May 1, 2023 | Sexton Real Estate Group
Investing in real estate is a great way to build long-term wealth, but managing rental properties can be a challenging task. As a property owner, you may find yourself overwhelmed with tasks such as tenant screening, rent collection, maintenance, and repairs. This is where a property management company comes in.
Hiring a property management company can take the burden off your shoulders and ensure that your investment is managed properly. However, not all property management companies are created equal. It’s important to choose the right company that meets your specific needs and goals. In this article, we’ll discuss the 7 dos and 7 don’ts of choosing a property management company.
The Dos of Choosing a Property Management Company
1. Do Your Research
Before you hire a property management company, do your research. Look for companies that specialize in managing properties similar to yours. Read reviews from other property owners, and check their credentials, licenses, and certifications. You can also ask for referrals from other real estate professionals or local landlord associations.
2. Do Ask About Their Experience
Ask the property management company about their experience managing rental properties. How long have they been in business? What types of properties have they managed? What is their track record like? Do they have experience dealing with difficult tenants or managing properties in your specific geographic area? Make sure they have the expertise to manage your property properly.
3. Do Ask About Their Services
Different property management companies offer different services. Make sure you ask about the specific services they offer, such as tenant screening, rent collection, maintenance, repairs, and accounting. Do they provide regular inspections of the property? Do they have a 24/7 emergency line? Will they handle eviction proceedings if necessary? Make sure the company you choose offers the services you need.
4. Do Ask About Their Fees
Property management companies charge different fees for their services. Some companies charge a flat rate, while others charge a percentage of the monthly rent. Make sure you understand their fee structure and ask about any additional fees, such as advertising or maintenance fees. Compare fees from different companies to make sure you’re getting a fair price.
5. Do Ask About Their Communication
Communication is key when it comes to managing rental properties. Make sure you ask the property management company how they will communicate with you. Will they provide regular updates on the status of your property? Will they notify you immediately if there are any issues or emergencies? Make sure they have a clear communication plan in place.
6. Do Ask About Their Technology
Technology can make managing rental properties more efficient and effective. Ask the property management company about the technology they use to manage properties. Do they use property management software? Can tenants pay rent online? Do they use electronic maintenance requests? Make sure they are up to date with the latest technology.
7. Do Ask for References
Before you hire a property management company, ask for references from other property owners. Contact these references and ask about their experience with the company. Did they provide high-quality service? Were they responsive to their needs? Would they recommend the company to others? References can provide valuable insight into the company’s reputation and performance.
Don’ts of Choosing a Property Management Company
1. Don’t Choose Based on Price Alone
While price is important, it shouldn’t be the only factor you consider when choosing a property management company. A low price may mean that the company offers fewer services or has less experience. Make sure you consider other factors, such as their experience, services, and reputation.
2. Don’t Choose a Company Without Checking Their Credentials
Before you hire a property management company, make sure you check their credentials, licenses, and certifications. Unlicensed companies may not have the necessary skills and knowledge to manage your property properly.
3. Don’t Choose a Company without Reading the Contract
Before signing a contract with a property management company, make sure you read it thoroughly. The contract should outline the services they will provide, their fees, and any other important terms and conditions. Make sure you understand the contract and ask questions if anything is unclear.
4. Don’t Choose a Company that Doesn’t Have Insurance
Make sure the property management company has insurance to protect your property and their employees. Without insurance, you could be held liable for any damages or injuries that occur on your property.
5. Don’t Choose a Company that Doesn’t Screen Tenants
Tenant screening is an important part of managing rental properties. Make sure the property management company has a thorough screening process in place to ensure that you get reliable tenants who pay rent on time and take care of your property.
6. Don’t Choose a Company that Doesn’t Have a Plan for Maintenance and Repairs
Maintenance and repairs are a part of managing rental properties. Make sure the property management company has a plan in place for regular maintenance and repairs. This will help prevent small issues from becoming big problems and keep your property in good condition.
7. Don’t Choose a Company that Doesn’t Communicate Effectively
Communication is key to successful property management. Make sure the property management company has a clear communication plan in place and is responsive to your needs. You should be able to reach them easily and get regular updates on the status of your property.
Our Final Thoughts
In conclusion, choosing the right property management company is crucial for the success of your real estate investment. By following the 7 dos and 7 don’ts outlined in this article, you can find a company that meets your specific needs and goals. Do your research, ask the right questions, and make an informed decision. With the right property management company, you can enjoy the benefits of real estate investing without the stress and hassle of managing rental properties on your own.
Are You Looking for an Amazing Property Management Resource in Northern California?
Welcome to the Sexton Group Real Estate | Property Management, Northern California’s premier property management company! Our boutique real estate company specializes in residential sales for San Francisco Bay Area properties. With three local offices strategically located in Berkeley, Oakland, and Lafayette, we are perfectly positioned to serve our clients in these vibrant communities.
What sets us apart from other property management companies is our deep understanding of the unique charm and character of each area we serve. In Berkeley, we embody the essence of the city’s eclectic and artistic culture. In Oakland, we honor the city’s rich history and diverse community. And in Lafayette, we embrace the family-oriented vibe and community-centric atmosphere.
At the Sexton Group, we pride ourselves on our team of amazing real estate agents. With over 25 years of combined experience in the industry, we have the expertise to help you buy or sell your dream home in Contra Costa or Alameda County. And with a relaxed, down-to-earth approach, we make the process enjoyable and stress-free.