1-855-512-RENT (7368)So, you have decided that you would like to work with a property management company for your real estate needs. If you have started to do research, you may have found the amount of choices is overwhelming. How should you sort through the choices to find the right fit for you?
We think that finding the right management company means asking the right questions. Here are three important questions to ask when looking to choose a property management company.
What kind of experience do you have?
When the real estate market declined in the mid 2000’s, some businesses tried to capitalize on the downturn by quickly throwing together property management companies of their own. The results have been mixed, and rarely favorable, with many property owners feeling the negative effects of working with a property management company that is not experienced.
When searching for a property management company, ask about their experience. Find out how long they have been in business. Ask about their professional associations, and research how they are received in the community. A good property management company will have been in business for longer than a market downturn, and will understand how to manage your property in any circumstance. Plus, their reputation will often precede them, and they will be spoken of favorably in the industry as a company that is skilled at handling all real estate needs.
Are you bonded and insured?
It is illegal for property management companies to mix property owner funds (e.g. rent checks they collect, security deposits, etc.) with their own operating costs. The State of Ohio has a reserve fund for property owners’ money that acts as an insured trust account.
Ask if a property management company is bonded and insured, and find out how they handle managing both your and your tenants’ money. Do they mail or direct deposit your checks? What day of the month will this take place? What sort of documentation do they provide? How do they deal with bounced checks? Are they able to make payments on your behalf? How quickly do they pay vendors (e.g. maintenance workers, plumbers, landscaping companies)?
What systems do you have in place?
Reputable and experienced property management companies will have proven systems in place to manage all your real estate needs. For example, they will have an established system for handling maintenance calls so that none of your tenants’ requests “fall through the cracks.” They will have a process for handling after hours maintenance calls. They will also have an established accounting system to track your funds, assist you with collections on delinquent accounts, and ensure that you have the forms you need to file your taxes and handle your business reporting.
If you speak to a property management company that does not seem to have a good system for each of these matters, you may want to move along. Without good systems (which include both software along with internal processes and efficiencies), your tenants and properties could fall victim to missed payments, inefficient management and poor customer service.
The most important thing about working with a property management company is trusting that they will truly contribute to increasing the value of your property and the experience of your tenants. Asking these questions (and finding a company who is willing to answer them!) and being thorough in your research will help you make a good decision.
Ohio property management company REM Commercial has over 30 years’ experience in property management. We offer custom solutions for property owners, from full-service property management, to financial management, to even assisting owners with marketing and brokerage. Contact us today to learn more about how REM Commercial can manage your property.