Did you know that 40 million Americans move each year? If you own a rental property, there’s no shortage of interested candidates looking to find a new home. But if you need to oversee all aspects of the rental property management process, you may want to enlist some help.
Read on to learn how to select a property management service!
Table of Contents
Look at the Services Offered
Before committing to a property management service, understand what they will do for you. Will they do the accounting? How does the service handle rental property maintenance?
These are common questions to ask when you interview a potential service. You may need help screening tenants, for instance. Or you might prefer a service that can have someone on hand during weekdays to do tours and answer questions.
Hire a company that will complete the services you need. Find out the full scope of options, too, in case you take on more multi family properties down the road and need more help.
Understand the Fee Structure
Having a transparent understanding of the fee structure can help when comparing property management costs. Don’t necessarily go with the cheapest service, either. A property management service that is cheaper may cut corners or lack experience.
As a rule of thumb, you may spend around 10% on a monthly management fee. In addition, there may be onboarding fees as well as transition fees when tenants vacate a space.
While these costs may cut into your bottom line, they can help you make more money going forward. A professional property management service reflects well on you. And that will help tenants feel valued and want to stay put.
Choose a Licensed Service
Regardless of where you live, a property management service probably will need to be licensed. As the property owner, you need to ensure that the company you hire has the right licenses.
For instance, some services will need real estate broker licenses. In other states, however, such a license is only necessary for commercial properties. Be sure to check the requirements in your state.
Further, a service needs to have general liability insurance, as well as other policies. These policies help protect you in case anything goes wrong on your property.
Check Reviews and Experience
Reading online reviews always is a smart strategy when you’re looking for a property management service. Look for recurring comments in the reviews that might be red flags. For example, a management service may be sluggish to respond to tenant concerns.
Source as many reviews as you can to form a complete picture. Look for evidence that the company is professional and has property management experience!
Learn How to Select a Property Management Service
Select a property management service with positive reviews and ample experience. You want to be able to trust that your property management service can handle all of the tasks you assign. And you need to confirm that they are licensed.
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