Landlords – 5 Questions You Should Ask Any Potential Property Management Company

Anyone can become a real estate investor but not everyone wants to be landlord. Some people do not have the time or the desire to deal with late paying tenants, leaking toilets and unruly tenants. For these reason real estate investors hire a profession property management company to mange their rental properties. Successful investors realize that the best use of their time is finding their next great deal instead of dealing with the mundane tasks necessary involved with managing rental properties. If you are considering hiring a professional property management company, here are 5 questions you should ask them.

1. This is the most important question and it is how much is it going to cost? The fees charged by property management companies vary. When comparing companies make sure you understand what is included in the monthly fee that is charged. Also be sure you understand the cost for items not included in the monthly fees as these may add up quickly. Additional fees can include the cost of landscaping, evictions, showing vacant properties, advertising vacant units, and managing new tenant move-ins.

2. Ask the company what type of properties do they manage and in what part of town are these properties located. If the company mainly manages large apartment complexes and you have a single family house, they may not be the best fit for you. Likewise if your property is on the south side of town and all of the properties they manage are on the north side, they may give your property less attention because they do not want to make the drive. It is best to find companies that manage properties like yours and in the same area as your property’s location.

3. Will the property management company dedicate an account manager to your property or will it be handled by anyone available in the office? It is much better to have a single contact person who will become familiar with your property rather than talking to anyone who happens to answer the phone. If you have a dedicated account manager, make sure they have experience as a property manager and they have worked with property types similar to yours.

4. The property management company will be responsible for collecting rents and paying for repairs and other expenses. Make sure you understand when they will be dispersing monies directly to you. heating and cooling downingtown pa . Some companies will hold rents for a month before paying them out to the owner while others will disburse payment on the 15th of each month. bathroom remodeling Horsham Pa . computer technician . Ask if they will pay for expenses themselves and bill you or will they subtract them from the collected rents before payment to you.

5. The biggest expense for any landlord is having vacant units. You need to know how the property management company will be advertising your vacant unit. Do they charge a fee for showing vacant units? Will they charge a fee for doing new tenant move-ins? When they advertise do they advertise just your property or do they list your property with a dozen other properties. Do they get incentives for showing your competitor’s property over yours? You want to understand what it would cost to find a new tenant and the timeframe it takes for them to fill a vacant unit. Remember time is money in this business.

Before deciding on a property management company, there will be other questions you will ask but these are the most important questions to ask all potential companies. Make sure you take the time to ask everything so you will be able to select the best company. Once you have a professional property management company then you can focus on finding your next great deal

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