So you just invested or bought your first properties, or maybe you’re a seasoned veteran when it comes to real estate. If you’re new, maybe you don’t want to take on all the tasks that go along with managing a property. If you’re a veteran, maybe you don’t want be as involved anymore. In either case, a property management company (PMC) is a good solution. Picking a company to take care of your rental properties can be an exhausting task, but there are traits to look for in a property management company to make the process go as smoothly as possible.
Percentage they collect each month
Every PMC you go to is going to have a fee they collect every month for managing your properties. Duties like collecting rent, evicting troublesome tenants, etc. 8-12% is the typical fee. Any more then that and they will be taking a substantial chunk out of your bottom line.
Rental properties can accrue a number of expenses that can really add up over time. If you allow your PMC to take care of it then you want them to be as cost savvy as possible. If the towel rod breaks off in the bathroom, they should not look for the $75 rod if it’s a $30 bathroom.
Market Value Rent
Deciding what to charge for rent is one of the leading factors that affects your bottom line. Make sure your PMC chooses a market value rent. If the rental property is in an established neighborhood make sure the rent reflects that. The same can be said for a property in an up and coming neighborhood.
Without tenants, your rental property can drain your pockets. The PMC you choose has to work diligently to place new tenants in your property so your property doesn’t sit idle. Your PMC has to work fast, but not at the expense of quality. Placing quality tenants means the difference in having to replace carpet or simply having them cleaned.
Ease of communication with tenants
How your PMC communicates to your tenants can save or cost you a bunch of money. If the rent payment process isn’t easy, this can cause late rent payments. The ease of putting in a maintenance request can mean the difference between stopping a leak and having to replace a rotten floorboard. Your PMC should be available to you and your tenants at all times.
Reliability and Expertise
All of the traits mentioned above come with a proven track record. If you choose an established PMC, they will know more tricks of the trade.
Every house, owner, and tenant is different, so when considering a property management company take a look at all aspects and make the best decision for your rental property.