Top 7 Tips For Choosing A Property Management Company
By Eric Carvajal
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With home prices soaring, residential rental properties continue to make for great investment in Central Austin. However, as cost of owning rises as well, an efficiently managed property becomes increasingly more important. Choosing a property management company that will properly manage your rental property can be difficult. The following tips will ensure you make the right decision.
- Choose a company that is knowledgeable of the local market
Making sure the property management company that you are using knows the local rental market is must! Knowledge of the local market means that your property manager knows what renters are looking for. If your property management company is a good one, they will think of the property as if they were a renter. Making smart and cost conscious recommendations to the owner that will increase overall return while improving the property so that it becomes more desirable, will help increase rental rates, lower turnover and decrease vacancy. Your property management company should make sure that your property always stays competitive in the leasing market.
- Set up a meeting with the property manager and make a plan
If the property management company you are choosing is a good one, they will set up a meeting with all new property owners and make a game plan. Getting to know your property manager will help improve the interaction and can give both the owner and the property manager a good idea of how they will work to improve the return for that property. Each property plan is different and is based on the goals, plans, and budgets of the owners. Designing a property plan that is right for each owners needs is the key to successful property management
- Ask your property manager for the names of three references
Nobody can give a better picture of the service, than a current customer. Ask your property management company to give you the names of three clients with similar type properties. Get in contact with those people and ask them questions that you feel are important to the success of your property. They can tell you best and can usually give a good picture of the strengths and weaknesses and their contentment with the service
- Find a property manager that offers great customer service.
Wouldn’t it be great if you could always get a hold of your manager whenever needed? Choosing a property management company that strives to offer great customer service and delivers is the way to go. Good customer service is something you should expect and a company with good customer service has to make sure the other aspects of their business are on point because they are always telling you about it. Keeping owners informed and constant communication about the market and how their property is being managed is necessary in any property management relationship.
- Make sure your money spends time in your account, not the managers
Property management companies typically collect rents on the first of each month. It should take no longer than eight days to collect rents and prepare all monthly statements for each property. That money is the property owners and should be in their bank accounts as much as possible. Earning interest on the rental revenue can really add up in the long haul. Some property management companies will try and keep the revenue in their account as long as possible so that all interest earned is earned in their accounts, not the owners.
- Find a property management company that knows accounting
Accounting for revenues and expenses with investment property can be a difficult task. Organization and great accounting skills will ensure your property management company is accounting for your property correctly. At the end of the year when tax season comes up, all of your income and cash flows should be easily accessible and in the correct order to make your tax paying easy.
- Make sure to find a property management company that good relationship with the tenants
A good property management company has good relationships with their tenants. Tenants are a customer of the property and should be treated like one. Happy tenants leads too lower turn over, and thus less re-letting fees. Happy tenants will also make releasing much easier. A reputable property management company with a good name in the eyes of the tenant is not easy to come by. Choose a property management company that cares, it will increase your property’s return
Eric Carvajal, Broker/Owner of the Carvajalgroup.com. The Carvajal Group offers full service representation, from buying or selling Austin real estate to Austin property management. We can help with buying, selling or managing your property in beautiful Austin, Texas.
Article Submitted On: October 31, 2007