How to Find the Right Property Management Company for You

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Whether you’re looking for the first time or you’re trying to decide if you should switch, knowing what to watch out for in a property management company comes in handy. This guide walks you through what traps to avoid, what to look for, and what questions to ask when you’re looking for a new property management company.

3 Tell-Tale Signs Your Property Management Company Is Taking Advantage of YouYour investment property is your baby. No one worries more about the care for (and cash flow from) your property more than you. Considering this, it can be hard to trust that your property management team is protecting your investment and helping you make the kind of gain you’re hoping for.

After all, everyone’s got to make money. It’s only natural that your property manager has their own best interests at heart, right?

Wrong.A property management company will not be successful for very long if all they are concerned about is making an extra buck off you.

The type of property management team you want to work with knows that your best interests are in their best interest. They know that if they put you first and take care of your investment as if it were their own, then their success will follow. Ultimately, nothing beats a solid and trustworthy reputation.

So, don’t all property management teams want a stellar name and great client referrals? You would think, but it seems many companies are short-sighted. They are more concerned about putting an extra dollar in their pockets now than being in business later.

Here are 3 tell-tale signs your property management company is taking advantage of you:

1. THEIR RECORDS ARE INCOMPLETE OR UNINTELLIGIBLE

It is your property manager’s job to manage the budget and maintain records of all income and any expenses made. They should have a detailed record of items including, but not limited to:

• Signed Leases • Rent Collection and Rent Changes • Vacancies • Inspections • Complaints • Maintenance Requests • Cost of Maintenance and Repairs • Insurance Fees

If your property management company is unable to show you complete, clear, and detailed information of all the comings and goings of your investment property, then either they can’t be trusted or they are just plain sloppy. Whatever the case, you deserve much more and should take bad record keeping as a sign that it might be time to find a more responsible partner.

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2. THEY DON’T PERFORM PROPER SCREENING OF POTENTIAL TENANTS

Any property investor or property management company knows that vacancies = financial loss. That being said, a slightly longer vacancy can make a much smaller dent than choosing the wrong tenant.

How bad could it be? The wrong tenant could mean, among other examples:

• Unpaid Rent • Property Damage • Driving Away Other Tenants • Eviction (plus the associated cost and consequent vacancy)

Your property management team should do their best to lease your property to a suitable tenant. Failure to complete the necessary screening just to hurry and fill a vacancy may demonstrate that your property manager will cut serious corners just to keep the cash flowing. The consequences could be problematic all the way round. Any vacancy issues should be communicated rather than handled inappropriately.

3. THEY USE THEIR OWN MAINTENANCE AND REPAIR VENDORS EVEN WHEN THEIR RATES AREN’T COMPETITIVE

There is technically nothing wrong with your property management company hiring their own maintenance and repair personnel to work on your property. However, keep an eye on this practice, especially if you find their bid exorbitant for the work that needs to be done or if the work is done poorly.

Why? There’s a decent chance that your property manager is getting a cut by contracting their own personnel. They may even encourage their maintenance crew to create a high bid because it means they both get to pocket the extra cash.

CONCLUSIONYour investment property is precisely that– your investment. If you suspect that your property management team is abusing your business in order to make a little extra, you have the right to refuse to do business with them any longer.

You deserve a mutually beneficial partnership. A property manager who understands this and wants to earn your trust will protect and respect your investment like it is their own.

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How to Find the Right Property ManagerIf you’ve realized that your current property manager has been taking advantage of you, then it’s time to switch. However, finding someone you know will look after your best interests and take care of your properties is easier said than done. Here are a few tips on how to find the right property manager:

UNDERSTANDING YOUR NEEDSThe world of real estate investment is so diverse that it’s difficult to find a property manager who fits the needs of every real estate investor.

Once you have determined the needs you need to have a property manager fulfill, you will have a framework that you can use when developing a database of candidates.

EXPANDING YOUR POSSIBILITIESIt’s not wise for you to choose the first property management firm that you come across. Instead, you need to accumulate a large list and starting working through each one individually. You will have some difficulties developing this list unless you have generated some questions that you will want to ask to property management possibilities.

