Posted on: 30 October 2017
If you have a home that you're interested in renting out as a landlord, you might also be toying with the idea of hiring a property management company to assist you. After all, as a landlord, you already have enough responsibilities to worry about. A property management company will be able to assist you with everything from collecting rent to maintaining your rental home's landscaping. Before you hire a company for the job, though, there are some mistakes you'll want to avoid.
Overlooking Services Needed
First of all, make sure you have a solid understanding of the exact property management services you'll need for your rental home. Most property management companies offer different tiers or levels of service based on your needs. For example, aside from just collecting rent and handling landscaping, what will you do if a tenant has a maintenance issue? Unless you want to be stuck finding a handyman or repair man yourself, you might also want to hire a property management service that includes 24/7 maintenance.
Not Asking About Eviction Procedures
While you certainly hope you'll never be in a position where you need to evict a tenant from your rental home, it's important to be prepared for the worst. Make sure to ask your property management company about the procedures they'll follow if eviction becomes necessary. What aspects of the process will they handle and what will you need to take care of yourself?
Focusing Too Much on Price
Of course you don't want to spend more than you need to on property management services. At the same time, property management is one of those services where you truly get what you pay for. Rather than focusing too much on price, carefully consider the value of the services you're receiving. It may be worth it to spend a little extra on a company that's going to go above and beyond not just for you, but for your tenants.
Overlooking the Company's Renewal Rate
Keeping long-term tenants saves you from lost income and helps you avoid the hassle of finding new tenants to fill a vacant unit, so be sure to ask a potential property management company about their renewal rate for tenant leases. The higher, the better!
By avoiding these mistakes as you shop around for a property management company, you'll eventually be able to make a confident and smart choice for your rental home.Share