You carefully, selected your investment property and made it though all the hurdles to get through closing. Now, you need to someone to manage it. Finding the best property management company can be a daunting task, but it doesn’t have to be if you set some criteria and follow your gut. Here are some tips to help you find the best property management company:
- Responsiveness and communication / Customer Service: This is hands down, the most important criteria. If I had to pick on only one aspect, this would be it. If your property management company shines when it comes to legal compliance or has great accounting software, but DOESN’T pick up the phone and try to solve peoples’ problems effectively, it will be all for nothing. A good property management company provides the most value through its handling of tenant and contractor personalities. Handling those well, will let most other things fall into place. Keeping tenants happy keeps your occupancy high which means a more profitable investment for you. Keeping contractors happy means lower expenses and a more profitable investment for you!
- Financial management: Look for a company that has strong financial management practices in place, including accurate accounting, budgeting and reporting. Ask what sort of software they use and how easy it will be to access the expenses and rents collected for the property.
- Legal compliance: A reputable property management company should be knowledgeable about local and state laws and regulations regarding property management, including fair housing laws and eviction procedures. You can also check to see if the company has any complaints against them regarding fair housing.
- Tenant screening and retention: A good property management company should have a thorough tenant screening process in place and should be able to effectively manage tenant relationships to minimize turnover and increase retention. Ask how often they have to evict tenants.
- Experience and expertise: Look for a company that has experience managing properties similar to yours and has a team of experts who can provide the services you need. Do they have contractors that they work with regularly?
By following these or similar criteria, you can find a property management company that will help you manage your property efficiently with few (if any headaches), while also protecting your investment.