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?

Property Management Fees

Look for a company that is clear and concise on pricing. A good property management company should be able to clearly explain why a fee is in place, and how it helps them to properly manage your home. Great property management isn’t free, but a great manager is worth every penny. The cheapest company may not provide the best service.

Solid marketing practices

Abandoned and foreclosed homes have been resold mostly to investors, flooding the market with available properties for lease in every size, shape, style, neighborhood, and price. How a property management company markets your home is critical to minimize vacancies and insure profitability, and worth exploring in depth before you sign the dotted line. Tico Realty Group’s strategic marketing advantage lies within our Business Development Division whose mission is to connect with local employers and business owners to create a pipeline of qualified renters.

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.

Protecting Investor Property Interests

A true expert in property management will not only manage homes for clients, but may also have their own properties to manage.This demonstrates the property manager’s experience and dedication when they have a personal interest in property management. Most managers, employees and agents who work in property management have never owned a rental property. Have they ever had a personal vacancy, eviction, or costly repair? Have they ever had to make mortgage payments on a vacant property? Make sure to find someone who knows firsthand how to deal with these predictable issues, and ask how their own portfolio has performed.

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.

Selecting Your Property Management Company

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