3 Tips To Help You Select The Right Property Management Company To Hire

If you have invested in residential or commercial property, renting or leasing it out can be a great way to secure a good source of cash flow during the time that you own your property. However, being a landlord can be a lot of hard work, and it can be especially challenging if you have no experience at all. This is why many real estate investors choose to work with a property management company. A good property management company will take care of many of the tasks that fall on a landlord, such as screening tenants, collecting rent, taking care of maintenance and making repairs. If you're interested in using a property management service, use the following tips to help you select the right company to work with:

Don't Look for the Property Management Company That Offers the Lowest Price

As a real estate investor, it makes sense to want to keep your expenses low. However, this rule should not apply when choosing a property management company to hire. Instead of focusing on finding a property management company that offers the lowest price, look for one that provides the best value. A highly experienced and reputable property management company may charge more than other companies, but if they provide all of the services that you need, the extra cost is well worth it.

Know What Questions to Ask

Before you hire a property management company, it is in your best interest to narrow down your options and ask each one several questions. Some important things that you need to know are the lease renewal rate for the company, the eviction rate, and the time it takes the property management to respond to you or the tenants in your property. Ideally, you should select a property management company that has a high lease renewal rate, as this eliminates the costs associated with turnover and finding new tenants. The eviction rate should be low--property management companies that properly screen tenants should not have to do evict many tenants. You also want to work with a company that will make responding quickly a priority.

Understand What Services Are Included

Prior to signing a contract with a property management company, it is absolutely essential to know what services are included. Carefully read the contract and make sure that you have a complete understanding of what services will be provided by the property management company. The contract should also clearly state exactly how much you will pay the property management company and how often.