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Renting out residential investment property in Chicago is a great way to make some extra income, but managing it yourself can really be a lot of work. That is why so many people with investment properties in Chicago decide to work with a residential property management company. Not all property management companies are the same and even subtle differences can make a huge difference. Here is what to look for in a residential property management company in Chicago:

What type of property management does the company specialize in?

Many property management companies work with both residential and commercial properties; while others specialize in just one — residential or commercial properties. When you have residential investment property your best bet is to find a property management company that specializes in working with residential properties. This specialization ensures a higher level of quality in their services and they are more aware of the problems that arise in the residential rental property market.

How many units does the property management company manage?

Property management companies that are managing very small number of units (say less than 100) typically lack the experience and expertise to manage a Chicago investment property correctly. At such low numbers this companies typically results to nickel and diming over even the smallest things.

Does the property management company have its own maintenance staff?

Some property management companies outsource all of their maintenance and this can spell trouble for any investment property. Having internal staff ensures quicker access to handling maintenance needs and the maintenance rates are typically lower in house than if the company outsources it. Make certain the management company maintenance work has a warranty to avoid paying for shoddy workmanship twice. Also consider whether or not the company has emergency after-hours maintenance. If there is a real emergency, a property management company that has emergency maintenance will be there while others will wait until the next business day.

Does the management company assist the owner by finding tenants or do they leave that to the owner to worry about?

Finding the right tenant to fill a property vacancy is one of the most challenging aspects for many owners. The best property management companies will utilize tenant screening processes to thoroughly check out any potential client and prevent problems before they arise. This screening process not only saves time, but also helps save owners the headache of deadbeat or negligent tenants.

How does the property management firm advertise their vacant units?

Some property management companies in Chicago limit themselves to one or two different websites as it is more efficient and less expensive for them. The best property management companies will utilize a large variety of websites instead of just one or two as the more interest there is in a property the higher quality of tenants the owner can select from. Additionally, property management firms may have relationships with specialized leasing agents and realtors that could further spread word on the property being available for rent.

Does the property management company offer a guarantee?

A guarantee shows that the company really believes in their service and will do what it takes to make sure that the property will not be forgotten.

To get a unit “rental ready” is not as simple as putting a coat of paint on the property and changing the locks. Getting a unit ready to rent involves a very thorough inspection process and addressing any safety and health issues that may need to be addressed. Making sure that the apartment is put back into good condition will make it easier to lease out and a well maintained apartment can ask for a higher rental price than units that are not as well taken care of.

One of the first things to check is the overall condition of the apartment. Is there evidence of any sort of water damage on the floor, ceiling, or walls? Is there any evidence of mildew or indoor smoking? Are the doors and windows in good condition? These can be more serious issues to take care of and can increase the cost of getting a unit “rental ready” exponentially. Also, it is important to check the walls for holes or significant markings that may need to be patched or otherwise repaired.

Ensuring that all of the fixtures within the apartment are clean and working properly are good next steps. Check both the kitchen and bathroom faucets to ensure that they are working as intended and not leaking. Also check the light fixtures to make sure all of the lights in the property are working and bulbs have been replaced as necessary. Make sure the window blinds are clean and in good working order. Additionally, it is important to carefully check the cabinets for loose or missing hinges and hardware.

After checking over the cabinets; open up and check each appliance to make sure they are working as intended. A broken appliance may need to be repaired, replaced, or thoroughly cleaned before the home is ready to be rented out. Appliances that are old and unreliable might hurt the property’s value in the eyes of the tenant and tenants will appreciate having more modern and energy efficient appliances. Finally, do not forget to check the smoke and carbon monoxide detectors.

Remember, the average cost to get a home rental ready is about 1-2 times the units typical monthly rent without including the cost of having the home sitting vacant; so maintaining happy tenants can save you money. Finding the right balance is the key to offering an apartment home that matches the tenant’s desires while at the same time remains a profitable investment. To learn more about our “rent ready” service and all of our Chicago property management services, contact us today.