Trying to do things on your own to get things done is not always something that works out, especially when you are pressed for time. With life so short and with so many things you need or want to do, getting a little help sometimes lets you achieve more goals and more time to achieve them.
Investing in properties these days is one way in which you can be assured of a secure financial future and as such, one thing that you will want to take care of yourself. But property management, is a combination of a lot of hard work, work that you may not always have time for and if neglected to a point, can spell disaster. Property management isn’t limited to simply making sure everything is in order and the house is spotlessly clean and that the plants are watered every day.
Property management involves making sure you screen and interview suitable tenants, be able to do comprehensive inspections regularly, make sure the rent is paid on time, every time and that you pay all the necessary taxes, abide by all the legislations concerning real estate and are updated about them as well. You will also need, if necessary, to hire security, make sure all the bills are paid and be able to resolve every single little problem or issue that comes up. After all this, the next thing you need to ask yourself is do you have the time to do this every day?
When it comes to deciding to hire professional help, you will first and foremost, need to know what you want. You will need to determine whether you want full-service property management or just someone who will collect the rent and act as intermediary between you and your tenants. A full-service property management company offers advertising for your property, screening/interviewing suitable tenants, provide a cleaning team and in-house maintenance to take care of your property, provide repair services and of course, collect the rent. Full-service property management companies usually charge a one-time fee plus a percentage of the collected rent for every month, as well as a one-time fee for advertising your property and placing tenants that usually amount to the first month rent.
The second thing you need to have is realistic rental goals before hiring the right property management company. Understand that the real estate market constantly changes and expecting to make enough to cover your mortgage is not something that happens all the time. You must know what the competitive rates are in your area and base your goals on those figures. Always think that at least $500 towards your mortgage is better than nothing.
Remember as well that these are the times when the internet is your best friend. Most reputable companies will have their own websites wherein they will outline the type of services they offer and will also contain client testimonials that will help you make informed decisions. You may also check with the Better Business Bureau or the local investing community about possible candidates. Once you’ve narrowed down your list, set up a meeting with each one so you can properly evaluate their eligibility for the job.
Of course, hiring the right property management company will always entail certain fees and penalties. Make sure you understand what each fee covers since there are companies that offer free advertising and there are others that charge per listing. Reputable companies will have a complete listing of their fees and rates on their websites as well as contact numbers you can call should you have any questions about them.
And the last thing you need to remember when hiring the right property management company is to read the fine print. Always, always make sure you thoroughly read and understand the management contract before signing your name on the dotted line. Management contracts are legally binding and if there’s anything about the terms that you don’t feel comfortable about, it would be best to air them out before you actually sign to avoid any legal troubles.