You’ve shopped for the perfect property, completed the transaction and are now the proud owner of a rental property. Or perhaps you’re in the market to add to an existing cache of rentals. Whatever your situation, now is an excellent time to get into the rental market. According to the Rental Protection Agency’s current Rental Clock, there are more than 111 million renters in America, with 2,600+ new renters entering the market every day.
While some rental property owners choose to participate in the process from A to Z, many opt to hire a property manager. Hiring a property management company can alleviate some of the stresses of being a landlord. You are free to focus on other pursuits while the company takes care of sourcing qualified tenants, handling rent payments, and other day-to-day aspects of renting.
Here are five things to consider when looking for the perfect property management company:
- Vet Potential PM Candidates
Obtain references from the company and look at BBB ratings before selecting someone to handle your income properties. Ideally, your property manager should be experienced and plugged into the real estate market in your community.
- Ask Questions
Some property owners are hesitant to ask questions of potential property managers. After all, they’re the experts, right? Not asking enough questions is one of the biggest mistakes you can make. A good property management company will respond to queries in a timely manner and provide satisfactory answers.
Questions to ask include:
- How many properties are you currently managing?
- How many employees does your company have, and who will be managing my properties?
- How long have you been in business? Is property management your only business?
- How are tenant problems (late rent, repairs, evictions, etc.) handled?
- Look at the Lease Agreement
Familiarize yourself with the lease paperwork your property manager will be using with tenants, as well as what the rental qualifications and deposit amounts collected will be for applicants. While you may be less involved in the tenant screening and selection process, be sure you’re comfortable with your property management company’s process.
- Check Costs
The average property manager charges between 8-10% of rents collected. Shield Property Management’s fees are in this range; varying based on the level of service required. You’ll want to factor this percentage into the amount you ask for rent, above and beyond monthly payments, taxes, repair budgets and any other moneys you may owe on your property. We can also help you compare rental rates in the current market to determine the appropriate monthly rent for your income property.
- Trust Your Instincts
Ultimately, you want to select a property manager you trust to handle your investment property or portfolio. Positive first impressions and regular communication (in reasonable amounts) will likely make for a strong and long-lasting relationship.
At Shield Property Management, we understand the value of your income property. Whether you are looking to rent your former home following a move or have a full portfolio of available condos, townhomes or houses in the Valley, we’re here to help you manage day-to-day operations of your rentals. Contact us directly at 480-699-7206 for more information on our company and the services we offer.Contact us