How to Screen Property Management Companies
There are a lot of different property management companies available in areas all over the country. Unfortunately, not all companies are reliable, competent or capable. As a commercial real estate investor, you need to make sure you are properly screening these management firms. You need be aware of your needs, ask the right questions and know what answers are best.
To screen a firm, you first need to figure out your needs. Do you live in a different state than the properties? If so, you need a company that will visit the tenants and fix any issues that may come up. If not, you may only be looking for a manger who will be able to handle the bill portion of your investment. Figure out what elements of property management you need, and then ask questions to help you find a company with those abilities.
Next, you have to go to different groups and ask questions. You should learn about the company history by asking about how many properties they currently manage and how long the firm has been in business. You also need to learn about the company’s knowledge of the area. You can ask questions regarding the city and its unique areas and vacancy rates. You want a company that is familiar with the city and the industry otherwise the firm may not make the best management choices. To learn about industry knowledge, you should ask specific questions about rental properties.
What sort of answers should you be looking for? The answers that the property management firm gives should reflect the abilities of the group. If you ask how you can improve your profits, its reasonable for you to assume the company will have some ideas for you. You should not get evasive answers. In other words, if a group seems to never directly answer the questions you are asking, you may want to continue your search for the manager of your properties at some other company.
Finding the right property manager for your needs is important. You are going to be trusting this person with a big investment. You want to be sure that the company or manager will take care of your tenants, fix problems and keep accurate accounting records. To find this company, you have to know what questions to ask and what features are most important to you. Screen companies by figuring out a list of questions that help you learn about important aspects of the corporation.