So you have purchased a rental property and have decided, after careful consideration of cost and benefit, to get the services of a property management company to take care of it. So what can be expected from a perfect one? Most property management companies are sure to look after the filling up of vacancies, collecting of rent and keeping the paper work intact, but not all of them are equal. Here are some of the things that you should check about a property management company before you hire their services.
Marketing the property is an essential part of the role of a property management company as they have to make sure that prospective clients are at least aware that there is a rental available.
It is the duty of every property management company to keep their clients well informed about the status of the house, but few companies do it unless asked. There are a few managers who regularly send reports and statements to their clients including expenses, incomes and detailed sheets on any other notable happenings.
There are no fixed rates for property management companies, but it also makes no sense to charge an excessive amount. The normal rates are between 8% and 10% of the monthly rent on the house.
Not every property management company does maintenance work as part of the package, but some do and keep the house marketable. Houses that see regular repairs always fetch a slightly higher rent than those that don’t.
These are a few things you will want to ask your property management company about and it will help you gauge whether or not you want to hire them. The services mentioned may not be standard practice for all companies, but are more like value added services and so should not be used as a yardstick measure.