Buying an investment property is a big undertaking, and it takes a lot of work. Fortunately, if you do it right and the property is managed well, you can generate a very lucrative income stream. The trouble is this; Sometimes you don’t have the time or the know-how to truly manage a property to its full potential. That’s where a property management company can come in very useful. Property managers can help you to achieve your goals of being a successful landlord without you having to do any of the day-to-day work.
Your relationship with a property management company should actually start before you purchase the property. They can hep you to find exactly the property you want and at a decent price. Once you find the property and purchase it, they can help you to manage the property on your behalf. The right management company can save you time, money, hassle, and headaches, leaving you to focus on the other aspects of growing your business. Whether you already own a property and are looking for a manager or whether you are thinking of purchasing a property and would like some assistance finding the right one, a property management company can help.
Here are a few things to consider when choosing a company to work with:
The company’s reputation
If the company comes highly regarded and/or recommended by people you trust, that’s a very good sign. Remember to always take online reviews with a grain of salt, because you never know who wrote them and what their motivation was.
Before you sign on the dotted line, always read the details of the contract. When will they inspect the property? What daily maintenance will they do? How will they handle after-hours emergencies? Will they help you to find good tenants? How do they handle evictions? Ensure that all of this is outlined in writing, or else ask for the contact to be revised. If the company isn’t willing to outline everything for you, go with another company.
As with most things, hiring a management company should take the cost into consideration, but it shouldn’t be the only consideration. Every company will have their own set of fees. Be sure you know exactly what you are paying for so you can compare apples to apples. Don’t simply look at the price alone, because you won’t get a true picture of the value each company is offering. It may be that a more expensive company may offer a better value than a less expensive one, because of the services their price includes.
As you can see, there are a lot of things to consider when hiring a property management company. It may seem tedious to go through this process, but it’s worth it to find a company that you can feel comfortable entrusting with the day-to-day management of your property.