5 Expert Tips on How to Choose an Excellent Property Manager
Your rental property is an asset that needs to be professionally managed and managed pro-actively in order to be properly protected. Unless, of course, she’s a real portfolio manager, you wouldn’t allow your neighbor’s acquaintance handle your stock account. Similar to this, your property needs a certified, knowledgeable, and accountable investment property manager.
Being a first-time landlord, selecting the ideal investment property manager might be a daunting undertaking. What credentials should you be seeking? How do you distinguish between poor managers of investment properties and those that will look out for your money like it was their own?
By thoroughly screening each of our property managers before designating them as one of our preferred partners, we at Luxia take a lot of the guesswork out of the equation for you. We’ll connect you with a nearby, recommended investment property manager and keep advocating for you to make sure everything goes as planned.
Here are five key ways to tell if an investment property manager is right for you, plus helpful questions to ask:
- Look for specialized experience
The industry of property management is complicated. An investment property manager who is knowledgeable about current local, state, and federal laws is what you desire. Additionally, you want someone who has a track record of successfully managing the numerous challenges that come with managing renters and properties.
Find a property management company that has a lot of experience with the type of investment you have. Businesses that specialise in managing commercial properties, for instance, might not be prepared to handle residential properties effectively.
- Verify professional licenses and certifications
A real estate licence may be all that is needed to manage a property in some places, and some states don’t require any kind of licence at all. Proper licensure and professional certificates should be able to support the technical skills of competent property managers and management businesses. To find out if a property manager has a valid real estate broker’s licence, contact the real estate commission in your state. Any certificates and professional affiliations are advantageous.
- Check reviews and references
Nowadays, it almost goes without saying, but check out a property management company’s Yelp, Google, and Facebook ratings before scheduling a meeting with them. As is always the case with these websites, keep in mind that some reviews (such as an evicted renter) can have a vendetta that has nothing to do with the calibre of the service performed by the business. However, when comparing several businesses, review websites might be an excellent first resource.
It’s also a good idea to look up any complaints or glowing recommendations with more established sources, such the Better Business Bureau and Chamber of Commerce.
- Examine the property management agreement
The property management agreement defines the working relationship between you and the property manager as well as the duties and obligations of the management team. Given the importance of the contract, it is your responsibility to thoroughly study it and make any required changes before agreeing to it. Verify that it has what you are looking for and that there are no unfavourable provisions.
- Make sure they have the appropriate insurance
When we inspect the general liability, property casualty, and errors and omissions (E&O) policies of our Luxia-preferred property managers, we make sure they are adequate. Your property management agreement can also require you to have enough insurance, which is good for your own protection. Please feel free to inquire further about the required insurance coverage with your property management company.
It’s crucial to carefully assess prospective property managers, which is why Luxia does comprehensive due diligence when screening its recommended, best-in-class property management services. We look at past portfolio performance, fee schedules, number of years in operation, and much more.
Regardless of your choice—whether you go with one of our recommended property managers or pick your own—we hope the details provided in this article will give you the peace of mind that comes from knowing your investment is in capable hands.