SELECTING A PROPERTY MANAGEMENT COMPANY
Selecting a property management company can be one of the most confusing, but important decisions investors will ever make.
When investors contact Tico Realty Group, in search for a property management company, the top questions they ask are:
- What are the costs to investors?
- How are renters found for properties?
- How are investors’ property interests protected?
Some property management companies look very expensive while others seem unbelievably cheap. With the worst companies, you almost need a CPA to figure out what the real costs are. So how do you read past the sales hype?
The Internet, as powerful as it is, is only effective when experience is combined to know what works. For example, posting ads on Craigslist and placing yard signs are not enough.
Posting rental properties on MLS (Multiple Listing Service) is also, not enough. Commissions paid to real estate agents for rental properties are relatively small, so most agents do not make the effort to show the properties effectively.
Any agent can place signs in yards and list properties on MLS, but it takes putting properties on the right websites, placing the right ads, using personal and professional networks, and implementing a proven marketing strategy to find qualified tenants.
The ideal property management company needs to be able to help you get your property in “rent-ready” condition. This means giving feedback on what your home(s) needs are, finding reputable vendors, scheduling and performing repairs, and getting you the best work for the lowest price possible.
There are only two variables you can change with any given property: rental price and condition. If the property condition isn’t up to par, then the rental pricing needs to be adjusted. If you are priced too high or too low, you should be able to trust your property manager to tell you.
We at Tico Realty Group hope we have given you enough information to begin asking questions about selecting a property management firm to manage your homes.