For the first-time investor who is on the fence about hiring a property management team or handling the landlord responsibilities themselves, there are dozens of reasons that you should consider hiring a 3rd party to manage your rental properties. For instance, if you have multiple properties, live too far away from them, or simply have no interest in hands-on management, then hiring a management company is the best option for you.
Consider the Benefits
Hiring a property management company to oversee your rental properties is a great way to protect your investments and add value to them in the process. In addition to this, there are several benefits to consider including:
- Accounting and tax reporting
- Better quality renters
- Fewer, if any, expensive and time-consuming legal issues
- Higher tenant retention rates, shorter vacancy periods
- Marketing your properties
- Reduced maintenance and repair expenses
- Stricter rent collection process
In addition to these benefits, there are some personal benefits for the owner/investor as well. The right property management company will free up more time for you. That, in turn, means less stress for you and more freedom to do what you want without having to worry about how well your rental properties are being taken care of.
Right Questions Will Help You Decide
If you’ve recently decided to change property management companies or hire one for the first time, there are certain characteristics or qualities that you should look for before making your decision. When you interview property management candidates, there are questions that you should ask each one. Furthermore, you should base your final decision on how each candidate responds to these 4 questions.
What level of experience and expertise do you have?
Obviously, the longer they’ve been in business, the more experience and expertise they’ve accumulated. It’s very important that you find out the level of each that they possess.
How many properties do you currently manage?
The size of a company’s portfolio could range from 10 single family homes to as many as 1,000. However, if you don’t know how many they are managing, you may not be able to determine if they’re a good candidate for your properties.
How do you handle maintenance and repair work?
Most property management companies will have maintenance and repair teams on staff while others have access to licensed contractors for these responsibilities.
How accessible are you?
It’s important to hire a property management company that is readily accessible for you as well as your tenants, especially if there is an emergency outside of office hours. Find out how they prioritize the calls and complaints they receive from tenants as well as how quickly they respond.
On a closing note, it’s important that you interview several property management firms in order to have a better comparison and to make a well-informed decision. It is important to consider their experience and customer feedback.