There are several reasons you may hire a property management firm. One reason is that you live abroad and cannot regularly take care of all the affairs related to your property. Hence, you need someone to take care of them in your absence. But hiring a property management firm is not a simple decision. After all, it is your hard work and investment we are talking about. There are several things you need to consider before hiring a firm. Here are five things you should consider before hiring a property management firm.
When you are handing over your asset to someone to manage, you cannot blindly trust them. You should know how reputed the company is. You should know whether the company can be trusted. Ask the following few questions about the company. How long have they been in business? How many properties have they managed in the past? How many happy clients do they have? Has there ever been trust issues or complaints about their company? And so on.
Never be afraid to ask the potential property management firm or manager about their experience working in the local area. The firm may have talent and skilled people. But if they are new to the area and have no previous experience managing properties there, they may not have the right connections to handle the necessary repairs and maintenance quickly or the regulations in the particular city.
The property manager may be skilled and experienced. But how can you work with them if you cannot contact them or coordinate with them when you need them? Problems and concerns are not necessarily restricted to business hours. Hence, it is essential that you can reach out to them at least most of the time, if not all the time.
There is a saying that “you get what you pay for.” And this is true in most cases. While getting a great deal is good, cost should not be the sole focus when looking for a property manager. You should also look at the service offerings to identify the value the partnership may provide. A property management firm should always be able to provide high-quality service and add value for the fee they charge. In summary, don’t just look at the fee — examine the services’ total value.
Every property manager charges a fee for their services. But how they structure it can vary. While some charge a flat monthly rate, others may charge a percentage. And then, the initial fees may seem low sometimes. But by the time you clear it, hidden charges may be added. Hence, look for how the company charges the fees and consider the appropriate structure for you.
Hiring a property management firm is a huge responsibility. Proper research and asking the right questions can help you avoid costly mistakes when hiring a property management company.