Find Best Property Management Companies Near You

Property managers maintain both the physical condition and the operation of their clients’ rental property. Real estate management companies usually specialize in a particular type of investment property. For example, a retail property has management requirements that are different from the ones of a residential property. There are several types of residential properties that need different levels of expertise. The owner of single-family home rental properties may not need the same realty management services that the owner of a condominium project or an apartment complex may need. A good property management agency will maintain your property, find the best tenants for you, and fix their problems when they arise. They will collect rents, maintain lease records, and ensure compliance with all local, state, and federal fair housing and consumer protection laws.

Property management and maintenance is a full-time responsibility. Managers regularly inspect the premises, schedule servicing of equipment and systems, and respond to tenants’ calls at all hours. If the property is a multifamily property like a townhouse development, they may have an office onsite and will manage any other employees. Leasing of the property is done by the property manager including research of local rents and vacancies, setting rental rates and policies, and marketing the property. They screen applicants including ordering credit reports and, in some cases, criminal background checks. Once the tenant leases the property, the property manager collects their rent payments. Property managers have to be knowledgeable about fair housing laws, your lease form, basic bookkeeping, and the proper handling of security deposits. They also have to know the laws in your location regarding the legal eviction of tenants.

National surveys show that residential property managers charge basic fees on average from 8% to 10% of rents. This means that actual fees could be as low as 6% or as high as 12%. The cost difference will be how many units are being managed and the scope of services. Make sure that your contract specifies a percentage of rents collected, not rents due. Some property managers may offer a flat fee. You should always run the numbers because you may not actually benefit from that arrangement. In addition to basic management fees, a property management firm may charge other fees. Leasing fees are charged when the management company finds a tenant to rent a vacant unit. This covers the costs of advertising, commissions, etc. Try to negotiate smaller leasing fees for short term tenants. This removes any incentive for them to encourage short term leases so that the unit turns over more often and they make more fees. If you agree to a leasing fee, you should not have an advertising fee. A property manager may offer to pay all your bills such as your mortgage payment and insurance premiums for a fee. They may also want added fees for evictions because this takes more of their time than normal management duties. You should avoid charges such as vacancy fees, renewal fees, or a portion of the late payment fees that you charge your tenant. This is not advisable. Your manager was responsible for selecting the tenant and collecting the rents in the first place. Remember, rates and fees are negotiable. Try to find a property manager that best fits your business and your type of property.

Most states require that a property manager either be a licensed real estate broker or have a property manager license issued by the state. Only a few states allow unlicensed persons to perform the duties of a property manager. One of the benefits of property managers being licensed is that they have to go through annual continuing education in most states. This helps them to keep up with changes in fair housing and consumer protection laws that could affect your business. Since this is not uniform throughout the country, you should check on the laws in your state and make sure that a prospective property manager or firm is licensed before hiring them.

Experience is the key quality of a good property manager. If someone wants to break into the business, they should work for an experienced property management firm first, not learn at your expense. It takes a mature, experienced manager to properly represent you and protect your investment. The characteristics of a good property manager include good customer service and communication skills. Think of your manager as the face of your business. The way that they treat people will determine the kind of reviews that tenants and potential tenants give your property on review sites and social media. They should look and act professionally at all times. A property manager needs to be both patient and firm when dealing with tenants. A pleasant but professional demeanor will help them to deal with any situation. The multitude of tasks that a property manager must perform on an ongoing basis requires them to be well organized. It helps, however, if they can also be flexible. This is especially true when working around the schedules of tenants and contractors.

If you know or can meet other investors who own similar property types, you should get referrals from them. Talk to people in the local real estate investment club, or at seminars or other industry gatherings about who they have used for property management. Look online for similar properties. The leasing contact shown there should be the property management company for the property. Visit the property to see how it is maintained. Check online reviews to see how they treat tenants and rental applicants. A great place to start is the list of experienced and reliable real estate management companies located on HouseCashin. You can have confidence in our collection of property managers that have been reviewed and selected by real estate professionals for real estate professionals. Our directory of the best property management firms in your area takes the guesswork out of selecting the right property manager. Don’t put your hard-earned investment property in the hands of just any property manager before consulting HouseCashin.