Guidelines for Picking a Property Management Agency
An excellent manager of rental property is invaluable. So how do you choose the best property manager? A good property manager may make or break a rental property. If you choose the wrong management, you risk suffering large financial losses due to unpaid rent and mismanaged property. Thus, before entrusting your most valuable asset to a property management company, it is essential to conduct extensive research on the company. Here are some things to look for to help you choose the best property management company.
Seek specialized expertise.
Managing real estate is a niche industry that requires specific expertise. You should hire a Pacifica property management company familiar with the most recent federal, state, and municipal laws. Someone with experience managing tenants and homes is preferable as well.
Look for a company that focuses on managing investments like yours. For instance, companies that focus on commercial real estate might not know how to appropriately handle residential properties.
The last piece of advice is to stay away from real estate agents that double as property managers. Your investment will be poorly taken care of, and they will be less likely to be up-to-date on relevant regulations if they lack the appropriate training.
Confirm professional licenses and credentials.
Some states do not require any license for property management, whereas others do. A competent property management company should be able to obtain the necessary certificates and licenses to do their jobs legally and ethically. Verify if a property manager’s real estate broker’s license is active with the state’s real estate commission. It is preferred that candidates have professional connections and relevant certifications.
Examine reviews and references.
Review the company’s Yelp and Google ratings and the feedback left on its Facebook page before scheduling a meeting. Remember that some reviewers (like a former tenant who was evicted) may have an agenda that has nothing to do with the quality of the company’s services. This page is a fantastic first stop when considering several different providers.
If you’re considering hiring a property manager for your rental properties, check their references with current customers and tenants. Don’t be shy about picking up the phone and calling either organization to find out how they deem the situation. How quick is the response time to owner requests for information from the property management? Are they aggressive about repairs and hiring new employees? Could you explain what each of their prices entails? Timely delivery of checks is guaranteed.
Go over the property management contract.
The property management agreement spells out the working relationship between you and the property manager and their duties and responsibilities. You must review the contract thoroughly and make any necessary modifications before signing. Check that it has everything you need and that no clauses bother you.
Confirm if they have proper insurance.
You must prove they have sufficient general liability, property casualty, and errors and omissions insurance (E&O). Good risk management includes fulfilling any insurance requirements outlined in your property management agreement. Those interested in learning more about the required insurance should contact the building’s management.
If you go with the lowest property management company in town and end up with unpaid rent and a neglected building, you will have wasted your money. Pick someone you believe possesses the skills, expertise, and character traits necessary to manage a rental property efficiently. Look for a company that would care after your belongings just as if they were their own. Follow these guidelines to zero in on the most qualified property manager for the position.