When you decide to take on a property, whether it be a commercial family property or a single-family property, most people like to have a property management company to overlook their property(s). By having a company overlook all of the day-to-day situations that will arise on property with tenants, you have less to worry about overall. But how do you find a good property manager? Well, let’s look at some tips that I have gathered to help make it a little easier.
Your first step is to ask around. I know it sounds silly, but when it comes to things like this you are going to want to know other people’s first-hand experiences with different companies. Looking at reviews online, while helpful, can be misleading at times. Some people make up things and post negative reviews just because, while the people who have the best experiences don’t always post their experiences either. So, word of mouth is one of the best things to do in situations like this. It allows you to ask questions and learn people’s real-life experiences with the companies that they have worked with. You can ask about companies that they stopped working with, and why they stopped working with them. Ask about the strength and weaknesses and what made them choose the company that they ultimately went with. Basically, ask the questions. No matter how silly that you think they may be, ask the questions.
After you ask the questions, do the research. Don’t just take whatever someone told you with blind faith, that would be bad business on your end. Get on the computer and look up all the information that you were given. Cross your t’s and dot you I’s. Once you do the research, if you have any other questions, you email them to the company(s) that you are looking at. If they can’t answer your questions, or wont answer them, then you need to take that into consideration too.
Visiting their properties is also a good way to verify what they are saying. You can see if what they are advertising is what they are actually doing on the property. You can see if the property is well kept, if it is being neglected, how friendly the people who work in the management office are. You can see if the residents are happy. When talking to the residents, you can ask them if there are any concerns they have. If work orders get handled in a timely manner, if the buildings are quiet, how they overall like it.
After these three things, and you narrow your options down, you want to make sure that all the companies/managers have their licenses and certifications in order. Most states require management companies and their managers to have a real estate broker’s license or a property management license in order to show vacant apartments. You can verify these certifications on different online real estate groups.
Finally, when you make your decision and you go to sign the contract, make sure that you understand everything that you are signing. Make sure that that you include everything that you want the company/manager to do throughout the terms of your contract. Their role can be very broad or very narrow, so make sure that you include everything that you want to be done in the contract.
But overall, you need to follow your gut and your instincts.
