Choose The Right Property Management Company
Investing in rental properties can be a great opportunity for savvy investors, but being a landlord can be quite the challenge. Many people find this a welcome challenge, but not everyone is cut out from managing tenants. It may be the perfect solution to hire a property manager if you fall into the latter category.
In addition to that, an experienced manager can ensure the tenants are happy, the cash flow is taken care of appropriately, and the properties has in great condition. However, a bad property manager can cause owners to lose time and money along the way. As well as not handling regular inspections and tenants with rental arrears, the wrong manager can lead to low retention resulting from low retention rates.
If you are looking for a property management company, it can be difficult to find the right one. Property management companies might be a great help! There are many different types of companies out there and they all have different services that they offer. Some of them specialize in managing rental properties, some manage commercial or residential properties, and some handle both! It is important to do your research before hiring a property management company because it will impact how well your home is taken care of.
West Point Property Management Inc. provides exceptional property management services. Take a look at our property management services for more information. To see if we are the right fit for your property needs, please also look at our reviews!
Have any questions about WestPoint Property Management services? Read our FAQ section.
How Does a Property Manager Work?
Understanding a property manager’s role and responsibilities is important before choosing one. Individuals or companies who take over daily rental operations for a fee are known as property managers. Consequently, they handle landlord responsibilities when owners cannot or do not want to deal with them. This includes taking care of the following:
- Marketing that Targets Specific Audiences
- Screening of Applicants
- Lawful Leasing Documents
- Inspections of Properties
- Rental Collection
- Basic Accounting and Reporting
- Coordination of Maintenance
- Communications with Tenants
- Legal Compliance and Fair Housing
10 Tips on Choosing the Right Property Manager
Your investment can be taken to the next level when you hire the best property manager. While rental management is a complicated undertaking that involves legal matters, dealing with tenants, and safeguarding the properties, it is also vital to safeguard legal and financial interests. Property management firms continue to sprout up everywhere because rentals are a booming industry. However, not all rental managers are created equal. Check out the following tips to find the right property manager.
1. Make Sure To Do Your Research Before Selecting a Property Manager
In the modern age, owners in need of professional property management have access to a vast amount of information. Therefore, a simple Google search is the best place to start. It is a great way to narrow down prospective property management companies and focus on those with the best chances of working for you. Once you have a shortlist, you should carefully check each company’s website for the following information:
- Services provided (tenant screenings, rent collection, etc.)
- Fee Schedule, Management Fees, and Ala Carte Services/Fees
- Information About the Staff and Leadership
- Tenants and Owners Special Features
- Information About Contact
- Testimonials from Clients
- Check out the Tenant Reviews
2. Invest in Local Expertise
To manage a property effectively, you need to understand the local market. Understanding the local market extends beyond how prices are determined. A good property manager should have experience in the following areas:
- Regulations and Licensing – Renting properties may be governed by specific laws in each jurisdiction. This includes things like rental licensing, inspections, and lead certifications.
- Demographics – Knowing your tenant pool is crucial to filling vacancies efficiently. Does the neighborhood attract students, for instance? Does the property appeal to families? Therefore, managers can target their marketing efforts for maximum exposure by knowing who is searching for the area.
- Relationships with Vendors – Any rental property will eventually require maintenance or repairs. Despite this fact, it is important to partner with a vendor manager who has a track record of working with vendors. This will ensure your properties receives the attention it needs promptly.
3. Organization and Technology Should be Prioritized
Keeping records and communicating with tenants are important aspects of managing rental property. The property manager you choose must be equipped with the technology and processes necessary to handle the tremendous amount of administrative work. A good property manager is organized, efficient, and handles records as little as possible on paper.
Traditional paper copies are less secure and less accurate than electronic copies. Owners benefit tremendously from a company that stays up to date with technology.
4. Conduct Multiple Interviews with Candidates
Asking some questions is just as important as reviewing their website. You should gather as much information as possible when looking for the best property manager. Finding the best property manager is the key to making sure your business is well-managed. Consider contacting the companies you are considering as contenders and asking them some of the questions below.
