If you are a property owner, the right property management service is crucial to the success of your business. Before you hire the services of a property management company, you need to know what you want, what you can do yourself and what you cannot do. In creating the right package for you, a number of factors come into play.
How much time do you have? Property management is a demanding business. You will be on call 24/7 to deal with emergencies. You'll have to be on site to show the property to potential tenants, among many other duties.
How much will it cost you to hire a property management company? And how much would it cost you if you did the job yourself?
Location of Properties
Where are your properties located in relation to where you live? If they are far, you will meet some serious challenges.
You may have difficulty accessing your property, attending to maintenance issues in a timely manner, showing the property to potential tenants and accessing vendors (plumbers and electricians) in the locality. If this is your situation, choose a package that will include maintenance.
Compliance with the Law
How familiar are you with your state's tenancy laws? If you are not, you are better off getting a package that includes compliance. Here are a few property maintenance services that you could consider in creating your package.
Here, the property management company is responsible for marketing, lease negotiation, and screening of tenants, leaving the day to day operations such as rent collection, maintenance, eviction, and accounting to the owner.
Under this arrangement, the property management company will handle repair and maintenance issues, conduct periodic inspections of the property and facilitate inspection by state or city authorities.
This has to do with legal issues. The property management company ensures adherence to tax laws, tenancy laws, and security deposit laws, among others.
These include rent collection, payment of property taxes and vendors, managing bank accounts, and generating monthly and annual statements.
Full Service Property Management
Here, the property management company offers all of the above services and more, freeing you to engage in other activities.
Managing your rental property is not easy to do on your own. Unless you have full knowledge of the business, it is advisable to create a package that allows the property management company to handle what you are not competent to handle. Alternatively, if you find the cost agreeable, let the company handle everything.