How To Choose The Right Property Management Company


Posted January 22, 2022 by MyDreamRealty

When a person owns rental property, there are a number of things to take into consideration before hiring a property management company.

 
When a person owns rental property, there are a number of things to take into consideration before hiring a property management company. It is important to choose carefully, as the costs and fees associated with hiring the wrong company can be very high.
There are certain key questions that need to be asked when choosing a property management company. These include:
Is this all-inclusive?
By choosing an all-inclusive package, you will save yourself from additional expenses in various areas of your properties' upkeep. For instance, parking lot lighting or grounds maintenance may not even occur to you until something goes wrong that your tenants complain about. An all-inclusive service-oriented business can provide you with a 'one-stop-shop' for the complete management of your rental properties.
Are they licensed and insured?
All property management companies should be licensed in the state they are doing business in. Ask to see a copy of the license, and make sure that it is current. The company should also have liability insurance in case any accidents occur on the property.
Do they have experience with my type of property?
Some property management companies specialize in one type of property, such as apartments or single-family homes. Others manage a variety of properties. Make sure that the company you choose has experience managing your type of property. This will ensure that they know how to handle repairs, leases, and other important tasks related to owning and managing rental units.
What services do they offer?
Property management services can include financial, administrative, and maintenance tasks. Many property owners choose to contract out the financial and administrative areas of their business to a company that specializes in those aspects. They then handle maintenance themselves or hire a contractor. Ask the property management company what their scope of responsibility is and make an informed decision on whether you want to use them as your 'one-stop-shop' for all aspects of homeownership, or if you would like them to focus on either the financial or upkeep part.
"It's important to ask the right questions when choosing a property management company, as the costs and fees associated with hiring the wrong company can be very high," Adds Tal Kenig of My Dream Realty [https://www.mydreamrealtyvancouver.com/]. "You don't want to find yourself in a situation where you're not getting the services you need or are paying too much for services you don't."
Does this property management company offer any additional amenities?
Some companies may also provide maid service, landscaping, snow removal, gourmet meals, etc. These too will cost more money, but they can be very valuable if you do not have the time or money to provide them yourself.
Is there a contract?
Any business that you enter into should have a written contract. Make sure that it is in easy-to-understand language, and be clear on how much notice you need to give if you choose to end the agreement with the company. Ask for a copy of the contract before signing anything. This will ensure that nothing has been added or left out.
While price shouldn't be your only consideration when choosing a property management company, it can certainly play an important role in your decision. If one company is significantly more expensive than another but provides similar services, you may want to weigh whether their efficiency warrants such a high cost for your budgeting purposes. Also, do not forget to take into consideration the fees that you will have to pay for each service if they are managed separately from one another.
Final Thoughts
Choosing the right property management company can be a daunting task, but it's important to do your research and ask the right questions in order to make an informed decision. Property management companies can provide valuable services such as financial management, upkeep of your property, and administrative assistance. Costs and fees associated with hiring a company can be high, so it's important to make sure that you are getting what you expect in terms of services. A written contract is a must-have when entering into any business agreement. As a property owner, it is important to weigh all of your options before making a decision on which company will best suit your needs.
Please remember that this is only general information, not legal advice. For specific questions or concerns, please contact your local law office.
Helpful Resource: 5 Expert Tips on How to Choose an Excellent Property Manager [Roofstock]
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Issued By My Dream Realty
Phone (778) 317-0752
Business Address #1112 - 1030 W Georgia St. Vancouver
BC, V6E 2Y3
Country Canada
Categories Property , Real Estate
Tags property , property management , real estate , realtor
Last Updated January 22, 2022