What to Look For in a Property Management
Owning a rental property can be a very good way to supplement your income or perhaps be your primary source of income. However, many property owners live hundreds of miles away from their rental properties, and a property management company becomes the most practical solution to make sure rents are collected, the property is maintained properly, potential tenants are screened and all the other tasks of managing a client’s property.
However, like every other industry, there are property management companies that take their responsibilities very seriously and others that take advantage of their clients and go through the motions of managing their property. So how can you make sure that you do business with the former and avoid the latter?
Here are some suggestions on what to look for in a property management company:
Remember that this is a business arrangement –
This should be uppermost in your mind as you interview different companies. You are looking for an outfit that has the experience, offers its services at reasonable rates and responsibly manages their affairs. This is your property and ultimately your responsibility. Make sure to choose a property management company that instills confidence.
Ask about their fees –
Do not let price be your single-largest consideration. It is reasonable to expect that the better companies will charge more for their services. They are probably offering more accountability and doing a more thorough job. Just make sure you have the management fees included in any contracts.
Request a list of the other properties they manage –
A professional property management company will gladly provide a list of the properties they manage. Visit some of their clients’ properties, get out of your car and look around to make sure they manage these properties as well as they claim they do.
Inquire about how they market vacancies –
Vacancies are part of owning an investment property. Commercial and residential tenants come and go, but the time it takes to attract and vet a new one can make a huge difference in your bottom line. Look for a property management company with a strong online presence to advertise and market your property to keep vacancies to a minimum.
Regular income and expense reports –
Again, your rental properties are your business so make sure that you and your company treat your income properties as a business with regular income and expense reports. These reports are an invaluable business tool for tracking expenses, spotting market trends and identifying opportunities to cut costs and enhance your income.
All these considerations and more are very good ways to separate the wheat from the chaff when it comes to professional property management companies. Whether you live hundreds of miles away, or in the same locality and would rather not manage your property yourself, retain a property management company that has experience managing residential and commercial real estate in the Louisville area, and offers custom management plans to meet the unique needs of your situation.
Chris longsworth is the founder of Invesca. At present days Longsworth and invesca are doing great job on Asset Management, Business Management, Facility Management, Construction Management, Business Management, Marketing and Sales, Asset Management and Development.