What to Look for in a Property Management Company
When looking for an investment property it is not uncommon to spend countless hours combing the property market, comparing market data and touring a multitude of different properties looking for the perfect investment property to meet your financial goals. Shouldn’t the same amount of time and effort be put in the finding the right property management company?
With the slew of varying property management companies available, we have put together a guide for finding your property management match.
FACTORS TO CONSIDER WHEN LOOKING FOR A PROPERTY MANAGEMENT COMPANY
1. REGULAR INSPECTION AND PREVENTIVE MAINTENANCE
Finding a proactive rather than a reactive property management company is key to ensure that small maintenance issues don’t turn into larger and costlier problems. 33 employs a diligent preventive maintenance plan which is designed to prolong the life of the owners’ mechanical systems and physical structure. Not all buildings are designed alike; therefore, 33 creates a custom routine and preventive maintenance plan for each asset under management.
2. RENT COLLECTION POLICY
Streamlining the rent collection process is an important catalyst to boost an owners’ cash flows. 33 employs the use of an online tenant portal that provides tenants with an efficient way to submit their payments. Multiple payment methods are available including ACH, credit card, check and money order. Designated property managers are also responsible for late payment follow up efforts including text messages, phone calls, personal visits and emails.
3. TENANT SCREENING PROCESS
The aftermath of one bad tenant can have long lasting financial repercussions that range from expensive unit turn overs to legal fees. It is important to find a property management company that has a comprehensive tenant screening process. 33 performs an in-depth screening process for all prospective tenants. This process includes a credit check, criminal background search, former landlord interview and an employment verification. Applications are reviewed by 33’s Director of Property Management before any tenant is accepted.
4.UNDERSTANDING OF RESIDENTIAL LANDLORD TENANT ORDINANCE (RLTO)
Avoiding the financial and legal headache of a tenant lawsuit is a top priority. Finding a property management company that is armed with the knowledge of the ever changing landlord-tenant laws will make you and your investment far less vulnerable to legal problems. 33 has a dedicated attorney to assist in legal matters and provides guidance to 33’s staff. The same council reviews all of 33’s documents and leases to ensure RLTO compliance is upheld.
5.THOROUGH FINANCIAL REPORTING
Property management companies should not only provide financial reporting but take the time to interpret the reporting. What good are the reports if key metrics are not extracted so that the owner fully understands the building’s performance? 33 employs a monthly quality control and metric evaluation check on every property. This process is designed so that the manager and owner can easily identify and rectify any issues that are falling outside the typical ranges of operating expenses.