Deciding to work with a professional property management company is a good choice because it means your property will be protected by experts and the return on your investment will likely be higher. Choosing the right management company doesn’t have to be difficult, as long as you know what you’re looking for. These are six questions you should ask before you sign a management contract with any property manager in Tampa.
Fees and Costs
Most landlords and investors want to know what management is going to cost. Remember that it’s more important to measure the services you’re getting in exchange for the costs. The cheapest company isn’t always going to deliver the most help. Property management companies will charge you two specific fees; a leasing fee and a management fee. The leasing fee covers tenant placement and the management fee covers the day to day operations of running your property. Find out if there are other fees built into their service plan. You don’t want to be surprised by any hidden costs.
One of the most important things your property manager will do is to find you well qualified tenants. Ask what they look for in a tenant. At the minimum, they should be checking credit information, criminal information and details on the tenants’ past rental histories. You also want your manager to run a criminal background check and a check for prior evictions.
Ask about vacancy rates. Good property managers will be able to rent your home out quickly. If you talk to a manager who doesn’t know where their vacancy rate falls or they aren’t able to prove to you that they rent properties right away to good tenants, keep looking. Vacancy is one of the largest expenses property owners face. You want a manager who will help minimize that risk.
Another important statistic to ask about is renewal rates. You want to work with a property management company that’s effective at keeping tenants in place. Long term tenants save you money, so make sure you work with a manager who establishes good relationship with tenants and remains attentive to their needs.
Communication and Contact
Ask a property management company who your point of contact will be. You’ll need to know who to reach out to if there’s a question or a problem, and you don’t want to have messages go unanswered. Get an understanding of how well the property managers communicate.
You’ll need to know how you’re getting paid every moth. Find out when you can expect rent to be sent to you, and whether you are paid electronically. With all the great property management software available, sending and waiting for paper checks is no longer necessary.
These are six areas you absolutely want to cover when you’re interviewing property managers. If you have any questions, please contact us at Rent It Network.