procedures and how often routine inspections are done.
In addition to their inspection process, it’s important to look at how they handle maintenance requests. A good property management company should have a reliable list of trusted vendors and contractors ready to address issues quickly. Whether it’s a leaky pipe or a broken appliance, they should be able to get the job done without delay.
This means they should have both a routine maintenance system and an emergency response plan in place, ensuring that issues are addressed promptly and appropriately, causing little disruption to your tenants or to you.
Conclusion
Choosing the right property management company is a decision that can make or break your rental business. It’s important to consider factors like experience, services offered, pricing, communication, legal expertise, tenant retention, and technology use to ensure you partner with the right company.
At denver.avenueWest, we pride ourselves on being one of the best property management companies, offering a comprehensive range of services designed to make real estate investments both profitable and hassle-free. Whether you need assistance with tenant management, property maintenance, or legal compliance, our team is ready to support you.
Contact us today to learn more about how we can help you succeed in your property investments!
