Property management companies oversee commercial or residential real estates, including condos, detached houses, and apartments. Their primary responsibility will be to manage the property that is owned by another company or person.
You may need to hire a property management company if you lack the time or the energy to maintain the property and deal with the tenants yourself. When looking for a high-quality property management company such as Valet Living, there are several qualities that you will want to look for, and that’s what we’re going to talk about today.
Here are the top four qualities to look for in a property management company:
1. Good Credentials
The very first thing that you will want to look for in a property management company is their credentials, and specifically their licensing. Take note that the licensing requirements for property management companies vary by the state, but most of the states currently require that all property management companies be licensed by a local real estate board.
Having a real estate broker’s license in particular means that the management company will be able to list rental properties in a multiple listing service, and then market the properties using traditional realtor methods. This will greatly increase the odds that you will get tenants to rent your properties much sooner because the visibility of your rental properties in the first place will be increased.
The ideal management company to work with will be one that is mid-sized with the right credentials and a good reputation. Even though small-sized companies can definitely give you very personalized service, they also may not be big enough to handle all of the management challenges that your property presents.
Meanwhile, large companies may only treat you as another client among the vast array of clients they have already and not offer the most personalized service. A mid-sized company can offer the best of both worlds, assuming they have a good reputation to back them up.
3. Regular and Thorough Property Inspections
Good property management companies will always offer regular indoor and outdoor property inspections. At the very least, you should expect the company to perform property inspects once every six months, but once every three or four months would be even better. A management company that only offers to perform inspections once a year or less should be avoided.
These inspections should be very thorough as well, and whoever performs them should be looking for things such as making sure that all appliances, locks, plumbing, electricity, smoke detectors, furnaces, and water heaters are in good working order. They should also look for any signs that the lease agreement has been violated as well.
The company should also give the tenants a minimum of forty-eight hours advance notice before entering the property to perform the inspection.
4. Fair Rental Rates
Rental income is how landlords make most of their money, and fair rental rates are something that you will want to look for in any property management company.
A golden rule that many property management companies follow is to charge 1% of the property’s overall value as the monthly rent. However, the company may charge more or less than this amount based on the current market data.
When looking for a property management company, you should ask them how they figure out what the rent will be. The best property managers should display that they have excellent knowledge of the local market, as well as what comparable properties are charging for rent in the area as well.
You should additionally look for property management companies that will perform a rental rate survey at least once a year, and more often if there are any lease renewals or vacancies.
Working With A Property Management Company
Choosing a property management company or firm to work with is a big decision, and is going to have a direct impact on your real estate investments. A good project management company will have all of the qualities that we have covered above.
The purpose of this article has been to help teach you the primary qualities to look for in a company to manage your properties for you. Now that you know what to look for, narrowing down your list of options should be no issue.