Property management companies are now a ubiquitous feature in real estate and though many investors still want to shield and nurture their investments, the role played by these companies cannot be gainsaid. It is one thing to create a portfolio in real estate but when it comes to management, you will find that this is a different kettle of corn altogether. In fact, most real estate investors who have found themselves in trouble started out well but ignored the crucial role of property management. To avoid this pitfall, you need to observe some of these crucial aspects;
Basic Service Provided by Property Managers
As a property owner, catering for your property might appear a walk in the park. However, the services provided by managers form a complex spectrum which would definitely need your full time attention. Some of these services include;
- Rent collection; this is the most crucial role a manager brings to the table. They will not only collect and bank rent but also keep updated records on delinquency rates and other cash flow reports on your behalf.
- Maintenance; your property has to stay in tip top condition and the manager thus evaluates vendors, suppliers, equipment and all services provided. This in turn ensures the safety of the tenants is guaranteed hence improving their satisfaction.
- Bill payments; you are assured that no supplier will wake you from bed due to unpaid bills and even mortgages are paid through a monthly check registration.
- Personnel supervision; all employees on your property are answerable to the manager and hence, hiring, firing and supervision becomes the duty of the manager.
Other crucial roles include maintaining good tenant relations through 24/7 response service, rental analysis and recommendations, and also provision of financial reports as agreed in the contract.
Choosing a Property Management Company
There is a plethora of companies in the industry and you need to select and work with only the right one. Some of the things to consider include the experience of the company in the local market to ensure any rental issues or recommendations must be based on market realities. Additionally, check how long the company has been in the property management business before investing your money in their services.
It is also critical to ask for referrals from the company in order to evaluate the quality of their work and also to assess their reputation among past clients. One of the other important things is the company’s insurance to ensure they can handle your kind of property sufficiently and without any downtimes. Check the licensing of the company in your state and this is very easy to authenticate especially with online sources. Finally, check the company’s affiliation in the industry and its associations to bodies such as CPM, CSM among others. In simple terms, it is advisable to work with a company that is already tested and which has something to show for its work. Integrity is the key here and hence, be on the lookout for a company that comes across as committed and dedicated.