Hiring a property management company can make your life infinitely more manageable when it comes to owning multiple rental properties. You can relax knowing that the experts have your back. That is unless you choose the wrong management company.
Then you have a potentially expensive nightmare on your hands. A poor management company will leave you in the dark, charge hidden fees, and mismanage your property. What you’ll be left with are disappointing rental profits and mounting expenses.
You can prevent this by knowing what red flags to look out for and thoroughly screening a company before hiring them.
Poor Communication
Do you speak with a different person every time you call your management company? Then each person gives you a different answer. You end up with more questions than answers by the time you’re done.
This poor communication can be prevented by asking about the staff you’ll be dealing with. Confirm a primary contact and their stability with that company. Ask these questions to determine a company’s communication level and style:
- How do I get ahold of someone if I need to? (call, email, text)
- How will you update me on my property? (call, email, text)
- What items will you provide me an update about? (new tenant, rent not paid, work orders)
Another problem with poor communication is the lack of notice. You expect to get one payment total, but what shows up in your bank account is much lower. While the deducted fees could be legitimate, no one likes a surprise of less money.
We address the issue of poor communication by offering prospective clients a clear outline of what they can expect from our services. Then current clients have a convenient online portal to manage their properties. We are also available for contact through email and phone.
Below Market Rents
Determining the right rental rate for your property is key to making your rental properties a profitable investment. If your management company prices your property too low, you’ll fail to maximize your investment. The low rent may also attract the wrong type of rental, which can end up costing you in evictions or repairs.
Periodically check your management company’s findings by doing your own market research. We make this process easy for our clients by providing them with a rental analysis. Each analysis includes an optimized rental value for the property, detailed insight into the current market conditions, and a predicted monthly cashflow.
Hidden Fees
There are several ways a property management company makes money. Be careful of a company that focuses more on their menu of services and not on the fees associated with each service. The company you choose should be able to answer these questions:
- What are your fees for management for a new lease and lease renewal?
- What are your ancillary services, and are they optional?
- What are the other fees I can expect during the management of my property?
We address these questions by providing a clear outline of our different levels of service. We outline the leasing fee, management fee, and all extra fees associated with service. This way, you know exactly what you agree to when you hire us.
Avoid the Problems and Work with the Professionals
You can avoid all of these problems by thoroughly researching and vetting prospective property management companies. Speak with several different companies to get a feel for their communication and transparency. This will help you identify the right fit for you and your property.
Here at PMI North Texas, we pride ourselves in providing our clients with exceptional service through our Ready, Select, Protect, and Renew approach.
Contact our office today and let us help you manage your rental property.
