Property management causes headaches for all of us. Knowing how to identify a great property management company is possibly 75% of creating a great rental property business. A few hints about how to find the right company can be a big help.
A good approach to many requirements in life is that if everyone is doing something one way and you are doing it another the odds are quite high that you haven’t discovered the one true best way to do the work. The same is true for property management. A great first step is see who is the popular solution in your area. If everyone else is using them the odds are strong that you can’t go too far wrong taking advantage of this solution.
Second, even if a company is a popular solution. Visit a number of the properties using the management company. By visit, start with phone calls and see how the management company treats you. Next, arrange to see them at a property or properties. Check their references (this should include owners and vendors they work with). Take detailed notes. Try to learn as much about their process as possible. Further, repeat this process on the top two or three choices in the market.
Third, keep your eyes open and look at the possibility that certain management companies have “specialties”. Often, different companies have unique approaches to different issues. This fact may identify one company as a better solution than another based on the type of project being managed.
Fourth, take a close look at your project sorting through the due diligence information, market studies, size, type of construction, etc. Determine what if any special needs you may have and take a closer look at these requirements to see if this points towards specific needs and specific management companies.
Fifth, look at the property management companies to determine if there are local managers who appear stronger or weaker. Ensure that your project gets the management strength a good operation will need.
Finally, consider whether you should supplement the management company with services or support to achieve your operational goals. Often times, the key to a successful management arrangement is recognizing that no solution tends to be total. Recognizing this and determining if you are comfortable living with these issues or if you need to fill these needs in other ways can help avoid a lot of aggravation.
Remember, when you are setting up management, choices that assure a smooth running relationship that meets your expectations prevents needless discussion, saves precious time, and allow you to focus on your real priorities. Consider the ideas above to achieve these goals.