How To Evaluate Property Management Services
Property management services are a dime a dozen in the United States and they all make the same lofty promises in a bid to get you to sign a contract with them. Virtually every property management services company has the ability to comfortably deal with a handful of properties but what happens when you ask them to control 15-20 different properties in a number of locations?
The first tip when evaluating property management services is not to do so when you are already signed with the company. Finding out that the organization can’t handle your affairs competently when you’re at a level of peak expansion is nothing short of a disaster. Talk to your contacts in the real estate agency and find out who is worth hiring before trying the best two or three companies on trial.
Beware Undercutting And Micro Management
When it comes to property management services fees, you need to compare what you find to the industry standard. Don’t go for the cheapest company because you are placing one of your biggest assets in their hands. For all you know, a company may charge lower fees than the competition because they are fully aware of their limitations.
Companies that are looking to gain an advantage on their rivals by cutting their prices are also leaving themselves open to trouble. They only have slim margins to deal with and this will involve cutting corners in a bid to turn a profit. Companies that are substantially cheaper than their competitors tend to take as much property as they can without knowing if their management team can actually handle the workload. It is also a sure sign that they offer no advantages except for price.
The Screening Process
Another important thing to consider when evaluating property management services is the way in which the company screens potential tenants. How thorough are they when prospective clients come looking at one of their client’s properties? High quality companies will have a set procedure that involves checking a potential tenant’s credit reports, seeing if a tenant appears on civil court records, verifying a tenant’s ability to pay on time with their current landlord, asking for references and checking on employment and income.
Their Contact List
Even properties that have excellent tenants need maintenance. This is another method of evaluating property management services. The best companies will have long standing working relationships with contractors they trust. There should be a smooth operation in place whereby the contractor is contacted by the property management company and proceeds to quickly and effectively fix the problem to the satisfaction of all parties. Companies who manage this process seamlessly are definitely ones to consider. It shows that they have experience and know how to forge successful relationships with clients as well as being efficient.
You cannot take chances when it comes to placing your prized assets in the hands of property management services. They need to have experience, hundreds of previous clients, an ability to weed out prospective tenants that could potentially cause trouble and be in close contact with high quality contractors who can solve any issues that arise with the house.
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