To manage your residential rental property, you must have ample time, expertise, and know-how of handling it efficiently. But if you lack these three expertise then it’s better to take help from a property Management Company. These companies can manage your multiple rental properties, and can help you with tenant screening, rent collection, maintenance and legal compliance. Although entrusting any company for property management is challenging.
There are certain factors you must look at in the companies while finalizing the one for your property. Let’s have an in-depth discussion on each factor:
Excellent Experience in Property Management
Property management requires multiple tasks that can overwhelm landlords. It becomes a smart decision for property owners to hire a professional property management company with excellent experience in this field and streamlined approach. This will improve their return over investment. In many states, the government demands an authentic license. So, you must check the state’s policies and ensure that your property management company meets that.
Understand the services provided
You must hire a property management company that can meet your customized requirements. A company that can manage all your aspects related to income property will be suitable. Such aspects may include:
- Tenant Screening: This covers credit checks, background verification, rental history and employment verification.
- Rent Collection: Managing late payments, timely collection and enforcement of lease terms.
- Property Maintenance: Repair work, frequent inspections, and emergency maintenance.
- Marketing and Lease: Listing properties, and working on lease agreement.
- Legal compliance: Ensuring compliance with local laws, dealing with lease renewals and handling evictions.
Evaluate their fees structure
Fees structure of Property Management in Philippines may vary as per location, and scope of service. Let’s check some common fees structure:
- Rent percentage: The most common pricing model ranges from 8-12% of monthly rent.
- Flat fee: A fixed amount instead of charging as per monthly income.
- Leasing fee: A one-time fee to find a tenant. It is usually a one month rent or a certain percentage of annual rent.
- Maintenance Fees: Some companies may charge for repair and maintenance costs.
You must inquire about the complete breakdown of their package to avoid any hidden charges. Get a fair deal by comparing the quotation with other vendors.
Know about their tenant management process
The profit of your rental properties depends on the tenant. There are advantages of hiring a property manager as an experienced property management company will do a tenant screening to know about their history and reduce late payments risk. You must inquire about their tenant screening process that must include:
- Background and history checks.
- Income and employment verification.
- Rental history verification.
- Reference from previous landlords.
The aim is to ensure that your property must be rented to genuine tenants that can take care of your home and pay rent on time.
Know their marketing and leasing process
Vacant homes result in revenue loss. Hence your property management team should find out the tenants quickly. Know about their tenant research process and the platform they use. Effective companies:
- Take catchy photographs and videos of your home.
- List your property on reputed rental websites.
- Advertise on various social media and local platforms.
- Provide virtual tours to remote tenants.
Understand their process of financial reporting and rent collection
Timely rent collection is a pivotal part to maintain cash flow. Ask your vendor about their rent collection process and how they deal with late payments. Look for the features like:
- Online option to pay rent.
- Automated reminders for due dates.
- Late fee enforcement policies.
- Clear eviction process if required.
Also, it is crucial to maintain financial transparency. Your hired company must provide monthly financial statements, proper expenses and income breakdown, and annual tax reporting assistance.
Know their maintenance and repair policies
Well maintained property can result in tenant satisfaction and can increase the building life. Know their strategies about it:
- Frequent inspections and preventive measures.
- Respond quickly to emergency repairs.
- Vendor selection and contractor relationships.
Check the legal compliance and eviction handling
You may face challenges while navigating through landlord-tenant laws and a reputed property management company has legal expertise to ensure compliance. Check their knowledge on:
- Fair housing laws
- Security deposit regulations
- Lease agreement policies
- Eviction procedures and legal support
Don’t finalize a company that has insufficient knowledge of legal obligations, as they can put your investment at risk.
Know their customers service and communication
Your hired company must be ready to answer all your queries otherwise it will increase your frustration. You can check their promptness with:
- Calling or emailing them to show their response.
- Inquire how they deal with tenant complaints and requests.
- Checking their response in case of emergency.
Request references from other property owners
You can ask your property management company for any references of previous landlords they worked with:
- This will let you know their reliability and professionalism.
- How they coordinate with tenants.
- Their capability of handling properties efficiently.
Trust your instincts
Finally, listen to your instincts. If you don’t get positive vibes about a company- whether it is about communication, unprofessionalism or vague policies- it’s better to keep looking for other companies. You must feel confident that your property is in safe hands.
Conclusion
Getting the right company to manage your property is a crucial aspect that can make or break your investment success. Understand your needs, look for options, verify credentials and know their services before making a final decision.
You must take your time during the selection process, don’t be afraid of asking tough questions. An efficient property management company will save your time, relieve stress and will increase your rental income. So, start searching for the best property management company that has decades of experience and streamlined approach towards tenant screening, compliance, maintenance and repair and customer service.
Search for the property management company online, or offline or you can take reference from your friends and family. You should also check their reviews to remain assured about their authenticity.
