Property Management: Working with a Property Management Company

Have a property or two that you need assistance with? Looking for help securing tenants? Worried about ensuring the property is up to code and stays that way?

For some the solution is hiring a property management company

There’s a lot to do when you’re the owner of an investment property. Depending on what type of property you have, you’ll have specific tenants to look for as well as needing to make sure the property is well maintained. It can get overwhelming very quickly. For some owners, it’s smarter to employ the services of a property management company. You get their years of experience helping you handle the day to day challenges and you have someone who can take on some of the responsibilities so you can focus on other things. If you’re interested in working with a property management company, let’s start with how to find the right one to work with.

  • Ask around online, through local networking opportunities, or with fellow investors you know. See who they recommend working with and why. Compile a list so you can review side-by-side once you have several to compare. While you’re at it, check the state’s Better Business Bureau and Real Estate Commission to confirm their professionalism (if their licensed and any lists of complaints against them).

  • Try to meet the manager in person before you take on their services. Get an idea of how they handle themselves as they will be your representative with tenants. Plus this will help you assess their capabilities as you are narrowing down your options.

  • You’ll have a contract with the property management company you select to work with. Be sure to review it in its entirety, ask questions, and negotiate terms to ensure you and your investments are well taken care of. Some things to look for:

    1) Who will be your main contact?

    2) How will you be charged? (i.e. Will there be more than one manager assigned to you and would that impact your fees?)

    3) What are the requirements for termination of the contract?

    4) What’s the process for handling regular maintenance and needed repairs? What additional fees/costs could come to you and will that be communicated BEFORE work is done?

    5) How will tenant’s pay be handled and how is it dispersed between you and the property management company, if that’s their set up?

    6) What is their process for dealing with a tenant who has not paid properly? (i.e. what’s their eviction procedure?)

    7) What does the tenant lease look like? Review it in its entirety to ensure you’re satisfied with the measures in place for this agreement.

Now let’s talk about how the best ways to work with a property manager once you’ve selected your company to work with. It’s important that from day one you have well-established lines of communication. Make sure you know who you can get a hold of, how, and that they are reasonably responsive. Have a plan for how funds designated for the property are handled. You’re the boss so you set how things are to be spent whether you’re giving them access to pay through a set up account or if the property manager has to go through you to pay for any work/maintenance. You’ll also want to set up accounts for ensuring you’re receiving the money from your tenants rent so have these accounts set up with the right levels of authorization. Remember, you’re the boss!

Still unsure if you can find the right property manager on your own? Call us! We have several of our own properties so we have learned how to handle this delicate balance and have some recommendations of our own. Use the form below and we’ll be in touch shortly!