Hiring a property management company can be an ideal solution to unburden the stresses of rental property ownership. Many people find the responsibilities of being a landlord arduous and time-consuming, leaving them little time for other commitments.
They find that hiring a property manager manages the day-to-day minutiae of rental homeownership, allowing them to grow their business or pursue a full-time career outside of real estate.
If you are thinking about hiring a property manager, consider several key factors when choosing the right one. Here are some vital points that should form part of your property management company choice:
Your personal rental business situation
Qualified Atlanta property managers say that most clients own multiple rental properties or live a significant distance from their rental home. Local companies like Everest, Once Source Atlanta Property Management, and Aramis Realty offer a variety of services, as do nationwide operators like BH Cos. and the Lincoln Property Co. Evernest has an established reputation in Atlanta, with a string of satisfied customers, happy that they entrusted their rental homes to this organization. Its qualified professionals ensure that the rental process runs smoothly, working in landlords’ and tenants’ interests. Evernest also operates in several other states, including Colorado, Michigan, Mississippi, and Arkansas.
Renting a property to tenants when you live far away is a challenge. You cannot oversee the day-to-day operations, including doing inspections, managing repairs and maintenance, or handling tenant relationships. Owning multiple properties is also a complicated situation as you will have little time for anything else when you try and manage everything solo. A lack of experience might motivate you to hire a property manager as they have the expertise to keep things running smoothly, while your shortcomings might prove to be a hindrance.
As intermediaries, property managers charge a fee for their services. Most companies typically charge a flat percentage fee of the monthly rental price. The ratio of that percentage depends on a company’s policies and is usually aligned with how many services it offers. Not all property managers provide a full suite of services, with some only managing a few processes, leaving the remaining responsibility in the landlord’s hands.
The average percentage that a property manager charges is 4% to 10%, depending on the aforementioned factors. A landlord should weigh the percentage charged against the potential benefits hiring a property manager provides. A cost-benefit analysis should guide your decision. Shop around for property managers to compare prices and services before deciding on one. Do an in-depth interview with any potential property managers and prepare a list of questions, including some related to their fees and what you can expect in return.
Surrendering control of your rental property, often your investment nest egg that will provide for your retirement is easier said than done. Property managers take over many of a landlord’s responsibilities, and many rental property owners struggle with the notion of delegating that much responsibility for such a valuable asset to a virtual stranger. If something goes wrong, a landlord typically remains accountable, even if a mistake was on their property manager’s part.
For this reason, extensive interviews with potential property managers are essential. You should meet with as many potential agents as possible, searching for one who inspires your trust and confidence. Handing over control and accepting the possibility of liability for errors beyond your control is not something that you should undertake lightly. Do your homework and find someone you feel comfortable enough with to take that risk.
Some rental property owners want to surrender complete control over their rental home to a property manager. In contrast, others wish to retain some control and play a continued role in the day-to-day operations. Your preference in this regard will guide you when searching for the right property agent.
Most property management companies do like interference from landlords in carrying out their duties. Their contracts stipulate definitive boundaries that property owners cannot cross. If you try and breach the contract’s conditions, a property agent could choose to terminate it. Understand the contract’s terms to avoid overstepping the mark.
When choosing a property management company, investigate its reputation. Established companies with a loyal client base are more reliable than those with mixed reviews. Ask the company for client testimonials during the interview process. View a company that is reluctant to share its success stories with a degree of suspicion as it might be attempting to hide something. Call any clients the company offers as referrals to gain some insight into its operations.
Speak to other landlords in your area about which property management companies they use and listen carefully when they explain their manager’s strengths and shortcomings. Look for online reviews about each company you place on an interview shortlist and interrogate the issues raised in those reviews when speaking to a company agent.