Choose the Right Property Management Company
Whether you've tried renting your property on your own or you just do not have the time, utilizing the services of a property management company may be your best, most efficient option for getting your property rented. There are many different types of companies and services and knowing what works best for you is the key to an easy transition.
Instructions
1. Know what you want. You must decide whether you want a full-service management company or a tenant finder. The full-service companies will advertise your property, place tenants, maintain the property, collect rent, provide or sub-out repair services and send a monthly rent statement and check each month. Generally, they charge a one-time fee plus a percentage of collected rent per month. A tenant finder will advertise your property and place tenants for a one-time fee, generally an amount equal to the first month's rent.
2. Have realistic goals about your rental. While every rental property owner wants to make enough money to cover their mortgage and then some, this cannot always be. Know what comparable properties in the area are renting for and understand the current market; these things directly affect your property. Always remember that getting $900 towards your mortgage is better than nothing.
3. Do some research. Most reputable companies will have a website; check it out to see what type of advertising they provide, how easy their site is to find, the other available properties represented by the company and read any client reviews that pertain to the business. Know who you are doing business with.
4. Request references. Ask for at least two references from current or recent clients. Most management companies will give this information with no hesitation, and if they refuse, ask yourself if you really want this company managing your investment.
5. Review the management agreement before signing. The golden rule of adulthood is to always read before signing. Management agreements are legally binding contracts and can be negotiated. You may want to have your attorney take a look at it, as well.
6. Understand the fees and penalties. While the fees and penalties may be outlined in the management agreement, make sure that you fully understand what those fees entail. For example, some management companies offer free advertising while others charge per listing; request a list of the fees and services -- any reputable company will have this available. You also want to be fully aware of any penalties in regards to early termination. For whatever reason, there may come a time when you want to end the agreement. Whether you want to manage it yourself, sell the property or turn the property over to another company, fees may and often do apply. Know where you stand before making any agreements.
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