Hiring a property management company can be a big decision to make and at first can seem overwhelming to determine who you should trust with your investment properties. The decision does not have to be overwhelming, if you consider our three do’s and a don’t for hiring property management companies. Follow our handy tips to find the right property management company for you.
Do: Hire a property management company with an in-house maintenance staff. Property management companies with a maintenance staff sometimes cost a little more, but the cost savings on maintenance related issues will always make up for that slight premium. On top of the cost savings, property management companies with a full maintenance staff in house will typically be able to respond faster to maintenance emergencies and issues as they arise.
Do: Hire a property management company that specializes in the type of property you are renting. If you are hiring a property management company for residential rentals, hiring a company that only handles residential property management is a great way to ensure that your tenants receive the highest quality property management. On top of the quality of service, companies that focus on residential property management will be better versed on residential landlord tenant rules, laws, and restrictions. Finally, residential property management companies are typically more responsive to the small maintenance needs that typically arise in residential properties that are not as common in commercial real estate.
Do: Fully consider and read over the contract and terms of any agreement. This is best practice in almost any area, but is crucial for property management. Key an eye out for the details of the agreement; such as in what situations does the management company charge fees (some property management companies charge even if the unit is vacant), when is the monthly disbursement, what is the cancellation policy and fees, and keep an eye on what exactly the management company says they will do in return. Never sign any agreement, without asking any questions you may have and fully understanding the full agreement terms and conditions.
Don’t: Only consider the lowest price property management company. Chicago property management companies typically charge a percentage or flat amount monthly per unit, but some companies include many items with that fee while others nickel and dime for other services. While getting the best price sounds like common sense, make sure the property management company you hire is providing the best value for what you and your investment properties need. Some companies charge very little in fees, but in return provide almost no management service while others do the opposite. Finding the company that you feel comfortable with and have a fee structure you could live with and feel that your properties will be taken care of is key. While price is important, make sure you that the price does not leave you with heavy fees for other services or with zero management of your properties.
For more information on property management services in Chicago, contact us today or give us a call at 630-324-4267.
