We have been talking about the things to look for in a property management company, and today we are sharing four specific things you want to find before you begin working with a professional manager.
All property management companies collect rent and make disbursements. There is no mystery to that. You need to determine what makes a company unique. Ask how they do business and why. Value propositions might be a company’s reputation, the length of time they have been in the industry or their local leadership and expertise in the market. They might have programs that speak to what you are looking for and they might have a plan to save you money. Some companies have innovative technology that provides efficient, accurate work. Ask what makes the company unique and why you should do business with them. Every property management company should be able to answer that quickly.
No single property manager can manage all types of properties in southern California. There are lots of different properties and it’s a huge area. For example, at Progressive Property Management, we don’t manage HOAs. Lots of other companies do a great job with them, but we don’t. HOAs require a different set of skills and technology and procedures. So when you’re talking to a company, ask what their core competencies are. Find out what type of property they specialize in managing and how many of them are currently under contract. Location is also important. Generally, you want your property manager’s physical location to be within a 30 minute drive to your property. It shouldn’t take two hours for your manager to get there if the tenants have a problem.
Pay attention to the amount of time it takes a company to get back to you. That response time is not going to get better after you sign a contract. Your property manager needs to be responsive to your questions. They should take time to go through the contract and the lease and their procedures. Once you sign the contract, you’re committed usually for six months or longer. How they respond on day one indicates how they will respond on day 100.
Your property management company must be able to tell you about their business model and they should be easy to work with. Everything you need to know about the contract and fee structure should be presented and the way they do business should be fair and with no surprises. We believe you should be able to cancel your contract easily and without penalty, if necessary. We know two or three year contracts exist in the property management field, and owners can’t get out of those agreements without paying for it. Make sure you choose a company that’s transparent about how they do business.
If you have any questions while you’re seeking a great property management company for your rental home, contact us at Progressive Property Management.