How do you choose a good property management company?

Question

There is a good blog post about reasons to use property management company

Five Good Reasons to Use a Property Management Company

http://www.colonyamericanfinance.com/five-good-rea...

But the question is, how do you find a good property management company? Any input will be appreciated!

Penny Clark · Answer

@Eric Kang, I manage my own properties because they're in my city. However, if I lived more than an hour away, I'd hire a property manager. Being in the business, three things I'd look for are:

1) What is their response rate like (Do they return emails and calls within a couple hours or sooner)? Are they willing to answer questions you have such as vacancy rate in the area, how they handle repairs, etc. WITHOUT you signing a management agreement?  If they brush you off or return your call two days late, that is what you can expect when you sign with them.

2) Are they willing to send you the management agreement and lease they use prior to signing so you can review it? This way, you can review the lease up fee, management fee, how they handle utilities and other payments as well as vendors. A professional company will not have any issues sending you that information.

3)  I would also want to know how long they've been in business, how many units they manage and what management experience they have. For example, if your properties accept housing vouchers, what experience do they have with these programs?

We all want someone to care for our properties as we would, so put in the time to ask these questions. Resist the urge to settle with a company who may offer the cheapest deal. Just my two cents!

Good luck!

Christine Kankowski · Answer

Calling them up and having a conversation about your expectations will yield a great deal of information.   Do they answer their phone>  Are they receptive to your questions? Do they have systems in place for repairs, leasing, etc?  Do they have good reviews online? do they take online applications and rent payments?  Ask them if there are any home that they do not take?  This will tell you a lot about their professionalism, their own expectations of owner, etc.  To make sure they are the right match for you.

Dana Dunford · Answer

@Eric Kang--

Here is my process to determine whether I should get a property manager and who I should use:

• Do I need a leasing agent, property manager, or manage it myself?Leasing Agent:Pro: They help with #1 - 3 (from your link)Pro: I get my weekends backPro: They know the market prices and can adjust accordinglyCon: Typically charge .5 - 1 month's rent for lease up
• Leasing Agent:Pro: They help with #1 - 3 (from your link)Pro: I get my weekends backPro: They know the market prices and can adjust accordinglyCon: Typically charge .5 - 1 month's rent for lease up
• Pro: They help with #1 - 3 (from your link)
• Pro: I get my weekends back
• Pro: They know the market prices and can adjust accordingly
• Con: Typically charge .5 - 1 month's rent for lease up
• Property Manager:Pro: They help with everything (from your link) - hands off!Con: They reduce my monthly cash flow (6 - 10%)
• Pro: They help with everything (from your link) - hands off!
• Con: They reduce my monthly cash flow (6 - 10%)
• Manage it myself:Pro: My cash flow is increased (at expense of time)Pro: Online tools make it easier for me to remotely manageCon: Time-consuming, especially during the leasing process
• Pro: My cash flow is increased (at expense of time)
• Pro: Online tools make it easier for me to remotely manage
• Con: Time-consuming, especially during the leasing process

• Leasing Agent:Pro: They help with #1 - 3 (from your link)Pro: I get my weekends backPro: They know the market prices and can adjust accordinglyCon: Typically charge .5 - 1 month's rent for lease up
• Pro: They help with #1 - 3 (from your link)
• Pro: I get my weekends back
• Pro: They know the market prices and can adjust accordingly
• Con: Typically charge .5 - 1 month's rent for lease up

• Pro: They help with #1 - 3 (from your link)
• Pro: I get my weekends back
• Pro: They know the market prices and can adjust accordingly
• Con: Typically charge .5 - 1 month's rent for lease up

• Pro: They help with everything (from your link) - hands off!
• Con: They reduce my monthly cash flow (6 - 10%)

• Pro: My cash flow is increased (at expense of time)
• Pro: Online tools make it easier for me to remotely manage
• Con: Time-consuming, especially during the leasing process

• I go online and get reviews and quotes (Yelp, Thumbtack)
• I ask for 3 referrals or reach out to those people (note: I also ask tenants, since I want to make sure my tenants are happy and treated well)
• I ask what online tools and processes they use (for example, if they don't have an option to collect rent online ... then they seem pretty inefficient to me) 
• I ask about transparency -- will they provide me with the background check, lease agreements, etc.? I want online copies of everything, in case I need to take over. 
• Here's a great post from BP on the Questions to ask a PM

I've always found that I need someone to help with the leasing but I can perform the day-to-day management remotely. It strikes a good balance for me, but others will want complete hands-off and use a management company. As long as you weigh the pros and cons, then you'll be able to figure out a good balance.