When you first started as a rental property owner, you tried to handle most of your tasks and operational responsibilities on your own. But you soon learned how tall of an order it can be, especially if you’re trying to manage more than one property. And now, you’re considering a property management company partnership.
Before you start your online search or even reach out to potential property managers, you’ll want to make yourself a list of questions to ask and criteria to verify for each management company contender. And to help you create this roadmap to guide you, we’ll highlight all the critical details you’ll want to know before officially partnering with a property management company.
Verifying Credentials & Licensing
Before you choose to work with any vendor or partner, especially for your investment property, you’ll want to verify all company and individual credentials. This includes real estate licenses, proper certificates of insurance, and any association memberships that may be helpful.
Explore Any Specialized Experience within the Lehigh Valley
A general search of a property management company’s website will help you determine if the organization offers any niche specialty services or extras. Some property managers focus more on commercial properties, for example, while others are primarily residential managers. And because you might be interested in buying or selling properties, you’ll want to work with a company that understands the Lehigh Valley real estate market through a lens of portfolio management.
Discuss Precise Lists of Responsibilities
Don’t presume all property management companies handle the same duties and responsibilities. Take the time to review and inquire about a firm’s list of management services. These might include, but aren’t limited to:
Resident Prescreening
Property Maintenance Scheduling
Rent Collection
Eviction Processes
Vacancy Management
Budget Review
Property Marketing
Software Management
Vendor Management
Resident Communication
HOA-Related Support
Inquire About Added Value Services
Some property management companies will extend some added value services that may help you decide on the right property management partner. Ask about the firm’s ability to review property portfolios, annually or otherwise, to identify key areas of NOI improvement or expense reduction. And remember, don’t be hesitant to ask for what you want. Reputable property management companies will want to customize their offerings to meet your needs in a true partnership.
Ask for References & Verify Reviews
Just as you would do your due diligence with potential renters, you’ll want to verify references and reviews of any rental property management companies you consider. Ask how many clients the company has now and if there’s a possibility of you speaking with someone who uses their management services. Look online for reviews, too. There will always be a few disgruntled residents out there leaving unfavorable feedback. But if you find questionable reviews from other property owners, it might be a red flag.
Contracts, Fees & Guarantees
Before you officially commit to partnering with any property management company, take the time to review the agreement, fees, and guarantees. Understand the terms and ask questions about communication guidelines. Know what monthly fees to expect and what those fees do and do not include. Ask about any service guarantees or negotiated rates, as well. If it’s your first time reviewing an agreement, get a second opinion from your legal representative to avoid locking yourself into terms or restrictions that don’t make sense to your investment business.
Talk to Several Property Management Companies
You might feel good about the first property management service provider you find. But even if all the boxes are checked, and your gut says it’s a good deal, check around. Follow through on connecting with at least two other property management firms. You can then compare to ensure you’re aligning with the best-fit services for your needs and budget. And even if your second and third calls don’t impress you as much as your first prospect did, you’ll at least be more confident you’re making the right decision.
Before signing on with anyone, check out Axel Property Management. Our expertise in managing portfolios, operational tasks, and the Lehigh Valley investment sector is impressive. And you’ll find, especially if you’ve talked to other providers, we raise the bar on everything you can expect from a true partner. And we’ll raise your NOI, too.
