Choosing THE RIGHT Property Management Company

As an investor, or as an Agent referring your client, it’s a difficult decision who the right company is to protect you and your assets. I’m sure we’ve all heard horror stories about management companies not preforming as promised, or worse, engaging in illegal or immoral activity, or scam artists on Craigslist taking advantage of people. These are valid concerns, but there are ways to make sure you end up with a trustworthy company that will put the client’s best interests first.

First, everyone has heard the phrase “you get what you pay for”. This is absolutely true for management companies as well. A lot of consumers are drawn to the lowest rate, but watch out for this. A lot of the time it will end up costing considerably more if they don’t manage the variables well. Repairs can get more expensive if they’re not handled well and quickly, with licensed, bonded and insured vendors. And vacancy will be a landlord’s biggest expense. If the tenants are not satisfied with their living environment, and landlord tenant law isn’t followed, it’s easy to end up with an empty investment fast, or in sticky legal situations.

The second thing to look for is accountability. Do they get back to you quickly? Do they have systems in place to make sure any issues are taken care of in a timely fashion? Do they obligate you to a long term contact? This is a red flag. Companies that have good track records don’t need to trap you in a contract. Look for someone with no cancellation fees, it’s a good indicator that owners are happy with them and stay long term without obligation.

As mentioned above, vacancy is the biggest expense for buy and hold investors. Look at the Management Company’s occupancy percentage. If it’s over 90% it’s a good sign they get properties rented quickly. Turn time is important when owning a rental, you’ll want to make sure that they can get your property “rent ready” and have marketing systems in place to secure good new tenants quickly.

And lastly, along those lines, make sure they screen applicants thoroughly. There’s nothing worse than having a bad tenant in a long term lease. A great Property Manager will run background, credit, and rental history checks, to make sure the property is well taken care of, and there are the least problems possible throughout the lease term. Being a landlord can be a huge undertaking, but with THE RIGHT Company, they can make it as easy and stress free as possible.