Owning a rental property is a great way to earn an income with little work. However, you must have enough to purchase the property, keep it in good condition, find tenants to rent the units, and hire a reputable property management company. You can always manage your own properties, but it's a lot of work and time-consuming, so most prefer to transfer that responsibility to a property management company.
To choose the best property management company, you should consider the following:
What's Their Fee?
Each property management company has its own system for charging its clients. Figure out what each one charges, so you can choose one that doesn't overcharge for their services. Some will charge an overall price for each property based on the number of units, while others will charge for each individual service they provide.
What's Their Policy on Late Rent?
One of the most important things for a property management company to do for you is keep the flow of revenue coming in. That means they must be persistent to ensure every one of your tenants pays their rent on time each month. You want to choose a property management company with a good reputation for collecting rent from tenants and not allowing them to be consistently late so you don't lose money.
How Big Is the Company?
Property management companies come in many different sizes, and you want to choose one that makes the most sense for your property. If you only have one small property with one or two units, you might want to select a smaller management company so you have a more personal relationship with them and can trust them more. However, if you rent out lots of different properties, you might need a larger management company that can keep up with your tenants' needs.
How Close Are They to Your Property?
Location is a vital factor to consider when you're choosing a property management company. You want them to be as close to your properties as possible, so they can get there quickly if needed. If one of your tenants has a leak in their ceiling, time is of the essence, and you want to be sure someone can get there quickly.
What Do They Cover?
An essential quality of a property management company is the services they cover. Find out precisely what's included in the fees so you don't expect the management company to cover things they don't handle.