Do you own property and are looking for the right property management company? Here are some things to ask before hiring a property management company.
In New York, a property manager needs to be a New York State licensed real estate agent. Beware of property managers who do not have any sort of state license to practice real estate. Ask how many properties that the property manager is managing and what type of properties (duplex, small building, condos etc.) because the management of the property varies depending on what type.
Most management companies are paid based on the amount of rental income the property generates. However, there could be extra charges like tenant finder’s fees, maintenance markups, emergency on all services, maintenance reserves, evictions, court costs and other charges. Ask your potential property manager to clearly outline the fee structure in writing.
With income property, your financial data is really important to see what areas you can improve and how to make more money. A property manager needs to be able to explain everything on your reports in a clear and concise manner. Clarify when and how each report will be delivered to you.
A professional property manager will have a system for screening potential tenants. Make sure you understand what is done in the screening and who makes the final determination about the potential tenant renting the apartment.
Every property will need maintenance at some point. Find out who does the required maintenance at your property. Your property manager needs to understand what needs to be done in regards to the type of work, the correct licenses and certified contractors for the work and if there needs to be permits. Keep accurate records of what has been done and by whom.
Ask about how the rent is collected. Most property management companies have a policy on rent collection. Each lease should outline exactly when rent is due, the amount and late fees. The lease should state when the tenant is in default and when the eviction process can begin for nonpayment. Property managers need to have sample documents like leases, property management agreements, move in/move out condition reports, property owner financial reports, rental applications and common correspondence. In regards to the property management agreement, understand the terms of the agreement, including length of the term, renewal of the agreement, and how to end the agreement if either party is not happy with the partnership. Have an attorney review the agreement before signing it.
Finally, ask about references. Speak to people who have worked with the property manager and ask them to tell you both good things and bad things (if there are any). Be careful of property managers who cannot provide references.
These factors will help you in finding the right property manager for your investment property to grow and thrive.
All Area Realty Services knows what it takes to run buildings smoothly and efficiently while keeping both tenants and owners happy. With over 30 years of experience, and many clients with All Area Realty Services for decades, All Area can be trusted with taking care of your building and tenants.