If you want to run a successful real estate investment group and not do all of the necessary work yourself, you should find a solid property management company that will oversee your investment properties just as well as you would. Use these tips, and you're bound to find a great property management company.
Ask for Referrals from Other Investors
When you talk with a property management company, ask them for a few referrals from other property investors in the area. These referrals give you an opportunity to check the other investors' general impression of the property management company and to ask them some specific questions. Specific questions like the following can be especially insightful:
- Why do you use this property management company and not a competitor?
- What returns have you seen with this property management company?
- Have you received any calls from the property management company outside of business hours?
- Are there other services you with the property management company offered?
This last question can be helpful, as sometimes companies aren't aware of what their clients want. If another investor mentions a service that you also would find beneficial, mention that to the property management company and ask whether they'll add it to their list of included services.
Check Online Reviews of Renters
To get a feel for how tenants view a property management company, check the online reviews for properties that the company manages. Tenants will rarely directly review a property management company, but they'll leave plenty of notes about how their residence is maintained and how well they like it. From these comments, you can extrapolate how well renters liked the property management company.
Find Out How Vacancies Are Listed
Vacancies are one of the biggest issues that any property investor faces, for a unit that vacant still has upkeep costs associated with it but doesn't generate any revenue. Thus, filling vacancies as quickly as possible is of the utmost importance.
To find out how aggressively a property management company addresses vacancies when units open up, find out how the company lists their vacant properties. The most aggressive companies will list properties online in several places and might also post available units in certain offline areas, such as local bulletin boards in the nearby area. In some cases, property management companies also list their units before they become available. Doing this can help ensure there's almost no lost revenue when tenants change.
Start comparing local property management services today to start the process.