Why Hire a Property Management Company?

Question

Investing in real estate can be a profitable venture, but it can also be a lot of work. You may want to consider hiring a property management company to help with the day-to-day management of their investments.

Here are some benefits of hiring a property management company and some of the factors to consider when choosing the right one for your needs.

Property management companies offer a range of services to help property owners manage their investments. Some of the benefits of hiring a property management company include:

• Tenant Screening: Property management companies can help screen potential tenants to ensure they have a good rental history, stable income, and good credit. This can help reduce the risk of evictions and other problems down the road.
• Rent Collection: Property management companies can handle rent collection, ensuring that you receive your rent on time every month. They can also handle late payments, fees, and other financial matters.
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• Property Maintenance: Property management companies can handle maintenance requests and repairs, ensuring that your property is well-maintained and in good condition. This can help preserve the value of your investment and keep your tenants happy.
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• Legal Compliance: Property management companies can help ensure that your property is compliant with local and state laws and regulations, such as fair housing laws, building codes, and landlord-tenant laws.

Choosing the Right Property Management Company

When choosing a property management company, there are several factors to consider. Here are some things to look for:

• Experience: Look for a property management company with experience managing properties in Kokomo, Indiana. They should have a good understanding of the local real estate market and be familiar with local laws and regulations.
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• Services: Consider the services the property management company offers. Do they offer tenant screening, rent collection, and maintenance services? Do they offer 24/7 emergency services?
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• Reputation: Check online reviews and ask for references from the property management company. A good reputation is a strong indicator of a company's quality of service.
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• Cost: Consider the cost of the property management services. Look for a company that offers competitive pricing and transparent pricing structures.
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• Communication: Look for a property management company that communicates well with clients. They should be responsive to your needs and keep you informed about your property.

Hiring a property management company can be a wise investment!

Eliott Elias · Answer

I hope everyone here who claims they can self manage reads this. A true business owner will not self manage.

Drew Sygit · Answer

Great info!

We can add:

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

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