- Since when have you been in business?
- Do you have access to key documents such as the Property Management Agreement and the lease?
- Do you know how many employees the company has?
- How much does the monthly management fee include?
- How is the management fee calculated? Is it based on rent collected or rent due?
- Each manager typically oversees how many properties at a time?
- What are the basic requirements and screening processes for applicants?
- What is your method for inspecting properties?
- How do you handle the return of security deposits?
- Can tenants and owners access your online portal?
- Is there a monthly financial report and a yearly financial report?
Having asked a few different property managers these kinds of questions, you can better understand which candidate would be a good fit for your properties.
However, you should also evaluate their responsiveness to your inquiries. You will not receive the best service if they don’t respond to you as a potential client.
5. Providing Very Specific Questions to Test Candidates
Property managers should be flexible and experienced enough to handle a wide range of situations. To determine their skill level, you should ask them specific questions. Among these questions might be –
- How to handle an after-hours emergency.
- Marketing strategies to reduce vacancies
- What they would do if the properties was damaged suddenly or severely
- When a tenant must be evicted, what should be done
6. Obtain Referrals from Other Investors
There are times when friends and coworkers refer to the best property managers. So, have a conversation with those you know who work in real estate or property management to see if they can recommend someone who might be able to help you. It is still very important to hear what people have to say about quality management companies. A company’s reputation is spread by word of mouth among industry professionals if it has a poor reputation. Be sure the prospective property manager has a license and no complaints against them by checking the state’s Real Estate Commission and the Better Business Bureau as well as referrals.
7. Review Local Advertisements
Local advertisements are used by many property managers to advertise vacant properties. Look at newspapers, online classifieds, and sites like Craigslist to find samples of rental ads. Furthermore, the majority of reputable companies maintain a website that also lists available properties, so it is a great way to see the quality of their advertisements. To maximize exposure, the best rental ads are posted on a variety of sites, and they include:
- Dynamic Unit Descriptions – Descriptions of units should accurately describe the unit, yet be detailed enough to catch the reader’s attention. If the content is grammatically incorrect or exaggerated, it should raise a red flag.
- Photographs of Professional Quality – A picture is worth a thousand words, so grabbing the interest of potential tenants is essential as they scroll through listings. A great picture makes viewers want to learn more about a listing.
- Offering Virtual Tours – The COVID-19 pandemic made virtual tours very popular, but the benefits go well beyond lockdown restrictions. Online virtual tours allow potential buyers to see the property’s full potential at any time and from anywhere.
8. Make Sure the Track Record is Proven
Owners lose money in lost profits and lost opportunities due to vacant units. When looking for a property management firm, make sure that they have a proven track record. It is common practice for owners to take into account the average time it takes for a company to fill a unit. Having a tenancy filled quickly, however, is only advantageous if the tenant is stable and qualified. Therefore, ask the company about its eviction rate in addition to how fast they fill vacancies.
9. Entertain Only Licensed Property Managers
Real estate brokers and property managers are usually required to have licenses in most states. An approved course in property management and a state licensing examination are prerequisites for becoming a licensed property manager. Therefore, they can help owners navigate their business needs with an added layer of knowledge.
10. Importance of Personal Impressions
A successful match requires more than management experience and approach. Thus, find out as much as possible about potential managers by asking them about their interests, lives, and anything else that could impact their approach to their job. Since owners work closely with their managers, you must maintain effective communication and collaboration. Different communication styles could result in disagreements about important issues if you don’t have the same values.
Property management is crucial to the success of your investment, so you need to pick the right company or person. Using the tips above will simplify the process of finding an appropriate property manager. For owners throughout Huntington Beach, Fountain Valley, Irvine, Anaheim, Cypress, Costa Mesa, Newport Beach, Seal Beach, Sunset Beach, Westminster, Garden Grove, Laguna Niguel, Alison Viejo, Mission Viejo and the rest of Orange County, California look no further than West Point Property Management.
Looking for a Good Property Management Company? Look no further! West Point Property Management is your best choice! Feel free to reach out to us right away! (714) 501-3783