Mt. Bachelor Property Management Blog

How to Choose a Property Management Company

Lisa Berg - Wednesday, April 26, 2023

Learn to choose the right property management company for your rental property business. Find out what to look for and what questions to ask before hiring.

If you are familiar with the rental property industry, you will agree that managing your property can be challenging. It is why many rental property owners choose to hire a property management company to help them take care of the day-to-day operations of their rental property.

Landlords generally have multiple income streams, resulting in a relatively stable income level. In contrast to the real median household income, which falls just under $62,000, landlords earn an average annual income of approximately $97,000 from all their revenue sources.

Since there are many options, choosing the right property management company can be challenging. In this article, we will discuss how to choose a property management company, what to look for in a property management company, and how to find a good property management company.

What is a Property Management Company?

A property management company is a third-party service provider that helps rental property owners manage their properties. Property management companies provide a range of services to rental property owners, including tenant screening, rent collection, property inspections, maintenance and repairs, and marketing and advertising.

Professional property managers with extensive experience managing rental properties typically run property management companies. They can help property owners maximize their rental income, minimize vacancies, and ensure their properties are well-maintained. A good property management company can make a significant difference in the success of a rental property business, making it crucial for property owners to choose the right one.

In addition to the services mentioned above, property management companies provide valuable advice and guidance to rental property owners. They can help owners set rental rates, navigate legal issues, and make informed decisions about their properties.

Property management companies can also handle the day-to-day operations of a rental property, freeing up time for property owners to focus on other aspects of their business or personal life. By hiring a property management company, rental property owners can rest assured that their properties are in good hands, while maximizing their rental income and minimizing their stress and workload.

How Can a Property Management Company Help Your Rental Property Business?

Hiring a property management company can help your rental property business in several ways. Firstly, a property management company can help you find and retain tenants, ensuring your rental property has a low vacancy rate and generates rental income. Secondly, a property management company can handle all maintenance issues and requests, saving you time and ensuring your rental property is well-maintained. A property management company can also provide financial reports and help you manage your cash flow, ensuring you maximize your rental income.

Here are some reasons to hire a property management company:

1. Increased Rental Income

Property management companies have extensive experience setting competitive rental rates that will help maximize your rental income. They can also market your properties effectively, attracting high-quality tenants willing to pay top dollar for a well-maintained rental home.

2. Reduced Vacancy Rates

Property management companies work hard to keep your properties occupied by finding and retaining quality tenants. They use proven marketing strategies and screening processes to attract responsible renters who are more likely to stay for the long term.

3. Well-Maintained Properties

Property management companies handle maintenance requests and inspections promptly, ensuring your properties are always in good condition. It can reduce repair costs and increase the lifespan of your rental units.

4. Professional Management

By hiring a property management company, you can benefit from the expertise of a professional property manager with extensive real estate industry experience. You can make informed decisions for your rental property business and achieve your financial goals.

5. Better Tenant Screening

Property management companies have the tools and expertise to screen tenants effectively, helping to reduce the risk of renter-related issues like late rent payments, property damage, and evictions.

6. Reduced Liability

Property management companies carry liability insurance, protecting you from potential lawsuits and other legal issues related to your rental properties.

7. Time-Saving

With a property management company handling the day-to-day operations of your rental properties, you'll have more time to focus on other key priorities.

You can collaborate with a property management company. They can help you run a more successful rental property business by increasing your rental income, reducing vacancies, and ensuring that your properties are well-maintained and managed professionally.

What to Look for in a Property Management Company?

When choosing a property management company, there are several things to look for. Firstly, it's important to find a property management company with extensive experience managing rental properties, particularly those in your area. Additionally, you want to ensure that the property management company is licensed and has professional certification. It ensures that you work with an experienced manager with the knowledge and expertise to manage your rental property effectively.

The fee structure is another essential factor that you should consider. You want to choose a property management company that offers transparent pricing with no hidden fees. Look for a company that offers a competitive leasing fee and a fee structure that aligns with your financial goals. Additionally, you want to ensure that the property management company has liability insurance to protect you from any potential lawsuits.

How to Find a Good Property Management Company

There are several ways to find a good property management company. Firstly, you can ask for recommendations from other local real estate investors who may have worked with a property management company they can recommend. Additionally, you can search online for property management companies in your area. Look for companies with a strong online presence and positive online reviews. It indicates that the property management company has a good reputation and provides quality property management services.

Once you have a list of potential property management companies, it's important to do your research. Visit the company's website and read its blog to learn more about its property management services. Look for companies that offer comprehensive property management services and have extensive experience managing rental properties.

10 Questions to Ask When Hiring a Property Management Company

When hiring a property management company, asking the right questions is important. Here are some questions to ask to ensure that you are choosing the right property management company for your rental property:

1. What is Your Fee Structure?

Understanding the company's fee structure is essential before you sign a contract with them, and the company should be transparent about its fees. Most property management companies charge a percentage of the rental income, but additional fees, such as leasing or maintenance, may exist.

2. How Do You Handle Maintenance Requests?

Maintenance issues can be a headache for property owners, so knowing how the property management company handles maintenance requests is crucial. Find out how tenants can submit maintenance requests, how the company prioritizes requests, and how quickly they respond to maintenance issues.

3. What is Your Vacancy Rate?

Ask the company about its vacancy rate and how they plan to attract and retain tenants. A high vacancy rate can significantly impact your rental income, so choosing a company with a proven track record of keeping units occupied is essential.

4. What Experience Do You Have with My Type of Rental Property?

Different types of rental properties require different management strategies. If you own a commercial property, you need a company that has experience managing commercial properties.

5. What is Your Process for Applicant Screening?

Tenant screening is critical to ensuring quality tenants in your rental property. Ask the company about their process for applicant screening, including background checks, credit checks, and rental history. A thorough screening process can help you avoid problematic tenants who can cause damage to your property or cause problems with other tenants.

6. What Professional Certifications or Licenses Do You Hold?

A professional property manager should have the necessary certifications and licenses to manage your rental property. Ask the company about their credentials and ensure they are licensed and certified to manage properties in your state.

7. How Do You Handle Liability Insurance?

A property management company should have liability insurance to protect you and your rental property from any legal issues that may arise. Ask the company about their liability insurance coverage and how they handle liability claims.

8. What is Your Process for Property Inspections?

Regular property inspections are essential to maintaining your rental property and identifying any maintenance issues before they become major problems. Ask the company about their process for property inspections and how often they conduct inspections.

9. What are Your Financial Goals for My Property?

A good property management company should have a clear plan for achieving your financial goals for your rental property. Ask the company about its plans for increasing rental rates, reducing vacancies, and maximizing cash flow.

10. What is Your Business Relationship with Tenants?

The property management company will be the middleman between you and your tenants. Ask the company about their business relationship with tenants, including how they handle tenant complaints, communicate with tenants, and handle lease renewals and terminations.

Learn More About Mt. Bachelor Property Management Services

If you are looking for a business for property management in Bend, Oregon, Mt. Bachelor Property Management is an excellent choice. Mt. Bachelor Property Management has extensive experience managing rental properties in Bend and the surrounding areas, and they specialize in residential and commercial property management, vacation rentals, and HOA management.

Mt. Bachelor Property Management offers various property management services, including tenant screening, leasing, rent collection, maintenance, and inspections. They also provide comprehensive accounting systems to their clients. If you want to collaborate with a licensed broker with extensive experience, Mt. Bachelor Property Management will be the right fit. Contact us today to get started!

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