Choosing a Property Management Company for Your Rental Property

Choosing a Property Management Company for Your Rental Property


One great aspect of owning a rental property is its earning potential. While you may have other motivation behind ownership, one important factor to consider is how much time and effort go into actually managing a rental property.

That's where choosing a property management company for your rental property comes in. And, of course, you want to make this decision carefully. “You are entrusting probably one of the biggest investments you’ll make into the hands of someone else, so you want to make sure you feel confident that they’ll handle things the way you want them to,” says Grace Langham, CEO of Nest DC, an award-winning boutique property management firm in Washington, D.C.

Keeping this in mind, here are a few items for you to consider when choosing a property management company:

Information and communication

Your property manager should keep you informed about the status of your property proactively. Items such as upcoming maintenance expenses, lease renewals, and general inspection information should be readily available to you as the property owner. The method of communication may vary from telephone conversations with property management staff to texts, emails, or even online access via the web or remote app.

Renters

A major objective of renting your property is to maximize its earning potential. A property manager should understand your rental objectives (long term for an income property, short term for vacation rentals, etc.). This is critical in keeping the property at maximum earning capacity. Additionally, a reputable property management firm is well versed in local laws and ordinances, understands renters’ rights, and treats renters fairly while representing your interests adequately.

Fees

Fees are generally computed as a percentage of monthly lease rates. Be sure you understand the entire fee structure when making your property management company decision. What is the rate? How is it billed/collected? What about additional fees regarding maintenance, legal issues, or unforeseen things like insurance claims? A good property management firm that serves your best interests is motivated to keep your property in good condition, occupied and earning.

Inspections and Oversight

It’s important that you (and therefore, your property manager) have periodic updates regarding the status and condition of your property. Management visits accomplish this. The frequency of your visits may vary, as you may not want to be intrusive. However, your property management firm must inspect and validate the property’s condition as a part of their services. This protects both you and tenants, and helps keep you informed and less likely to be surprised by any maintenance issues or occupancy conditions that are unwarranted.

Marketing

A property management firm you choose should be able to demonstrate effective means to keep your property occupied in order to maximize its earnings potential. This includes using a variety of marketing channels and technologies which assure optimal visibility when the property is vacant or otherwise available for rental. A property management firm should also be able to demonstrate expertise in the market where your property stands in order to assure optimal rental rates.

Technology

We are an on-demand generation of technology. Your property management firm should be making good use of all available technology for each of the items above. Communication, marketing, maintenance, and reporting should all be available to them (and to you) in a convenient and timely manner.


Although there are a variety of different objectives involved in owning a rental property, your specific goals should be aligned with the property management company you choose. In the long run, this will assure your satisfaction and help alleviate the stress involved in managing your rental property.


Related Resource

Zillow How to Choose a Property Manager for Your Rental Home

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