Q: What does a property management company do?
A: A good property manager will interact directly, on your behalf, with applicants and tenants. Realtors will market and advertise your rentals, meet with prospects to host showings, pay vendors, pay the HOA, deposit money into your bank account, and coordinate repair issues. They will also provide the proper documents for rental and year-end tax purposes and interact with the HOA.
Q: Doesn’t it cost me more in fees to have a property management company, than self-managing?
A: Setting the right rental rates can help absorb the fees of a management company and makes you more money. Your property manager will do research to find out what the rent should be on your investment. If you don’t have experience in setting rental rates, you could ask for too little, therefore losing money – or ask for too much, also losing you money with a longer vacancy. Property management companies typically have less vacancy loss, tenants stay longer, pay on time, and take care of your property. All of these things save you money in the future.
Q: Can’t I just put my property online to find tenants?
A: Experienced property managers are experts in finding good tenants and will take care of all the details including securing all criminal background and security checks, running credit reports, verifying employment and collecting previous landlord references.
Q: What should I look for in a property management company?
A: There are a handful of things to look for including:
• How many years of experience do they have?
• Tenant retention. When tenants renew their leases, the investor saves money. Find out their average tenant occupancy.
• Accessibility. Quick response to questions and concerns of the owners and tenants keeps the room for error low.
• Vacancy loss.
• The companies understanding of landlord/tenant laws. Ensuring the property is run in accordance with the law is critical in both preventing lawsuits and shielding yourself from liability if you are sued. Familiarity with contracts is also very important, as your rental agreement is the only binding agreement between you and the tenant.
• Monthly and annual accounting and reporting methods. Timely reports on income and expenses are important.
Peace Properties is a full-service property management and real estate sales company that specializes in providing exceptional customer service on all levels. For more information, visit www.PeacePropertiesAZ.com