ADDING ITEMS TO YOUR CHECKLISTAs part of the process you go through when determining your needs, you will want to have a checklist that you will use to evaluate each property manager.

While you don’t necessarily have to use this checklist with every candidate, it’s advised that you keep the items on your checklist in mind when you’re in the evaluation stage.

LOOKING PAST THE INTERVIEWSTraditionally, the biggest part of choosing someone for a position is the interview stage.

Interviewing should play an important part in picking a property manager. At the same, there are many other variables that you should consider. Delve deep into their history and get a sense of what they have accomplished and how that fits into your mission.

RECOGNIZING FACTORS WORTH CONSIDERINGAdvertising property vacancies is probably the most important duty for a

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property manager outside of the process that they use to screen tenants. Both of these responsibilities should rank high on your list because they determine the viability of a particular property.

On occasion, your property manager will have to show the properties they manage. For that reason, the individual you choose to takeover this position should be skilled in this regard.

ADDRESSING DIFFICULT SITUATIONSThe job of a property manager will have some difficult aspects as well. You have to determine how they will collect past-due rents, control maintenance costs, and deal with after-hours emergencies. Your goal should be to have as little tenant turnover as possible. With a good property manager in place, this goal will be easily achievable.

REVISITING THE ARRANGEMENTAs soon as you have a property manager in place, you will likely want to sit back and want to stick with them for an indefinite period of time. You should peer in from time to time to determine their current level of effectiveness. An ineffective property manager will drive down revenues across the board. You can’t stick with a property manager that’s unable to get the job done.

Finding the right property management company for you is possible. If you follow the advice given in above, you are sure to find a reliable company that you can trust.

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Once you think you’ve found a property management company that fits the right criteria, what questions should you ask to make sure they’re reliable? Below are the questions you should ask each property management company that you are considering.

HOW DO THEY HANDLE MAINTENANCE?One of the differences between reliable maintenance and half-baked maintenance is attention to detail. A company that attends only to emergencies or service calls will end up costing you more money in the end. A technician that sees a problem before it happens and fixes things before they break saves you money and keeps your tenants happy.

Find out if a prospective company keeps maintenance schedules and ask for the list of associated costs. Be sure you understand their process for ordering preventive maintenance so you aren’t surprised by extra costs.

WHAT’S THE PROCEDURE FOR EMERGENCIES?The main reason you want to hire property maintenance is probably so you’re not running out in the wee hours several times a week. Find out exactly how a maintenance company handles emergencies. Get the small print on their emergency services:

• Extra fees for after-hours service • Response time • Services offered • Level of experience of the technicians

WHAT ARE THE FEE STRUCTURE AND ACCOUNTING PROCEDURES?Great maintenance at the right price is tricky to find. Many companies charge by the service. Others charge you a flat rate for a maintenance plan. Ask about fee structure before you sign a contract so you know exactly what to expect.

Aside from keeping your property in good repair, don’t forget you need to have accounting records for taxes. If your property maintenance service tracks repair costs well, it makes your job all the easier. Find out about accounting practices so you’re not caught in a stack of confusing papers at tax time.

DO THEY HAVE SUFFICIENT LIABILITY COVERAGE?You can never be too safe. It is extremely important to make sure a service company is licensed, bonded, and insured so you’re protected from law suits and liability. Ask for the details so you’re not stuck if they have insufficient coverage.

Don’t allow yourself to skimp on coverage. Even though it seems unlikely that a technician could cause a fire or flood, you’ll be glad you’re not left holding the bill if it does happen.

Questions That GUARANTEE You’ll Find a Reliable Maintenance Company

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1150 Foothill Blvd., Suite E, La Canada, California 91011

You are now an expert on what the signs are when your property management company is taking advantage of you as well as what makes a great property management company and what questions you should ask. Now that you can tell the difference between an unreliable and reliable property management company, where should you start looking? ABC Property Management knows that your best interests are in our best interest. We know that if we put you first and take care of your investment as if it was our own, then our success will follow. Ultimately, nothing beats a solid and trustworthy reputation. If you’re ready to switch to a property management company you can rely on, then ABC Property Management is the company for you!

www.managedbyabc.com