In the United States, on average, real estate investors own or manage more than two rental properties. However, owning more than one investment property means much more work for you as a landlord.
This is when hiring a property management company can help save the day. A property manager will take over the day-to-day management of your rental units, so you can focus on more important things while earning a passive income.
It's essential, however, that you choose the right company. Otherwise, you risk losing money through bad real estate management.
So if you're a landlord searching for the ideal property management firm, keep reading. Here are four qualities you need to look out for.
1. Reasonable Management Fees
One of the primary qualities of a good property management company is whether or not they have reasonable service fees. For instance, you don't want to pay more than your profit. One of the reasons you're hiring a property manager is to increase your profits and property value.
Costs to hire a property management company will vary from firm to firm, depending on the services they offer. Companies that provide more will likely cost more than those hired to do the bare minimum.
2. Attention to Detail
Properly managing a rental property includes many tasks and processes. For example, finding and vetting tenants, setting the rent, rent collection, handling maintenance issues, etc. Many of these duties require legal paperwork, so you want the property management company you hire to have good attention to detail.
Choosing your property manager carefully reduces the risk of errors in tenant agreements and other legal paperwork. Some mistakes can end up costing you a lot of money.
Another quality you want to look for when hiring a property management company is reliability. Your property manager is responsible for the management and success of your investment properties, so you want to choose a company you know you can rely on.
There are several ways to assess the reliability of the property management companies you're considering. For example, you can check online reviews and request references who you can contact. They'll let you know if they have had reliability issues in their experience.
4. Good Communication
Finally, good communication is one of the last qualities you should look for in a property management company. As an investment property owner, you want your property manager to respond promptly to your requests and inquiries.
You know they need better communication if you wait days before they return your call. You want a company that will keep you updated on everything related to your investment properties as and when it happens.
A Property Management Company That Works For You
Finding the right property management company is essential to increase the returns on your investment rental properties. You want to ensure the company you hire will give you quality service you can depend on. Look for a property manager with good communication, reliability, and attention to detail. Finally, you want to ensure they're charging reasonable rates.
If you're in San Diego, CA, looking for a top-quality property management company to handle your properties, contact us today. We manage everything from marketing to financial reporting.