When it comes to choosing a property management company, it can seem like a bit of a minefield of information and this is especially true if you are just setting up a property portfolio of any substance. The most important aspect of estate management is to make sure a portfolio works in your favor, maximizing any value and income as time goes by.
If you are thinking about having a property investment portfolio managed by a third party, there are certain other factors that need to be taken into account and knowing what questions to ask will go a long way in deciding which company to sign up to.
Computerized property management is essential in a fast moving world Tailor Made Property Management Package Because every property owner has different long-term objectives, it’s important the management company to offer you a package to suit not only your needs but the type of properties contained in your portfolio too. It is essential the company understands your long-term investment goals whilst at the same time managing all the necessary daily and monthly tasks like collecting rents and service charges as well as dealing with essential property maintenance and factoring in dilapidations.
Letting the Experts Manage Your Properties It goes without saying that leaving it up to the experts makes life easier all round when it comes to managing properties you own and rent out. However, you need to know the company you decide to work with specializes in the type of properties you own as an investment. In short, if you own residential properties, then choosing a management company that deals in that area of the market is essential.
If on the other hand, you own a commercial property, then signing up with an expert commercial property Management Company is the right route to take because they will have all the right tools and contacts to handle it whereas a residential management company may not. It’s always a good idea to check out a few property management companies before deciding which one to sign up with. Knowing what questions to ask is essential because it means you know just what you expect a property management company would be able to offer you.
Your end goal should be to get the best advice and service but for a reasonable commission. However, other factors and questions you need to ask are as follows: What are the company’s advertising strategies? A top property management company will be proactive when it comes to advertising the properties they have on their books. The last thing you want is for your property to remain vacant for any length of time because it means you’ll be losing valuable rent and therefore income.
A property management company has to offer a top notch service How Are Potential Tenants Screened? When it comes to how tenants are screened by a property management company, it is crucial that thorough background checks are made and that references are taken before a contract can be signed. A bad tenant in a property can turn into a nightmare scenario where rents may not be paid, the property damaged and other things which can be avoided by carrying out a background check.
How Does the Management Company Deal with Overdue Rents? This is another very important factor which needs to be established from the word go. A reputable, well established property management company will have a set plan in place for dealing with overdue rents and you need to know it is an effective one.
How Are Emergencies Dealt with? You also need to ask the company how they deal with any emergencies which may occur at your property and especially when they happen after hours. Their plan has to be one that’s reliable and which ensures that problems are fixed quickly and efficiently with the minimum amount of fuss and bother to the tenant and which minimizes the risk of extra damage to your property.
Ask About Fee Structure You need to establish how the property management company structures their fees and how much of the rent would be taken in commission. This can vary from company to company which is why it’s a good idea to check a few out before deciding which one to sign up to. However, the quality of service a company offers you is a very important factor too.
A well-established property management company will offer valuation advice Make Sure You Read the Fine Prints with any contract, you need to read the fine print before signing up to a property management company so you don’t have any unwanted surprises a little further down the line. You also need to be sure the company will help you improve your property portfolio should you wish to make further investments in the future. A well-established property management company would be able to help you find the right type of property for future investments at interesting prices usually because they have not yet come onto the market.
Make Sure They Boast a Comprehensive Database It goes without saying that a property management company should boast a comprehensive database and resources they can fall back on when they need to. This includes having good relationships with solicitors, financial institutions as well as builders, plumbers and other professionals.
Building up a Strong Relationship is Essential You need to know the property management company you sign up with is one that you will be able to form a strong relationship with so that not only are your present property investments well managed, but any future ones would be as well. You have to feel confident they are in for the long haul with you and that your interests would always be taken care of in a professional manner.