Landlords who manage one or more large multi-family properties can’t afford to take chances when it comes to property management. The right company can help landlords retain tenants and grow their bottom lines, but the wrong one can put the entire operation off track. Read on to find out how to select the right property management company and avoid trouble.
Prioritize Relevant Experience
Finding a company that has plenty of relevant experience should be a top priority. That means not just choosing an organization that has been in business for at least a few years but also finding experts in the field who are familiar with property management in Santa Barbara. Every region and submarket has a slightly different set of requirements when it comes to resident preferences, unit upgrades, and rental prices.
Ask About Maintenance Processes
Every property management company has a set of processes in place for handling maintenance requests. The best of them take advantage of relevant technologies and industry connections to provide fast response times and professional repairs. However, landlords should note that many property managers add 5-10% maintenance fees to their invoices.
Request Monthly Data Reports
All serious property management companies now utilize software that automates processes and collects data. Ideally, the company will offer landlords real-time access to data reports, but that’s not always the case. At a minimum, the property manager should send a detailed financials and status report by the fifth or sixth of every month.
Look for Favorable Contract Terms
No landlord hires a property management company with the intention of firing them within the year, but that doesn’t mean termination clauses aren’t necessary. Normally, property management companies onboard new clients using six to twelve month contracts that feature 60-day cancellation notices. If the company only offers longer contract terms, that’s not a good sign.
Ask About the Services Provided
A good property management company will offer a full range of services, from rental marketing and applicant screening to property maintenance and rent collection. For large, multi-family residential investment properties, full-service property management is an absolute necessity. Landlords and investors don’t have time to be dealing with rent collection or handling applicant screening, and it makes little sense to hire one property manager for maintenance and repairs and a second company for legal documentation and interfacing with the tenants.
Check References and Reviews
Any property management company that has been conducting business in the area should be able to provide testimonials, reviews, and/or a list of references. Checking references and reading through reviews online can be a good way to gain insight into what it will be like to work with the company. Just keep in mind that even the best property managers will likely have a few disgruntled former clients, so it’s best to look for trends, not individual complaints.
Listen to Instincts
Before signing on the dotted line, it’s important to schedule one-on-one meetings with prospective property managers. This interview will give the property owner time to get a feel for the company and the services it provides. If something seems amiss, listen to your instincts and consider looking at other options.
Start the Search Now
It takes some time to find a qualified property management company. Investors may even want to begin the search before they purchase new rental properties in the area, as local property managers often have insight into different neighborhoods and local tenant expectations. Start the search for a good property management company as soon as possible.
