Managing your own investment properties gives you 100% control over what happens on your turf. However, most investors choose to outsource the tasks of a property manager to licensed professionals.
To reap all of the benefits that come with doing this, you need to learn how to choose the best rental property management company. Because there are a variety of factors to look for, we created this guide.
Keep reading to discover how to choose the right property manager for your real estate investments.
Look for Specialized Experience
The rental property management industry is complex as there are different federal, state, and local laws to abide by. Look for a company that has a proven record of managing different variables.
If you own a particular type of investment, find a property manager that has experience caring for that investment type. Companies should have specialized training to tend to your investment properly.
Verify Licenses and Certifications
The last thing you'll want to do is hire a property manager that doesn't have proper licensing and professional certifications. Although some states don't require a real estate license, professional affiliations are still important.
You can check with the real estate commission in your state to see if a property manager's real estate broker's license is still current.
Check Reviews and References
Google reviews, Yelp, and Facebook are all great places to check reviews and references. Keep in mind that not all reviews of a property management company will be accurate.
Some tenants might have negative thoughts that don't reflect the work of a property manager. Despite this, review sites are a great resource for comparing different companies.
For more in-depth reviews, check traditional sources like the Chamber of Commerce and the Better Business Bureau (BBB).
Read the Property Management Agreement
An agreement from the property management company should outline business relationships between them and the clients. The agreement should be tailored to your needs as an investor.
If you want to reap the benefits of property managers, check the tasks and responsibilities that they are required to complete. The agreement should cover the following:
- Owner responsibilities
- Contract duration
- Termination clauses
Make any necessary amendments before signing anything.
Ask for Proof of Insurance
You wouldn't hire a contractor without proof of insurance and the same should go for a rental property management company. This may or may not be outlined in the agreement so ask for proof if necessary.
General liability insurance is a must for rental home property management companies. Some might also have property-casualty insurance and errors and omissions (E&O) insurance.
Sufficient insurance will protect you and your investments as well as the managers you hire.
Choosing the Right Rental Property Management Company for Your Needs
Investors have enough on their plate so delegating rental property management to a professional company is common. To have a successful partnership, you need to know how to choose the right business.
With the tips in this guide, you'll be able to find a reputable property management company for your needs.
Our pros at Blue Ribbon Property Management can help investors with their real estate. Contact us today to learn more about our services.