Single-family homes continue to be a significant investment and the areas surrounding the Phoenix area are especially attractive investment opportunities. Flipping a house is one way to earn income, but moving toward renting is a whole different path, and when you take that route you need to consider how you’ll manage the property or properties seriously. Finding the right property management company can be a daunting task, but with these tips, it should make things easier for you to get a handle on.
1. Make sure the company knows the local market
There’s nothing more frustrating than working with a company that has no clue about your market or location. They don’t cater their decisions toward what the local market and economy look like and do a poor job in using other people’s data in making their decisions. Property management is no different, and it requires knowing the local market to secure the best deals and best contracting opportunities. It also requires that the company know enough about the local market to be able to promote it, not from the 50,000-foot level but the street level and it takes a local to know the best things about the locale.
2. Planning with the property manager
The property management company should have a manager who will set up a meeting and go over all the details with you. This can’t be something done remotely; it needs to be on site and in person. The game plan needs to be discussed and agreed to by all parties. Budgets, goals and long-term vision need to be explained and detailed, and a plan needs to be put in place to achieve these. Going into this without a plan is like wandering through the desert with a blindfold.
3. Make sure your property manager provides excellent customer service
Customer perception is a huge part of any business, so why shouldn’t it be with your property management company? When you select a property management company, you’re counting on someone being there to answer the phone or respond to issues quickly and be able to take care of things 24×7. With all the available communication channels today, there’s entirely no reason why a property management company would not be able to handle 24×7 communication.
4. A property management company is responsible for accounting
Would you trust an accountant who kept loose scraps of paper and notes scattered about his office? How could you possibly trust a property management company who doesn’t show up with reliable accounting and bookkeeping processes and procedures firmly in place? Demand that you see how they manage their expenses and accounting. A walk-through of their process is not asking too much.
5. A property management company should be praised by its tenants
In World War II, the allied POW camps went out of their way to the outside world to appear as if the prisoners were content and well taken care of, going as far as pushing out certain prisoners to provide a grand image. You need to make sure your property management company is honestly taking care of its tenants. You should inquire with tenants and look through the turnover rates. Happy tenants are tenants that will continue to provide you income.