New property owners and landlords might not know how to choose a property management company. However, it’s vital as picking the wrong company can jeopardize investments. The right property management company will protect your assets and boost your income.
Factors to Consider: How to Choose a Property Management Company
It’s not easy to know how to choose the right property management company. There are many factors to consider. Settling with the first company you find online is not a good idea. How do I choose a property management company? If that’s what you’re asking yourself, don’t worry. Here’s what you should know about how to pick a property management company.
1. Local Expertise
If you don’t know what to look for in a property management company, one of the first things you should do is start your search locally. This is because local firms are more familiar with the regional market. They know how to price your property and how to find tenants more quickly.
In addition, they should be more knowledgeable about relevant local, state, and federal laws. Local firms are also more likely to have long-standing connections with trusted vendors for repairs and maintenance services.
2. Referrals and Reviews
It’s hard to know how to choose a property manager when you’re alone. However, the task becomes easier if you have friends or connections already working with property management companies.
This is because your friends or acquaintances already have experience working with the companies they recommend. They can tell you which companies to avoid and what companies have provided them with good results.
However, double-check online reviews on Google, Yelp, or Facebook. Sites like the Better Business Bureau may also help. These reviews offer different perspectives and help you verify whether the company is good.
3. Full Range of Services
A good property management company should offer a full range of services. They should be able to handle everything from marketing and screening to property inspections, accounting, collections, and maintenance. This way, you’ll be able to make the most out of the money you spend.
Furthermore, choosing a management company that can provide the services you need is best. For example, if you want to dabble in real estate investment, you should find a company with experience selling investment properties.
4. Specialized Experience
Even if a company offers a full range of services, it may not have the experience you’re looking for. Make sure to find one with extensive experience related to the type of investment you’re looking into. For example, you may be handling commercial properties. In this case, it’s best to find a company with expertise in managing commercial instead of residential property.
If you don’t know what to ask property management companies, try asking these to gain some insight into their experiences:
- How long have you been managing rental property?
- Do you manage residential or commercial property? How many of each have you handled?
- How many rental properties do you manage right now?
5. Licenses and Certificates
Are you unsure how to tell if a property management company is legitimate? One of the best ways is by verifying their certificates and licenses. Reliable companies and property managers should always have updated professional certifications and licenses.
You can verify this by checking real estate broker licenses through your state’s real estate commission. It’s also a good sign if you find professional certifications and affiliations related to the property management company or manager.
You may think it’s okay to skip out on confirming licenses and certifications. However, some states may require property management companies to possess specific licenses. For instance, the California Business and Professions Code requires property management companies to have a broker license.
6. Insurance Coverage
Many property owners overlook the importance of insurance when learning how to choose a property management company. However, it’s an essential part of the search, as inadequate insurance can give you a lot of headaches. Ensure the company has adequate property insurance, general liability insurance, and errors and omissions policies.
7. Availability
Property management is a complex business and may require careful attention. Hence, it’s best to choose a property management company that is responsive, communicative, and available around the clock. Tenants will face problems and have questions regardless of the hour. The property management company should be ready to address these issues 24/7.
Look for 24-hour customer service, emergency support, and online portals. If a management company offers these services, they can address issues whenever they arise. This ensures that your tenants will always be satisfied and can reduce tenant turnover rates.
8. Large vs Boutique Experience
Property management companies may come in the form of small or large businesses. Smaller companies offer a friendly atmosphere and customized services. They may also be more attentive to their customer’s needs as they have fewer clients. This is why many landlords look for small local firms to manage their property.
Meanwhile, large companies may offer a fuller range of services. They may have more experience, resources, and staff to assist their clients. Furthermore, they may offer a level of service that small firms simply cannot match. However, they may also be less attentive to customers as they have many clients to deal with.
Think carefully about what kind of experience you would want. Weigh the pros and cons based on what’s most important to your venture before deciding on a company.
9. Value for Money
Cheap doesn’t always mean bad, while expensive doesn’t always mean good. It’s important not to base your decision only on the price. Ensure you’re getting enough value for money when you receive an offer. The company should provide the right services to cover your needs within the budget.
Moreover, it’s a good idea to compare contracts from various companies to gauge which ones offer the best deal. Some might offer too few services, while others offer just enough for the same price. Remember to get a quotation from at least three different companies.
A Pivotal Choice
Learning how to choose a property management company is critical. It can make or break your business and investments as these companies determine the experience you and your tenants will have. Make sure to choose wisely, as you will likely stick with them for a long time.
Are you looking for a trustworthy property management company in Florida? SurfRider Property Management offers the best services in the business. Call us today at 727-403-7088 or contact us online to learn how we can help you!