Real estate is one of the most enticing ways to invest because it offers choices for different types of investors. However, owning property comes with its downsides like being accessible to your tenants at all times. Unless you dedicate all your time to managing your properties, achieving this is not usually easy. Property management companies have become popular for this specific purpose. With the right management team in charge, you can pursue other ventures without worrying about your rental apartment block being neglected. You can have real estate investments in different regions and entrust them to a property management team.
A property owner with great management professionals don’t have to be troubled by which tenant laws apply where, dealing with problematic tenants or maintenance. Without a property management company to help with your rental estate investments, you may need to hire several workers like electricians, plumbers and resident managers, which means having to deal with the hassle that comes with being an employer. But, how do you identify a property management agency that suits your purpose given the numerous options?
What Type of Properties Do They Manage
Most of the letting and buying companies offer property management as an additional service, but others have it as an exclusive offering. The kind of partners that will suit your management requirements will depend on the range of services that you need. If you buy, sell and rent properties, a multi-faceted letting and management company would be a better fit. Ask about the type real estate that a particular management company deals with to be sure it is a good fit. Don’t hire a letting agency that only deals with residential properties to care for your commercial buildings.
A lot of homework goes into finding a property management firm that is an ideal match. Once you get prospects for the companies offering the services that you require, ask for their references. Think of hiring a property management firm as recruiting an employee. You want assurances that you are pairing with the right company. Get the contacts of previous and current clients the talk to them to find out about their experience working with that particular management agency. Go online to find reviews and testimonials of a property management firm to gauge other clients’ opinions. Check public records to see if the company as any complaints to the local business chamber. The resources you can use for this task will depend on where you are located.
Letting and property management companies charge between 8% and 12% commission. Rates fluctuate with how comprehensive the services are and the reputation of the company, among other aspects. A real estate management firm may also set a flat fee as opposed to a commission. Find out what the fees cover. Will the management team be responsible for hiring contractors, screening tenants and advertising campaigns? Knowing what is included in the agreed fees will prevent additional expenses later on.
Licence and Insurance
The legitimacy of a property management company is everything when looking for professionals to help with your real estate investment. When deciding whether to hire a certain management firm or not, ask about its licensing. A licensed company is one that you can trust because it operates under specific regulations. Liability insurance is another feature that you should ask about before hiring a management company. Some regions may require management firms to have liability insurance, so confirm that first. If the management company provides maintenance services, you want assurances that the various contractors that end up working on your property are properly insured.
Regardless of how good a property management company looks at first glance, don’t retain its services right away. Get at least three management firms to bid then compare every aspect, not just their prices. A management agency may offer enticing rates, but it may be doing that to undercut its competition at the expense of the service quality. Focus on other elements that matter as much as the cost such as the standard of marketing campaigns. Even when you feel sure about an initial pick, comparing it with other providers may bring up new questions that you may not have considered.
A letting and property management company can make it easier to look after your real estate investments, so put resources into finding the right one.