Transitioning from Self-Management to a Property Management Company

Letting go of a managerial position can be difficult but ultimately rewarding for landlords and investors who have self-managed their real estate for many years. Transitioning from self-management to a property management company is a big step, but it can be beneficial in the long run for all involved.

Advantages of Going with a Property Management Company

Property management companies provide many advantages that landlords need to consider. Here are few of the biggest ones:

• The most efficient use of your time. Property management services can free up a landlord’s time so they can focus on other critical investments and life matters.
• Property managers are knowledgeable professionals and experts in their field. This knowledge and expertise may be even more valuable to landlords, especially those who are novices in the property management field.
• Ensuring Tenants Adhere to the Lease. A property manager, backed by a well-established property management company, will help ensure tenant adhere to the terms of the lease and conduct themselves with the utmost respect and professionalism while living on the premises.
• Ensures Compliance with Federal and State Laws: The property management company will help ensure compliance with federal, state, and local laws, such as fair housing laws to ensure the landlord keeps their property and tenant legally sound.
• Generates additional income. A property manager might be able to optimize income more efficiently with better marketing, advertising, tenant screening, and other cost-saving processes.

Considering a Property Management Company

Once you’ve decided that transitioning to a property management company makes sense for your real estate investments, it is important to carefully examine potential companies in order to make the best decision. Here are some important questions to ask yourself:

• What services do they offer? It’s important to make sure that the property management company offers all the services you need.
• How experienced are they? Do they have a good track record with rental properties and happy clients?
• Are their fees competitive? Different companies will have different fee structures, but you should always shop around for the best combination of quality services and competitive pricing.
• Do they use modern technology? Some management companies are still using antiquated systems that can be inefficient and susceptible to human errors. Companies that invest in technology to manage property data can help streamline processes and optimize your time as a landlord.

Turnover Rate

The turnover rate is an important factor when looking for a property management company. Renters will leave tenants in and out of your properties periodically, and it’s important that the management company helps move quickly and efficiently. Not only should the management company have a process in place for tenants moving out, but they should also have a solid plan for quickly filling vacancies.

Local Rules and Regulations

In addition to the local rules and regulations for landlords, property management companies must also be familiar with local zoning regulations and ordinances.

It is wise to thoroughly research local rules and regulations on your own, but a good property management company should have an in-depth knowledge of local laws and regulations. They should also be updated on any changes in the law that might affect your property, and give you advance warning if any changes might have a large effect on your rental properties.

Credibility and Reputation

It is important to do your own due diligence on the property management company you are considering. Check online reviews, look at their websites and any past clients they may list on their website, and talk to others in the real estate industry to get their opinion on which companies they would recommend.

Contract Terms

Once you have identified the right candidate, be sure to carefully review their agreement and contract terms. Here are some things to consider:

• What services are included in the contract?
• Are there any additional services that can be added on?
• Do they require a long-term contract?
• What are the fees associated with the services?
• How is the communication handled between all parties (landlord, tenant, and property management company)?

It is important to clearly understand the contract, and make sure that it’s a good fit for you and your property.

Conclusion

Self-management can be a wonderful way to control the destiny of your rental properties, but at some point it may be in the landlord’s best interest to switch to a professional property management company. Transitioning to a property management company is a big step, but it can save a landlord time, reduce potential problems, and free them up to be able to focus on other areas of their life or investments. With careful research and due diligence, landlords can make sure that they find the right fit for their rental properties.

Q: How do you select a property management company?

A: When selecting a property management company, it’s important to do your research. Start by asking for recommendations from experienced real estate investors, and look for companies that specialize in the type of property you need managed. Research potential companies thoroughly, read online reviews, and make sure they have a good reputation. It’s also important to be sure that the company is properly licensed and insured. Interview at least 3 companies to get a better understanding of their services different fees, and policies before making a decision. Be sure to review their contract and fees before signing an agreement.

Q: What qualities should you look for in a property management company?

1. Experience and Reputation: Look for a property management company that has a track record of success and has established a positive reputation among clients and other industry professionals.

2. Professionalism: Make sure the company is professional in all aspects of their business, including communication with tenants, delivering on commitments, and adhering to lease conditions.

3. Knowledge and Certifications: Verify that the company is knowledgeable about local laws and regulations related to managing properties and is properly licensed or certified to do so.

4. Cost Effectiveness: Choose a property management company that offers competitive rates and takes measures to save you money over time.

5. Technology: Look for a company that utilizes the latest technology to optimize maintenance and manage tenant communications.

6. Accountability: A reliable property management company should be accountable for their actions and provide reports to document their activities.