If you have a house that you’re thinking about renting out to tenants but a part of you is hesitant because you’re not exactly thrilled about becoming a landlord, there is another option to consider: you can hire a property management company to take care of the landlord responsibilities for you. That way, all you have to do is send them a percentage of the rent that you collect. Everything else will be solely up to them.
If this sounds like something you would be interested in doing but you’re not exactly sure what you should look for in a property management company, this article is going to share with you some things that you should consider in the midst of your search.
Ask how much they charge. You’re only going to end up frustrated if you hire a property management company that takes most of your earnings. That’s why it’s always smart to first inquire about how much a company charges. Although there are some that charge 5 percent and others as much as 35-40 percent, around 15 percent is pretty standard. Whatever rate you’re comfortable with, just make sure that you confirm what services you can expect with that fee. You can read more about what you can legally request a property management company to do by going to HMRE.net and putting “what does a property management company do” in the search field.
Do some inquiring about their reputation. You don’t want to hire a company solely based on their own opinion of how good they are. So as you’re in the process of interviewing prospective candidates, ask them to provide you with 3-5 references. It should consist of a couple of former clients and current ones too.
See if they have a maintenance crew. There are some property management companies that are willing to do no more than collecting rent and minor upkeep tasks like taking care of the lawn. If that’s all that you need, then they’ll work just fine. But if you would prefer to be as hands-off as possible, look for the kind of company that has a full-service maintenance crew. That way, should your house need some type of repair, the property management company can take care of it instead of you.
Look into how much they invest in tenants. Say that you know someone who works for the Greenlee Realty Group and you asked them for advice on what you should look for when you’re looking to hire a property manager. One thing that they might mention is to seek a property management company that will not only collect rent but will look for the right tenants, handle any issues the tenants may have, and also take care of late fees, too.
Make sure they are easy to reach. It will only end up stressing you out if you have the kind of property manager who can only be reached by phone or during certain hours of the day. Good communication is key when you’re working with a property management company. So before entering into a formal agreement with one, make sure that they are reachable by phone and email and that they can also be contacted in case of any emergency. When you have found a company that meets all of this criteria, then you know that you’ve found the perfect one for you and your home!