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Many property owners but very little time to manage them will often hire a company to take on that workload. Maybe you own a property in California, but live in New York (or even China) – own a large building with dozens of units and overwhelm yourself with the sheer number of management jobs.
There are many reasons to hire a property management company, but there is no reason to associate with one that fails to live up to your standards. And trust me, they’re there, and if you don’t cool down – be aware of the difference between good and bad – it’s going to be ugly for you and your business. It is Subject Who you hire, because there is more to managing a property than just finding good tenants and collecting rent.
You will face many good candidates, but only a few will be great. Find out how to protect and nurture your investment.
Do research like tenants
Put yourself in the shoes of those who will pay to live on your property. Do you agree with the marketing methods and content that a potential asset management company is hiring for their managed assets? Are these places attractive and well maintained? Does marketing talk to you in a meaningful way?
The bottom line is: would you consider paying a rent for their property? If not here’s a new product just for you! These are the first questions you need to answer, because future tenants will do the same when deciding to rent from you or the person next door.
Related: Managing third party property is not as easy as it may seem
Like any industry, real estate comes with a full range of rental and leasing laws, restrictions and protocols that can derail your business in case of non-compliance. Properly managed company will have knowledge and skills in all aspects of law and other aspects governing the real estate industry.
Also keep in mind that residential and commercial property are very different; Some companies specialize in each other, and you need to choose one that has experience managing the types you own. In addition, search as a track record of each candidate. Does it only handle certain types of features or many types? (One particular method is often better than all business jacks.)
Good tenant relationship
Empty rental property does not generate revenue: tenants do, and you want to make sure they stick to it in the long run. You will be amazed at how easily an inexperienced property management company can stand in the way of that goal.
A healthy working relationship between the management company and the tenants is a great way to generate maximum and stable revenue. Therefore, it is imperative that you talk to some of the tenants who live / work on the property that your potential company operates. You want honest and complete answers that the level of work is being performed, and tenants will usually give them to you in uncertain terms (especially unhappy). If you like what you hear, you can be confident that the candidate will bring the same level of care and skill to your property.
Related: The rental property business is getting your feet wet
Looking forward to tomorrow
All of the companies you consider have excellent backgrounds, great reviews and enthusiastic tenants and owners may appreciate their qualities, but which ones are stuck in the past, vs. 21’s skills are welcome.St.– The technology of the century? The simplest of these innovations, of course, is the ability to pay rent online. Gone are the days of checks (or cashier’s checks) when collecting at the beginning of the month.
There are many good property management software options on the market, so ask the candidates which one they prefer. Their answers can go a long way towards ensuring a healthy and profitable work relationship.
That’s something special
At the end of the day, most candidates will offer a menu of similar services. If you have done your due diligence, the finalists will be reliable, dedicated and experienced, then how do you promote one over the other? The answer is simple: what Other Can a candidate pay? Does a company offer a service or do a job that others don’t or can’t do – be able to take as much responsibility as possible while providing a high level of service?
Related: Real-estate games are changing rapidly. Are you ready to win?
One last thought
Once you have decided on the company you want to hire, look carefully at the agreement they present. Make sure it covers every important point, provides services with a detailed outline, fees and costs associated with those services, the duration of the contract and your obligations.
This is the last factor that takes many owners, especially the first timers. This is where the gap between manager and owner comes in and often the important issues do not go through – the details that are missed and ultimately hurt you and your business. So, fully describe the tasks and responsibilities that the management company will handle and the ones that fall to you as the property owner. Double check these clauses to make sure you are not expecting to take any unwanted action. Basically, apply the same level of perseverance to the agreement in which you found the management candidate.