Many property owners choose to hire a property management to take care of their rental properties, especially if they live far away from the property or don’t have the time to take care of it themselves. Property management companies perform tasks like collecting rent from tenants, showing your place to prospects, and should the occasion dictate, pursuing evictions. While screening tenants, management companies check the credit history of the prospects and verify their background information to ensure that they can meet the requirements of the rental agreement. Some property management companies also takes care of relevant legal and tax issues.
Phoenix is the largest city in the southwestern region of United States, and with 1.5 million residents it is the most populated capital city in the country.
Property Management Companies thrive here as the market is very active, and because they help property owners save time, effort and money by handling the rentals for them. One way to look at these services is as a small investment that can maximize the returns on your property.
While it is important and helpful to hire a property manager, you should not rush into a decision. The wrong choice could cause headaches—and even financial losses if the management is inept. The following questions can help you evaluate property management companies:
1. How Much Do They Charge
Ask the management company for a quote and compare it with the others. The typical management fee ranges from 4% of the gross rent for large buildings to up to 12 % of the rent for family homes.
2. What Does Their Portfolio Consist Of
Ask the company for references and examples of other properties they are maintaining. Taking a look at these properties will give you a good idea of how you can expect your property to be maintained.
3. Who will be in charge of your property?
Ask the company for details about the person who will be in charge of your property. Ideally, you want a person with good experience and interpersonal skills to be handling your property.
4. Are There Hidden Costs?
Property management consists of a variety of tasks. Ask the management companies for a list of tasks that are covered by their standard fee and a quote for the prices of tasks that aren’t covered by their fee.
5. How Are Fees Managed?
Agree on the timeframe for fee collection and find out how the management company will bill you.
6. How Will They Market Your Property?
If you are interested in letting your property out on rent, find out how the management company will market your property and find suitable tenants.
7. What is the Usual Property Prep Time?
You need to know how much time will be required to rent the property out again once your property will be vacated by tenants.
8. Authorization for Tasks
There will be tasks associated with the management of your property that you might not want done without your permission. Discuss these issues and identify the ones which will require authorization.
9. Hours of Operation
Find out the working hours of the management companies and compare it with the number of properties they manage and their staff size. This will give you a good idea whether they can devote adequate time to managing your property.
10. How Are Accounting Reports Managed?
Find out how and when the management company will send accounting and billing reports to you.
Depending on the type of property you own, your might have to ask more questions to determine whether a particular property management company is the right one to manage your property. Asking questions upfront and resolving all your doubts before entering into a contract will increase the chances of a better working relationship with the management company, saving you time and money down the road.
Arizona Property Management – Paielli Realty (Phoenixpropertymgmt.com) offers professional property management services as part of their full line of real estate services for buyers, renters and existing property owners.