How to Choose a Property Management Company
When it comes to managing your rental property, it’s important to find a property management company that can take care of all the details. However, with so many options to choose from, it’s difficult to know where to start.
Our Central Texas property managers break down what to look for in a property management company here.
What Is a Property Management Company?
A property management company is a business that provides various services to property owners and landlords. These services might include managing and maintaining rental properties, handling tenant issues, and collecting rent.
What to Look For in a Property Management Company
- Years of Experience
- They’re Local
- Open Communication
- Legal Compliance
- Full Range of Services
Look for a company that has been in business for years and has a proven track record of success. An experienced property management company will better understand your local rental market and can help you set the right price for your property. Bonus points if they have a lot of online reviews or a testimonials section on their website.
If you have a friend or family member who worked with a property manager, it’s never a bad idea to ask whether or not they recommend the company they went with.
No one understands your community like a local property management company. They know your market inside and out, and because they’re located in your neck of the woods, they’re more aware of the specific needs of your investment properties.
You also want a property manager that understands the municipal laws that apply to your home and has connections to any local maintenance and repair businesses.
A good property management company should be easy to reach and quickly respond to any questions and concerns. They’ll also provide regular updates on the status of your property, including occupancy rates, income and expenses, and any issues that need to be addressed.
Before hiring a property management company, check if they’re up-to-date on all local, state, and federal laws and will help you comply with them — for example, safety regulations, fair housing, and eviction laws. Property managers who screen tenants, negotiate leases, or collect rent must also have a real estate salesperson license and work with a broker who manages properties.
If a company can’t provide this information or it’s not on its website, keep looking.
Whether you hire an individual property manager or a property management company, be sure you get the most out of your investment. Most full-service property management companies, like 512-Society Property Management, offer various services, including but not limited to the following:
- Rental property maintenance – A good property management company will have a system for maintaining properties, including regular inspections and a network of trusted contractors to handle any necessary repairs.
- Marketing – The company should have a strategy for marketing your rental property and finding suitable tenants. Look for a property manager that has a solid online presence and is well-versed in online marketing strategies.
- Financial management – Choose a company that can handle the financial aspects of property management, such as collecting rent, paying bills, and addressing any accounting or tax-related issues.
The cost of property management services varies by the property manager, so make sure you understand the company’s fee structure. Some companies charge monthly flat fees, while others ask for a small monthly fee plus a percentage of rent.
- Percentage of monthly rent – Many property management companies ask for 8-12% of the monthly rent collected. So, if you charge tenants $1,000 monthly and your property manager asks for 10%, your monthly fee would be $100.
- Fixed property management fee – Companies that don’t collect a fee based on a month’s rent percentage might offer a flat fee. In most cases, the proposed number is based on the size and type of property, as well as the property management services provided.
Overall, look for a property manager who is open and transparent about their fees and services and will regularly provide you with detailed reports and statements.
A property manager should give you peace of mind that your investment property is in the most capable hands. It’s their job to handle the day-to-day responsibilities of managing your tenants and properties.
Once you’ve reviewed all the details, choose the property management company that meets your needs, provides professional services, and can help you enjoy the benefits of owning rental property without the headache of managing it on your own.
Property Management Services in Central Texas
By keeping these factors in mind, you can be confident you’re choosing a management company that will care for your property and helps you achieve your investment goals.
512-Society Property Management has provided professional property management services throughout Central Texas since 2005.
About the Author: Jessica Duncan is the 512 Society Property Management Broker. She and her family opened the business in 2005 and has assisted more than 12,000 clients with professional and reliable management services. Call 512-990-3551 for more information.