If you are looking for a good rental property management company, there are several things to consider to help make your search easier. Many apartment and commercial real estate investors realize that finding a good property manager can truly make the difference between a good investment and one that could be marginal, and even lose money.
OK, so “How do I find a good property management company?”
1. Research
Begin your search by doing a little bit of research on some potential property managers. Depending on the size of your market, you may have only a couple of companies to several to choose from.
You can do some research online – searching for comments on different companies and reviews from both tenants and owners. Keep in mind that most of the time you are going to find negative reviews when you search online. I know… shocking, right? Well of course the thing is that people that are happy with their service or happy with their apartments do not take the time to post positive comments. It’s pretty much common knowledge, but just thought it was worth mentioning here –
Where is the best place to do your research?
#1. Commercial Real Estate Brokers
#2. Other Owners
#3. Your Local REIA or Landlord Association
Talking to these folks for just a few minutes is worth days searching online. You are going to get the “real world” answers and will likely narrow down your choices to just a few.
2. The Interview
From your “short list” that you’ve accumulated during your research, you will want to arrange an office visit. This is basically an interview of your prospective property manager. You can honestly do this either at their office, or even at your property that you would like them to tour. You will want to ask them for a list of properties that they manage and any references of owners they are managing for.
What are their management practices? Do they have written procedures for both employees and residents? How often will you receive reports and in what format? The list goes on, but you will want to get a good idea of their “best practices” that they are using to manage their properties.
3. Property Visits
Next, take this list of properties and drive them. Call them. Whatever it takes, and whatever you have time for. The main thing is to get a pulse on how their other properties are being managed and how they are running. Are they being maintained properly? Do the employees seem friendly and helpful? If you secret shop them, do they answer your questions and “sell” you on the benefits of the property.
4. Contracts
OK, next is decision time. Based on your research, office visit, property visits, and referrals, which one is best? What are their contract terms? What does their property management fee include? For example, does it include all accounting, rental turnovers, etc.?
5. Review and Regular Inspections
Once you have chosen a property management company, you will want to conduce regular inspections of your units. I recommend twice a year, if possible, but at a minimum, do a walk-through of your units *personally* every year. During this inspection, you will be able to monitor for any resident or property issues that need to be addressed. Do not just leave things up to your manager – you must stay involved as the asset manager.
