A rental property is a great investment potential for you to build for your future and retirement. However, its management is a detail that you don't want to overlook. By hiring a great property manager, you can leave the day-to-day tasks and expertise to a team that knows how to make your property successful. Here are some recommendations to help you as you search for the right property management company.
Evaluate Tenant Screening
One of the most important tasks your property manager is going to handle is tenant screening. Anytime you have a vacant rental property, it is losing out on income and your property manager's goal is to rent it. However, they should not just rent the property to the first applicant that applies for its tenancy unless they are qualified. It is important that your property manager qualifies any tenant before they move in. This should be done through good tenant screening and by making an evaluation of their credit and background.
A bad tenant is more likely to cost you money on the property, which can occur if they stop paying their rent or they cause damage. The costs associated with a non-paying tenant go beyond the rent you don't receive; you also lose out on legal costs to evict them. For this reason, a good credit check and background evaluation are good to qualify an applicant before they are given the keys to your rental property. Ask for details of a property manager's screening and approval process to give you a good idea of what you can expect.
Look at Management Fees
One of the questions you need to look into for a property management service is the cost of their service. A property manager is going to handle your property's management and will require a fee, usually a percentage of the property's rent. If you own a multi-unit property or a single-family home, this fee rate may vary based on the number of units you own. The more units in a building will usually provide you a lower percentage fee rate.
Your property manager may also ask for a rental fee when they find a new tenant for your property. Sometimes this might be the cost of the first month's rent or a predetermined rate that is in addition to the monthly percentage. You will also want to know if they will charge you a monthly fee even if your property is vacant. These costs and fees are important for hiring a successful property manager, but get a good understanding of them. To learn more, contact a property management service.
