Top 5 Tips for Choosing the Best Property Management Company
Approximately 41% of all rental housing owners are individuals, meaning many people manage rental properties on their own. However, managing a property entails a lot of work, from screening tenants to handling repairs, collecting rent, and dealing with evictions. These responsibilities can become overwhelming for a single person.
If your rental property is taking up too much of your time, or you’re struggling to keep up with tenant requests, it might be time to consider hiring a property management company to help you stay on top. A professional property manager can improve tenant retention and tenant satisfaction, reduce the risk of legal issues, and ensure reliable rent collection, allowing you to focus on other areas of your life and investments. Great property managers make a world of difference.
To help you research the property management industry and find the best fit, here are the top five tips to guide your search.
1. Determine the Type of Property Manager You Need
There are different types of property management services depending on the type of property you own. For example:
- Residential Property Management - Deals with single-family homes, condos, and apartments, focusing on tenant relations, maintenance, and rent collection.
- Commercial Property Management - Involves managing office buildings, retail centers, and industrial properties, often requiring knowledge of business tenants, leases, and regulations.
- Multi-family Property Management - Specializes in overseeing apartment complexes or housing communities with multiple units, often requiring additional skills in building maintenance and tenant community management.
Choose a property manager who has expertise in your specific property type, provides great customer service, and understands the unique needs, tenant expectations, and local regulations. Specialized experience is essential to handle the complexities of each property type and reduce tenant turnover.
2. Ask for Recommendations
A great way to start your search is by asking for recommendations. Connect with other property owners, colleagues, realtors, and contractors to gather a list of potential property managers. Many property owners rely on word-of-mouth referrals to find a reliable management company.
Online reviews on platforms like Google and Facebook can also provide insight into a company’s reputation. Once you have a shortlist, verify the companies’ credentials through the Better Business Bureau and your local Real Estate Commission to ensure they are legitimate and have no major complaints against them.
3. Hold Interviews
Interviewing potential property managers is essential. This will give you a sense of their professionalism, communication style, organizational skills, and approach to property management. Arrange a face-to-face meeting or request a tour of properties they currently manage to get a firsthand look at their work quality.
During property visits, talk to current tenants if possible. Their feedback can reveal how well the management company addresses tenant concerns and maintains the property and if they are renewing their leases. A good property management company will have satisfied tenants and a well-maintained property portfolio.
4. Important Questions to Ask
During interviews, ask the following questions to help you evaluate potential property managers:
- What is your success rate in managing similar properties? – Look for managers with proven experience and successful property management records. Ask about their tenant retention rates.
- Can you provide references? – Contacting other property owners they work with can give you valuable insights.
- Are you licensed and certified? – Ensure they hold the required property management licenses and certifications for your area. Florida property managers are not required to be licensed, brokerages are.
- Do you carry insurance? – The company should have general liability insurance and property casualty insurance to protect you and your property.
Thoroughly vetting these details will help you ensure that the property management company is equipped and trustworthy.
5. Review Contract Details Carefully
Before signing any contracts, review the services offered and their associated fees in detail. A clear understanding of fees and services will help you avoid unexpected charges and ensure that you receive the services promised.
Contracts should include important elements such as:
- Start and End Date - Specify the length of the agreement; most property management contracts are one year long.
- Services Provided - List all services the company will manage, from rent collection to tenant communication.
- Termination Clause - Ensure there is a clause allowing you to end the contract if you are dissatisfied with their services.
A well-defined contract will protect both parties and outline clear expectations.
Why Allegiant Management Group is the Best in Florida
At Allegiant Management Group, we understand the property management business from top to bottom. We manage every aspect of your property, from collecting rents and tenant screening to evictions and maintenance. By entrusting us with your property, you save time, avoid legal headaches, and enjoy peace of mind knowing that your investment is in good hands. If you are looking to contact a porperty manager for rental, look no further than Allegiant.
With extensive experience in Florida’s real estate management market, Allegiant Management Group has become one of the most successful property managers in the state. Let us help you with your Orlando Florida property or other greater Orlando properties. Learn more about us here and see how we can help you with your property management needs.
Frequently Asked Questions
1. How much does a property management company typically charge?
Property management fees can vary, but they generally range from 8% to 12% of the monthly rent collected. Some companies may also charge additional fees for specific services like tenant placement or maintenance coordination.
2. What are the benefits of hiring a property management company?
Hiring a property management company can save time, reduce stress, improve tenant retention, ensure timely rent collection, and provide expertise in handling tenant and property issues, which can ultimately lead to higher returns on your investment.
3. What services are included in property management?
Typical services include tenant screening, rent collection, maintenance management, lease enforcement, and handling tenant relations. Some companies may also offer accounting services, eviction processing, and legal compliance management.
4. How can I tell if a property management company is reputable?
Look for online reviews, ask for referrals, and verify the company’s credentials with organizations like the Better Business Bureau and local Real Estate Commission. A reputable company will have a good track record, clear communication, and satisfied clients.
5. Can I terminate my contract with a property management company?
Yes, most property management contracts include a termination clause. It’s important to review this clause carefully and understand the notice period and any potential fees associated with ending the contract.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered legal advice. Always consult with a licensed attorney for specific legal guidance.
Blog Updated: 11/9/24
