Property management is one of the most important things you need to know about owning rental property. It not only involves collecting rents and making repairs but also understanding tenant rights. This article will discuss four things that are crucial for all landlords to understand to manage their properties.
Finding The Right Management Company
The first step to successful property management is finding the right company. Not all companies are created equal, so you need to make sure that they have the experience and resources required for your specific situation before signing a contract with them. As stated by professionals on these locations, you need to ask for pricing and references and read those contracts carefully before signing them. Mainly, the pricing and terms depend on the size of the location and the number of units, but it is essential to remember that you always have the power and can negotiate these terms.
Finding the right company is not just about costs. You need to be sure that they have some screening process for your prospective tenants or at least verify their previous landlords before allowing them on the property. A good company will also ensure that tenant and landlord are protected throughout tenancy with a comprehensive lease agreement, which details every detail regarding rent, utilities, and responsibility.
Advertising Your Property
It is essential to know how your property management company will recruit tenants to your property. They should be advertising your property on all available platforms, whether it is online or in person. Make sure that they are not only using Craigslist but also other location-specific outlets like local newspapers and college boards to ensure maximum exposure for your rental.
Choosing the right company to manage your property is essential, but so is how they market it. Ensure that you understand what channels they will use and how effective these channels will be for attracting tenants before signing any contract with them.
Rent Collection And Tenant Screening
Property management companies handle rent collection for landlords, but they also do tenant screening on their own to save you time and effort. They will collect the information needed from potential tenants, including credit reports that show rental history and criminal backgrounds. This allows them to weed out bad tenants and save you the headache of having to do this yourself.
It is important to note that tenant screening costs vary depending on your location, property size, occupancy rate, etc. Plenty of companies offer these services at reasonable prices for landlords, or they can be done in-house if time allows. Remember, it is better to pay a little more for these services than risk homelessness because of a bad tenant.
Repairs And Maintenance
A good property management company will make sure that your properties are in tip-top shape at all times. They understand the importance of having the right tenants, and they want to keep them happy. Minor repairs, like leaky faucets or faulty appliances, are handled on the spot. For more significant repairs, they will have you come over to estimate or send out their contractors for more extensive work.
You may not always need repairs and maintenance, though, if your company works with quality tenants who take care of their homes. Tenants should notify management companies immediately when something is wrong so that they can be taken care of.
Most property management companies will come twice a year to do routine inspections of your properties. They want to ensure that everything is working as expected, but they also check for broken windows, damaged doors/locks, and other safety hazards.
They are supposed to look out for the best interest of both you and your tenant, so they must do a good job of this. If they are found to be negligent, you may want to consider switching companies or terminating your contract with them altogether.
Effective Communication Is Key To Successful Property Management
The best companies will communicate with you often and clearly about your properties, which is an essential part of any successful business relationship. They should provide weekly reports on all activities, including rent collection, tenant screening results, maintenance issues, etc. You want a company that not only keeps you in the loop but also responds quickly to any concerns or even suggestions that you may have.
You can always ask your property management company how they handle rent collection, tenant screening, and maintenance issues because everyone is different. It all depends on what kind of business relationship you want with them, so make sure to get input from other landlords in your area to find out what they prefer.
There are many things to consider before hiring a property management company. Make sure that you research local companies and interview those who seem like they would be right for the job. If so, find out more about their marketing strategies and what channels they will use to keep tenants updated on any necessary repairs or rent changes.