Real estate is a good long-term investment. Selecting the right property management company is key to maintaining the value of your property and retaining tenants. In addition to the physical property maintenance, the management company needs to ensure tenant satisfaction and manage budgets. Prevent hassles in the future by hiring the right company now.
Have A Plan
Develop a basic process to follow during the interview process. Determine the information you need from candidates and create a form or outline. To compare companies accurately, ask the same questions to each company. Preparation will help you avoid making rush decisions you may regret later.
Use the internet, other property owners, and local business organizations for recommendations. Select at least three companies you would like to review. It’s preferable to meet face-to-face. What you learn about the management team by meeting in person is as important as their reputation on paper.
If the sales or management representative doesn’t take the time to dress professionally, will they conduct themselves professionally? How do they relate to you? Do they listen attentively, or are they distracted looking at their phones? Their behavior during the interview process will tell you a lot about the company.
As noted above, ask the same questions to each candidate. The information you gather from each company will be consistent and easier to compare. Here are some questions you should ask at your first interview:
- Number of years in business
- Experience handling similar properties
- Number of properties they currently manage
- Staff structure and retention
- References from current or previous clients
Contract and Fees
Read the management company’s contract carefully. Make note of the services they provide, what your obligations are, the term of the contract, the process if one of the parties decides to end the contract, and fees. Working with the management company through the negotiation process will provide a glimpse of their transparency and how they interact with tenants, service providers, and other community contacts. You want a management company who will represent you professionally and will enhance your reputation.
GSX Ventures is a real estate development and consulting firm that specializes in the discovery and strategic repositioning of properties to support targeted real estate investments. Contact us today for an appointment.