Are you a new homeowner looking to capitalize on the rental value of the property, but don’t know where to begin? Or maybe you’re a seasoned real estate professional but simply don’t want the hassle and headache of dealing with your tenants, and would rather outsource the problem?
Whatever your reason, rental property management is a huge industry in the United States, and accounts for more than half of real estate rental properties in the country.
With that level of investment in the industry, there are lots of providers out there eager to add your property to their list, but how do you know which to pick?
Look for Local Experience
First and foremost, you need to consider how long the company has been around in your area. Just because a company has a large regional or national brand, doesn’t mean they know what they’re doing when it comes to managing a property in your city.
Trends can vary from city to city, even within a relatively short geographical distance, and the more established a management company is in your city, the more likely they are to know realistic expectations for getting things done in your neighborhood, whether that means helping you to find a new tenant or calling the emergency heating repair man on a holiday weekend.
The next point to consider is the level of fees the company charges. Fees can be all over the map in this industry, because the included services can vary greatly.
For example, some companies charge a higher base fee but include minor service visits and inspections for the property, so you don’t have to pay extra if the repair can be done by one of their in house handymen as opposed to hiring an outside firm.
For the dozens of small quick fixes that arise with any rental property, that could be a good deal, or it could be a way to rip you off, so make sure you do your homework to figure out which it is.
See this site for more.
Find a Reputable Association
Finally, you should always be looking for rental companies that have a good reputation with a local, regional, or national association.
There are literally hundreds of different types of homeowners associations to choose from, whether that’s for property management and investing or resource lists for owners.
You can find one example on this site.
I hope this post has helped you to think about different ways you can evaluate your rental property management company, before you sign the formal agreements and get locked into a situation you weren’t expecting!