Hiring the Right Property Management Company

Hiring the Right Property Management Company
Work Business Corporate Building Architecture

Investing in rental property is one of the best ways of building wealth, property is one of the safest investments that you will ever make.  You can build passive income as you rent it to tenants.  As passive as real estate can be it still needs to be managed and looked after.  A property management company has the experience you need for looking after your investment.  However hiring the right property management company can still be a challenge.  Let us show you what to look for.

Hiring a Property Management Firm

There are plenty of property owners that use property management companies but that doesn’t mean you have no responsibilities when it comes to your property.  The property management companies will still come to you for final approval on major repairs and other issues that come up.  But a good property management company will look after the day to day care and maintenance so that you don’t have to.  They will handle finding tenants, basic maintenance, collecting rent and cleaning of common areas.  Here is a look at everything that they do.

Maintenance on Your Property

If you manage your own property then you know that regular maintenance is the biggest job that you have.  You need to check the property regularly and make sure things like the lawn is mowed, landscaping is looked after, snow is removed from parking lots and walkways are salted.  You need to answer tenant calls whenever something breaks.  You will also have to handle cleanup when tenants leave and regular cleaning of common areas.  Maintenance can be a full time job if you have enough property.  Chances are that you already have a job or that your time could be better spent doing something else.  Let a property management company handle all of these responsibilities and free you up to do what you do.

Handling the Paperwork

A lease is a legally binding contract, it dictates who will be living in or using the rental property and what their obligations are including the amount of rent and when it is due.  A property management company can take care to make sure that all of the necessary paperwork is done when your apartment is rented to a new tenant.  Should eviction become necessary they can also make sure the process is followed to the letter of the law.  Rental property involves contracts so you want to make sure your representative in the transaction knows just what to do.

Property Management Company or a Caretaker

Property Management Company or a Caretaker
Oklahoma Skyline Business Tulsa Downtown City

When you have rental property that you don’t have the time to manage yourself then you are faced with the choice of a property management company or a caretaker.  There are those who will say they are similar but that really isn’t the case.  There are some big advantages to working with a property management company you simply don’t get from a caretaker.  Let’s look at the pros and cons of each to see which works for you.

Hiring a Caretaker

Most property owners that go the caretaker route do it so they can save money, yes a caretaker can cost you less than a property management company but then you are left purchasing any tools that they might need along with materials.  Property management companies have skilled maintenance people on staff with the necessary tools to make any small repairs that your property needs.  You do spend a bit more every month but you do get more for your money. There are typically no additional costs associated with their services.

When Things Go Wrong

Anything and everything can go wrong when it comes to rental property and let’s face it you want someone with the right experience to handle it when it does go wrong.  Does your caretaker know what to do when pipes burst at 2am in the middle of winter or are they just going to call you.  A property management company has seen it all and handled it all.  You need the peace of mind knowing that your property is being looked after when you are not around.  There are even some companies that are insured for the services that they do for you.  Yes, property management companies do cost more but they can also handle any crisis.

Valuable Experience

Usually independent caretakers are simply handymen that are good at fixing things but don’t really have the experience in managing properties they may be able to fix a dripping tap but how will they handle difficult tenants.  Property management companies can do so much more than just basic maintenance, they can make sure your property stays rented, screen tenants for you and handle evictions when needed.  They have experience in a variety of situations related to rental property that you just won’t get from a solo caretaker.  If you are faced with the choice of a property management company or a caretaker then property management companies are the hands down winners.