If you're looking for a way to manage a rental property with less stress and a much lower investment of your time, a property management company may be the choice for you.
However, hiring a company to manage your property without asking the right questions is a recipe for disaster. From simple contact information to the recruitment of tenants, you have to know what issued to raise to make the right choice.
Contact Info
You must know contact the property management company in case there's a problem. Also ask the company if they allow you to use email communication for non-emergency situations. It saves time and is much more convenient for your busy lifestyle. For emergency situations, does the company have a cell phone number you can contact? Having multiple options to reach your property manager is essential.
Repairs
Is the property management company you're considering responsible for repairs? Do you pay separately for repairs, or is it included as part of your contract? Do they hire an outside company to take care of household maintenance? If so, how much does it cost? What kinds of repairs are you responsible for? How much cash reserve does the company require to cover repair expenses?
Yard Maintenance
Who is responsible for mowing the lawn, raking the leaves and shoveling the snow? If your property manager handles these requests, your property will be more attractive to potential tenants. Busy families will enjoy the time savings of not having to do yard work. Single parents and people with disabilities may also find your property more attractive to rent if yard work is not required. Are you responsible for hiring additional help for the upkeep of the yard?
Contract
If you and your property management company aren't working well together, how hard will it be to get out of the contract? What is the length of the contract? What is the fee for early termination? Hope for the best, but be prepared for the possibility that it may not work out.
Vacancy Fees
Some property managers charge a vacancy fee. This fee covers the company's cost of advertising, the time spent showing the property to interested tenants, and other charges associated with filling the vacancy. Ask if the company charges a fee for vacancies, the amount of the fee, and how it is billed.
New Tenants
How effective is the company you're considering at filling vacancies? What means are used to advertise your property? Does the company have a website with high-quality pictures of its properties? Do they take advantage of the free rental listings available on the web, and of local classifieds? What percentage of the company's current properties are vacant? Without tenants, your property isn't making any money. Hiring a company that will effectively market your property is essential.
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