Questions To Ask Before Hiring A Property Management Company

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If you keep accumulating rental properties, you will eventually reach a point when managing them becomes really demanding. At this point, most landlords hire a property management company to help them take care of the day-to-day work associated with rental property ownership and maintenance. In most areas, there are a few property management companies you can choose from. So, you will want to ask smart questions when interviewing and comparing them. Here are some good questions to ask.

Does the company find tenants?

Most, but not all, property management companies will find tenants, screen those tenants, and go through the process of having the tenants sign lease agreements. This is a huge part of property ownership as the tenants you find will make a big impact on how consistent your income is and how well the units are cared for. It is often best to let a property management company take care of these tasks for you because they have lots of knowledge and experience in this regard. If a property management company does not offer tenant screening services, you may want to look for a different company.

Will you be communicating with one contact person or several?

Although the property management company will do the day-to-day work, they will have to keep you updated, and they will have to reach out to you with questions from time to time. Some companies will assign one contact person to your account, and you'll get all of your help and information from that one person. This is ideal. If a company wants you to keep in touch with one person for leases, another for maintenance work, and another for legal issues, that will be more cumbersome to juggle. 

How long are contracts signed for?

Some property management companies let you sign a one-year contract for their services. Others require longer contracts. If you are new to property management and are still feeling out whether it is right for you, then you may prefer to hire a company that offers shorter contract periods. On the other hand, if you are more confident in your "fit" with a certain company, you can often save money by signing a multi-year agreement.

Asking the right questions will give you a better idea of what each property management company has to offer, which will help you select the company that can best serve your needs.

Reach out to a local property management company to learn more.