About 20% of Americans earn passive income from dividends, investments, or rental properties. Do you want to be one of them? While renting out a property isn’t always passive income, it can be close to it with a good property management company.
Whether you’re renting out your second home or you’re investing in a whole new property, an experienced property manager can make your life easier. But how do you find a good one?
There are plenty of Maryland property management companies, but not all of them will suit your specific needs. We’re here to help you find one that will.
Read on to learn our top tips for finding your ideal property management company and making the most of your investment.
1. Research and Compare
Your first task, when you’re looking for a local property management company is always going to be research. Luckily, that’s what you’re doing right now. You’re already on the right track.
Researching and comparing property management companies is essential for finding the right fit. It’s a good idea to look up “real estate management options near me” to get a list of viable property management companies to choose from. You can also ask friends and peers who are involved in real estate if they have any recommendations (more on that later).
Gather a list of potential companies, then compare their services, fees, and track records. In addition to online research, consider attending local real estate events or seeking recommendations from local real estate associations. Use your resources!
2. Assess Experience and Expertise
Assess the company’s experience by asking how long they have been in business and what types of properties they specialize in. Many businesses will proudly list how long they’ve been active to show off their success and expertise. If not, there’s nothing wrong with asking.
Make sure you’re looking for specific expertise. For instance, a company with a strong track record in managing single-family homes or other residential properties may not be the best choice for a commercial property. Consider their portfolio and ask for references from property owners with similar needs.
3. Check Customer Reviews and References
Reviews and references from previous customers (and even tenants) can benefit you when you’re looking for a new property management company.
Online reviews can provide insights into a property management company’s reputation, but remember that online feedback can be subjective. For a more balanced perspective, request references from the company and contact these property owners directly if you can.
Ask about their experiences, including the company’s responsiveness, communication, and overall performance.
You can find reviews online of the properties that the company manages if they’re apartment buildings. This will give you a tenant’s perspective.
You can also ask people you know who have used these services. People in your network are often more reliable than strangers on the internet.
4. Check Services Offered
What are you looking for in a property manager? What tasks would you like them to take off of your metaphorical plate?
Define your specific needs and expectations before selecting a property management company. While all property management companies aim to take some of the work out of the hands of property investors, they don’t go about it in the same way.
Consider services such as advertising and marketing, tenant screening, rent collection, maintenance, and legal compliance. Make sure the company offers the full range of services you need or want.
5. Analyze Their Fee Structure
Property management can save you money and make you money, but it isn’t free. Property owners will be paying in some way, and you need to know whether or not that works for you.
Analyze each company’s fee structure to understand the costs associated with property management. Management fees, leasing fees, and any additional charges should be transparent. Be aware of any hidden costs and decide whether the fees align with the quality of services.
If the fees are unclear, don’t be afraid to ask questions!
6. Ask About Tenant Retention and Acquisition Strategies
Ask about the company’s approach to tenant relations and retention. Vacancies are terrible for your property investment, so your property management company should have a plan regarding tenant acquisition and retention.
A good property management company should have strategies to encourage long-term tenant relationships. This will help you reduce tenant turnover and minimize your marketing and advertising costs.
Ask how they handle lease renewals, tenant concerns, and disputes if they come up.
7. Ask About Maintenance and Repairs
The company’s maintenance and repair procedures are crucial for maintaining the condition of your investment. As a matter of fact, professional maintenance is one of the top reasons people hire property managers.
Learn how each company handles routine maintenance and emergency repairs. Remember that routine maintenance is one of the best things you can do to prolong the life of your property investment, so take it seriously!
Ask about their network of reliable contractors or if they have an in-house maintenance professional (or team) that they prefer to use. Quick and cost-effective maintenance can protect your investment.
8. Consider Communication
Effective communication is necessary for a property management company.
A good property management company should have clear communication channels for property owners and tenants alike. Strong communication will improve tenant relations and ensure that you’re always on the same page as your property manager regarding any issues or decisions involving the property.
Ask about their response times, how they handle inquiries, and their methods for resolving issues.
Find the Right Property Management Company for You
If you’re a rental property owner in Rockville, the right property management company can make your life easier. These tips can help you find the perfect company for the job.
You deserve to sit back, relax, and have peace of mind while an experienced property manager helps you with your investment.
Brett McCurdy and the team at Realty Investments Corporation can help. Between finding the perfect new home and managing rental properties, we do it all. We want to help you.
Ready to connect? Schedule a call with us so we can discuss your property management needs today.