You want to invest in real estate but you don’t have the time to collect rent checks and field calls from angry tenants.
Not many people do, especially if they’ve got separate full-time jobs.
So what’s a real estate investor-hopeful to do?
Luckily, there are property management companies that are specifically in the business of managing other people’s properties. They’ll market the property for rent, screen potential tenants, collect rent every month, maintain the property, and deal with any disputes that might come up.
But with all the property management firms out there, how do you pick the right one?
Here are 5 tips to help you find the best property manager possible.
1. Ask For References
You’ll likely want to see references from prospective tenants to make sure they’ll make good renters. In the same way, you’ll want to make sure the property manager you consider comes with references too.
Checking out their references before committing to a specific property manager is a great start. Ideally, they’ll be experienced and have a track record that you can look into, and you should.
By speaking with previous real estate investors who have once used the services of the property management companies you’re considering hiring, you’ll get a feel for what they’d be like as a property manager if you hire them.
2. Make Sure They’re Licensed
Anyone can call themselves property managers, but have they taken property management courses and passed state licensing tests?
These credentials will set them apart from others who might claim title of a property manager but might not have all the necessary training needed. This is especially true when it comes to knowing all the ins and outs of managing real estate and tenants according to state law.
Accredited property management companies will know what they need to do to follow the proper procedures in your state when it comes to taking security deposits, charging and collecting rent, and dealing with evictions, among other things.
3. Ask How Much They Charge
The discussion of compensation can go both ways. Either you can tell the property manager how much you’re offering to pay, or they’ll tell you how much they typically charge.
Obviously, money is a critical factor when it comes to hiring a property management firm, or any other professional for that matter.
The majority of property managers tend to charge anywhere between 7% to 10% of the rent you charge. There may be other fees to pay, such as charges on maintenance items, as well as charges for filling vacant units.
Knowing how much you’re going to be spending on having someone else manage your property is critical information to have and factor into your budget.
4. Ask How Long They Take to Fill Vacancies
Every month that passes with no tenant in your unit is more money lost.
You have to expect vacancies from time to time. That’s all part of the process.
But you don’t want your property to be vacant for long. To counter this, you want to know that the property manager you hire is aggressive with their advertising tactics and has a good track record of filling vacancies very quickly. The faster they can find a tenant, the less money you have to worry about losing.
5. Inquire About How They Handle Evictions
Another great question to ask your property management candidates is how they handle evictions and what their procedure is for dealing with them.
You also want to know what their eviction rate is. If it’s rather high, you might want to question whether or not they’re not screening their renter applicants thoroughly enough.
Want More Info About Hiring a Property Manager?
If you’re curious about how to find and hire a property manager – or any other how-to topic under the sun – be sure to visit CuriosityHuman.com. No matter what you happen to have questions about, you’ll find it all here! Visit CuriosityHumans.com today!