When you decide to rent out a unit or even a multi-tenant unit, you are making a business decision. Property rentals require upkeep, compliance with a variety of laws, and ultimately provide a return on a real estate investment. Accordingly, you should focus on your rental business. You should concentrate on the financial aspects of your rental and the acquisition or retention of a rental. The right property management company can help with the rest. When you choose a property management company as a partner, you can focus on the business of your rental, while they focus on the maintenance and upkeep of your rental unit, or units. Before choosing someone to partner with you, make certain that you get acquainted with the know-how needed to pick a good company versus a sub-par company.
It’s always safe to get a business reference from other business people. Typically, individuals who earn a living or have a side business that involves property rentals count on positive reputations. If another business person refers a particular property management company to you, it’s likely that company has performed satisfactorily for the property owner. However, if you don’t learn about a property management company from a contemporary, then you should seek client references from any property management company that you consider engaging in business as a property partner.
You are in the rental business to earn money, not lose it, and so while a good property management company will certainly help you in that regard, you should carefully question a prospective company concerning their fee structure. You want the property management company that you hire to have a vested interest in making sure that your property is always rented out. So, you should choose a company that only takes a commission from actual rent earned, and not a fee on properties that sit vacant without tenants. The percentage that a company will make per unit varies by region, but typically the cost falls in the range of five to ten percent of the actual collected rent.
Who handles repairs?
An important question and one that a lot of property owners forget to ask is about who handles needed repairs. Some property management companies handle everything from snow removal to cutting grass, to fixing anything that needs to get corrected. Other property management companies bring in experts, and they check with you before doing any major work. Your preference will dictate the type of company you want to hire, but it’s good to know up front how repairs will get handled. Many quality property management companies know that they can’t do it all, and usually have working relationships with qualified experts.
Finally, before you partner with a property management company, you should know how they screen potential tenants. A quality property management company is familiar with the local landlord tenant laws. Additionally, most good property management companies check for felonies in a tenant’s background, as well as their credit score. One way to make sure that you earn money on your rental property is to ensure that you lease to responsible tenants.
The right company for you
A property management company can help to maximize your occupancy and minimize your risk. Be thorough and make sure that you pick the right company to partner with you.
This guest post contribution is courtesy of Rooftop Real Estate Management, a property management company Boise, ID property owners have come to trust for quality service.
January 10, 2017