Are you a property owner looking to hire a property manager or a property management company? Making this decision is not an easy task. After all, you are entrusting your property to a professional, and you want to ensure you make the right choice. In this guide, we'll cover everything from the differences between management companies and sole proprietors to the questions you should ask, what you can expect to pay, and more. So let's dive in!
What Do Property Managers Do?
A property manager takes care of all aspects of managing your rental property. From marketing and tenant management to rent collection and maintenance oversight, they handle it all. They even handle emergencies that may arise. Hiring a property manager allows you to relax and enjoy the benefits of your rental property without the hassle.
Here are some key reasons why you should consider hiring a property manager:
- No need to hassle with rent collection or property maintenance.
- Provides a layer of legal protection between you and any liability related to the property.
- Saves you time by handling emergencies, marketing, tenant interviews, credit checks, and inspections.
Property Manager vs. Property Management Company
When it comes to hiring a property manager, you have two options: an individual property manager or a property management company.
Property Manager:
- Works individually or with a small team.
- Provides more personalized attention to your property.
- Connected to the local community.
Property Management Company:
- Consists of a team of people managing multiple properties.
- Offers better marketing programs, translating into shorter vacancy periods.
- Usually more efficient in terms of payment processes.
- Can often provide more competitive rates.
Hiring a Property Manager
When dealing with an individual property manager or a small team, the process is more akin to a job interview than receiving a service quote. They will have set rates and practices, but they will also be more directly involved with tenants. Getting to know them a little can go a long way in making the right choice.
Here are some qualifications to look for in a property manager:
- Background in property management: Look for someone with experience and a successful track record. Even those starting out on their own should have prior experience working for a larger rental management company.
- Background in property maintenance: While individuals may subcontract maintenance work, it's essential to find out if they have experience in property maintenance.
- Professionalism and punctuality: As with any good job applicant, property managers should be professional and punctual.
Before inviting a property manager for a site visit, ensure that your property is clean and any necessary repairs or renovations are completed.
How to Find a Property Manager
Start by looking for property managers near your location. Once you have a list of potential managers, check their reviews and ratings. If you like what you see, call a few and conduct interviews. Here are some questions to ask during the interview:
Questions to Ask to Find A Good Property Manager
- What are your fees? Most property managers charge between 5% and 10% of the monthly rent.
- Can you show me a sample of the owner contract and lease agreement? They should have these documents readily available for review.
- What services do you offer? Most property managers offer comprehensive property management services, including marketing, administrative work, rental collection, and maintenance oversight.
- How do you market my home? Marketing techniques can vary by area.
- How do you decide on a rental rate? Property managers usually use regional market rates as a benchmark.
- How do you screen tenants and what qualifications do you require? Credit checks, employment verification, and positive rental history are typical factors considered during tenant screening.
- How many properties do you oversee? Property managers with fewer properties can provide more personalized attention to your property.
- Can I cancel my contract with you, and if so, is there a penalty? Make sure you understand the terms of the contract upfront.
- Can you provide me with any references?
- Who do you have as a support team? Most property managers have a small support team that includes accountants, marketers, clerical staff, and at least one handyman.
Remember to write down any additional questions you may have beforehand.
Hiring A Rental Management Company
Hiring a rental management company is more like evaluating an established business practice than interviewing an individual. Instead of entrusting your property to a single person, you will be working with a team.
The advantages of hiring a rental management company include:
- Better marketing programs: Large companies usually offer the best marketing programs, resulting in shorter vacancy periods.
- Efficient payment processes: Larger companies can afford automated payment systems.
- Competitive rates: Scaling operations allows companies to offer more competitive rates.
Questions for a Property Management Company
In addition to the previous questions, here are a few more to ask when dealing with a larger property management company:
- Do you assign property managers to specific properties or are they pooled? Knowing whether you will have a consistent point of contact is important for ease of communication.
- Do you have real estate agents involved with rentals or working for the company? Real estate brokers can provide expertise in housing and market value assessment.
- How many properties does each property manager oversee? Balancing the number of properties managed against personalized attention and price is crucial.
Hiring a Property Manager for Your Vacation Rental
Short-term rental properties, such as those listed on sites like Airbnb and Vrbo, require a different approach. These properties require more frequent attention, similar to managing a hotel. Some property managers specialize in vacation rentals, but their rates may be higher due to the increased hands-on attention and support team involvement.
Airbnb Property Management Questions
- How many properties do you list on Airbnb?
- What is your occupancy rate?
- What are your fees?
- How large is your support team?
- What cleaning and sanitation procedures do you follow?
- What criteria do you use to accept reservations?
- Are you insured?
FAQs
How do property managers get clients?
Property managers often acquire clients through real estate agent referrals, online searches, and digital advertising. They also rely on client referrals.
With this comprehensive guide, you are now equipped to make informed decisions when hiring a property manager. Remember, finding the right property manager can ensure that your rental property is well-managed and profitable, giving you peace of mind and a significant return on investment.
No Comments Yet