How to choose a property management company

1. Ask Around

Word of mouth is often the most reliable way of finding a professional in any sector; property management is no exception. Talk to other property owners, or real estate agents in your area and you may find someone trustworthy straight away. Make up a list of the property managers or companies that they are using, or have used in the past. Ask if they have had any particular problems, or what they have been happy with.

Asking for referrals from different sources will cancel out any bias.

2. Do your own research

The internet makes it simple to find a property management company. Before you make an appointment try to find online reviews of the company. The Better Business Bureau rates companies and there you can find out if there have been any complaints against them.

3. Check out what they are doing now

Checking out their current ads will help you to evaluate if they are a good fit for your property. Are the properties of a similar type to yours? It is also worth looking at where they ads in a variety of places. Drive around and look at some of the properties they manage to see if they seem well looked after. If possible, speak to the current tenants to get their perspective.

4. Check if they are licenced

Different states have different requirements. Contact your state’s Real Estate Commission, either online or by telephone. You can find out if the company has up to date licences.

5. Examine the contract

The contract defines both your responsibilities and that of the manager. The services provided section is an important part of the agreement. Make sure that you understand what extra fees can be charged, compliance clauses and reasons for cancellation by either party.

Most importantly, make sure the contract matches what was said to you when you interviewed the company.