Whether you own multiple apartment buildings or just a few rental homes, managing your investment properties can become difficult. If you have another business or career, managing your rental properties can be physically, emotionally, and financially overwhelming. Thankfully, help is available if you want your rental properties to be a less stressful and more profitable investment. Because they take the stress off of you, as the owner, property management companies can be a great option to consider. This guide will give you a few questions to ask when hiring a property management professional for your rental properties.
Are the Property Managers Licensed?
Before hiring a company, ask if the managers have any specific licenses and certifications. While not required in every state, a licensed property manager not only has the skills but also the training required to perform their duties in the most effective manner possible.
It is important to note that most states do require that property managers hold a real estate license. This allows the manager to properly list your rental property on the multiple listing service, or MLS.
Properties listed on the MLS are viewed by more people, increasing the number of potential renters that will see your property. This will help your property manager rent it easier and faster.
How Many Properties Do You Manage Now?
Although it is perfectly acceptable for management companies to handle multiple properties at one time with ease, you do not want them to be overwhelmed by adding on your property needs. Before committing to a property manager, you should ask how many properties they are currently managing.
As long as they have the experience and confidence to manage multiple properties, there should not be any issue for them to take on your property as additional work.
How Do You Screen Potential Renters?
You may have your own way of screening potential renters for your property, but most management companies will utilize an entirely different screening method. The most experienced management companies will know which red flags could be potential concerns, helping avoid late/missed rent payments and even property damage.
So you will know what to expect, ask the company how they go about screening potential renters.
There should be an application process in place for potential renters. This application will ask for basic personal information, but it should also ask the potential tenant about their income and employment. A credit check is also wise. Good credit scores indicate the individual has made payments on time, which means they will most likely pay their rent on time, as well.
As part of the application process, potential renters should provide references from past landlords. If they are unable to provide references, they may not have a good rental history, meaning they will not be a good tenant to work with. The management company should also contact these references to confirm their good rental history.
The key is to choose a management company that will take the screening process seriously.
How Is Rent Collected?
Without the rent, you are basically allowing people to stay in your investment for free. Making sure the property management company collects the rent in a timely and effective manner is key.
Determine whether the company requires that rent is paid through the mail or via electronic deposits. Many companies also collect rent in person. It is helpful to know how the rent is collected and when it is required to be collected so you can budget other elements of your investment properly.
The benefits of hiring a property management company, such as MacPherson's Property Management, should be easy to see, but you may not know how to choose an effective one. By asking these questions, you will be able to determine if a specific management company is right for your property and needs.