Hiring a Property Management Company ­ What Should You Look For?

Are you thinking about hiring a property manager? There are a few things you need to know before making that decision. The manager you choose may improve the value of your property and keep tenants happy, or he may cost you money over time. It is important you make the right choice in the beginning to ensure you get good value for your money with the real estate property management company you select.

Screening and Handling Tenants

The residential property management company you choose must have a good record of screening and handling tenants. Some managers fail to perform a thorough background check, resulting in a poor tenant that does not take care of the property or continuously violates the terms of their contract. The manager you select must have a keen eye for choosing the kind of tenants you want renting your residential property. To determine if your chosen company has the eye for good tenants, make a personal visit to some of the properties they manage. The trip will enable you to gain insight about the track record of the companies on your shortlist.

Another characteristic to look for when choosing a property management company is their record in handling and treating tenants. Are they tenant centered when making decisions about fees, repairs and maintenance of the property they lease? This is an important trait because it will attract first rate tenants that are willing to pay a higher rate and take care of the property they are renting.

A real estate property management company must respond to tenant needs quickly. The manager must address problems such as repairs, leaky roofing and plumbing, holes in the walls and faulty wiring as soon as possible to keep tenants happy.

Management Fees

Property management fees are important, but you must not base your decision solely on who charges the lowest fees. Compare it with what the other firms are charging, the scope of services offered and their quality. A lower price may indicate that they acknowledge their services aren’t very good or it could be an attempt to gain your business by undercutting competitors. The last thing to consider when hiring a property manager is price. You must determine if the company you have chosen will provide the services you require for a rate that is fair based on your needs. What good will low fees bring if the manager performs poorly?

Management Background

Does the company you want to hire have capable managers? Do they care about tenants? Do they know how to market property and retain tenants?

The vacancy rate of the properties a company manages is a very telling sign of their capability to keep tenants.

Are they visible when it comes to marketing properties they manage? Check for any listings, ads and other promotional materials they use. This is a clear indicator of their expertise and management capability.

These are some of the things you must consider when hiring a residential property management company. They will either lead to no vacancies and high profitability or difficulty in keeping tenants and profit losses.

Reasons that Stop First­time Buyers from Purchasing Property for Investment

Many people show interest in buying property as a form of investment, regardless of whether they will live in it or lease it. Residential property management companies agree that purchasing a property is an investment because it’s typically the largest purchase an individual makes. It is costly, not only to buy, but also to maintain.

Certain reasons will make one hesitant when buying property as an investment.

Drop in Value

Property can decline in value, even without a disaster striking it or the area around it. Neighborhoods may gradually decline when newly built homes attract prospective buyers. For commercial property, jobs may transfer to other cities where there is more talent and a larger market. The construction of landfills, prisons, highways, etc may also affect the value of property.

Even the savviest buyers cannot predict the future of the market. However, taking precautions when making an investment can reduce the likelihood of profit loss. For instance, purchasing property in a low-crime neighborhood, choosing only well-kept properties or buying a property that is in a centrally located area. With help from a real estate property management company, you can make informed decision that will get you the best value for your money.

High Maintenance Costs

All types of property, whether they are commercial or residential, require maintenance. Maintenance fees may scare away potential buyers because of the high cost of upkeep. To minimize costs, buy property that is new or in good condition. This substantially reduces your overall costs in the long-run. It’s also important to choose property that has major components like roofing, heating, cooling, plumbing, etc that have been upgraded or replaced recently.

Buyer’s Remorse

Most potential buyers are afraid of making the wrong decision, hence the remorse they often feel. This may be because of uncertainties about what they want, what type of business they want to pursue or they may be unsure about how much money they will make. To alleviate some of this regret, buyers should make a list of must-have features and nice-to-have features.

Look at the price range of properties available to determine, if you have the resources to afford any of them. Avoid exceeding your budget, as you will later realize that it only strained your wallet and decreased flexibility for future investments.

These are some of the reasons first-time buyers shy away from investing in property. These fears are worth noting because they are real things that could happen to any prospective buyer. Residential property management companies agree that one must always be cautious when it comes to investing in real estate, whether residential or commercial.