Did you know that business owners and landlords are around four times as wealthy as the average American?
If you became a landlord to generate wealth, you aren't alone. Yet, this strategy doesn't always work out for everyone. You might find that you can't handle the tasks of being a property owner and manager.
The solution is to hire property managers! Keep reading to learn the mistakes to avoid during your search.
Even if a property manager seems like the right fit, it's important not to overlook references. This ensures you cover all of your bases so you don't miss significant red flags.
You can ask property managers for lists of references. You can also try to find information online.
If you can, travel to properties they worked for in the past. Note the condition of the property and talk to some tenants about their experience.
Not Asking the Right Questions
Before you hire a property manager, you should sit them down for interviews. During this time, you need to ask the right questions.
List several questions you want the answers to ahead of time. These are common ones you might want to ask:
- What is your lease renewal rate?
- What is your eviction rate?
- What is your average response time?
You can get a good idea of the best property manager option by their answers. If a person's demeanor seems off during this step of the process, be wary of hiring them.
Focusing on Cost Too Much
Whether you hire through a property management company or find your own property manager, don't focus too much on the cost.
A cheap property manager might save you money upfront, but you won't be satisfied in the long term.
Cost is a factor to consider, but your highest concerns should be trust, transparency, and quality. Understand ahead of time what you are paying for to make sure the services align with your needs.
Ideally, property management should increase your rental rates while decreasing overall costs.
Not Reading the Contract
Once you find a property manager you want to hire, it's important to read the fine print of the property management agreement.
You should be able to exit the contract if you change your mind. Property management firms tend to charge termination fees if you want to get out of the agreement.
However, there are some companies confident in their abilities that won't charge you if you walk away.
Read the contract thoroughly to understand exactly what you are getting yourself into. Everything discussed prior to the agreement should be stated in this written notice.
Hire Property Managers You Can Trust
Being a landlord comes with a lot of responsibilities. Luckily, you can delegate some or all of the day-to-day tasks to someone who is familiar with property management.
It's time to hire property managers! When doing so, it's best to avoid the common mistakes outlined in this guide.
The best way to find someone that fits your property's needs is by hiring a property management company. Contact us today to learn how we can help you.