Property management companies come in all forms and sizes, and the services they offer are quite varied. What works for other clients might not work for you. In order to make sure that the company is right for your needs, there are some questions you should ask them early on. You can make finding a property management company easier on yourself by asking the right questions about their properties.
Based on the kind of property you have, you should find a company with similar properties in their portfolio. For instance, you might have a single family home, and the company of your choice may have large apartment buildings in their portfolio. Instead, you should be looking for a company with a portfolio made mostly of single family homes.
How do they perform inspections?
A good property management company will have thorough inspections on-site when the tenant moves in and out. It might be best for them to do a video inspection to capture the entire property and to serve as proof in case of damages or missing items.
How do they perform maintenance?
Some of the companies have their own maintenance team. This means that the hourly rate or the costs of the repairs are set by the company. Other companies choose to work with certain vendors based on the maintenance needs that they have. Both solutions have their pros and cons.
Do they have in-house maintenance?
Advantages:
- Having professionals available at all times
- Direct communication between the company and the maintenance team
- The maintenance team is directly interested in maintaining the property
Disadvantages:
- Not working with professionals in a certain field
- The team is not motivated to finish the job on time
- If the team isn’t available, the tenants and owners will have to wait
Do they outsource maintenance?
Advantages:
- Since there is some competition, the costs may be lower
- In order to have a long-term relationship, the vendors are more likely to do a good job
- The majority of the vendors are professionals with the proper licenses
Disadvantages:
- Some of the property management companies add a surcharge to the contracts
- If the owner isn’t satisfied by the job, it might be difficult to get a hold of the vendor
What are their accounting procedures?
The majority of property management companies offer services regarding accounting procedures. Usually, the owners get a monthly statement regarding the incomes and expenses of the month, such as management fees, lawn care service, repair costs, lease renewal fees, advertising charges, and utility charges. This statement clearly shows the net amount and is mailed monthly to the owner.
Be sure to make finding a property management company easier on yourself by asking the right questions regarding all the above mentioned areas.
