The benefits of owning a rental property are many, especially when you consider the potential for passive cash flow, long-term property value increases, and capital gains if or when you sell them. But when you own a rental property, you will need to consider the management of your properties, how you will do it yourself, or if you will hire a professional manager to take over this area of your rentals. Here are some tips and recommendations to help you choose the right property management company for your residential rental.
Ask About Their Experience
One of the first questions you will want to ask a property manager is about their experience with handling properties. Find out what type of rentals they usually manage, whether it is commercial or residential, and if the residential includes single family homes, multi-units, or apartment complexes. This will help you understand if they are able to manage all types of properties or if they specialize in the type of property you own and need management services for.
Find out what their vacancy rate is currently on all their management properties and ask them if this is the same, higher, or lower, than the current area's vacancy rate. A property manager should monitor and track these statistics, especially within their own managed properties and can provide the information to you. The lower their vacancy rate is, the better you know they are with filling vacancies and keeping tenants.
Evaluate Their Work
After you have asked the type of properties and experience they have managed and are currently handling, you will want to check out some of their current rental properties. This will provide you an opportunity to see just how well they manage and take care of their existing rentals, which can give you some insight into how well they will handle and manage your rentals.
Visit a couple properties to view the landscaping and exterior of the properties including the common areas. Look to see if there is trash on the grounds and around the dumpster areas, if there is a lot of pet waste around on the grass, or if the units have screens torn, falling out, or missing. These small details can give you a glimpse into how tight or how lax the property manager is on keeping up with everyday cleaning, maintenance, and property upkeep. If they maintain the properties in great condition, they will do the same to yours.