Finding affordable property management in Clermont is not easy. You can get confused by the many property management companies and the multiple services they provide. It can get difficult to shortlist a reliable property manager when you are presented with several options. Below are tips on how to choose a good property manager for your investment property:
Get Referrals from Friends and Family
One of the simplest ways to find a reliable property manager is to ask friends and family members for referrals. See if someone in your circle has worked with a property manager and can share the details with you. Other sources of property manager referrals include:
- Real estate attorneys
- Fellow real estate investors
- Real estate agents and brokers
- Mortgage brokers
- HVAC and landscaping contractors
- Escrow companies
Review Property Managers Online
You can search for property managers online and go through the results that come up. Check their websites and go through their reviews and testimonials before shortlisting anyone. You can also check Yelp and Better Business Bureau ratings and Craigslist advertisements.
Property managers in most states should have a real estate license and a general business license. You can check the Department of Real Estate and Secretary of State offices to verify if the licenses are active and in good standing.
Negotiate Terms of Contract
Speak to the potential property manager about agreements and contracts, and find out what their process is. Ask to see their owner/property manager agreement and check for the following information:
- Check if the contract beginning and end dates are mentioned
- See if information about the primary contact is listed in the agreement
- Check if the managers’ service charges are mentioned. Ensure the monthly fee and the leasing fee for finding a tenant are documented in the agreement.
- Check if there is an early termination clause in the agreement. You should be able to end the professional relationship if you are not happy with the property manager’s services.
- See if there is an auto-renewal clause.
- Check if the process of repairs and maintenance is mentioned in the contract. For instance, do they outsource repairs or do it on their own and charge a separate fee?
- See if the date of receiving the tenant’s rent each month is mentioned in the agreement
- Find out who will be responsible for keeping the tenant’s security deposit
- Ask how the property manager will deal with a delinquent tenant and how they will evict a tenant from your property.
- See if there is a property manager liability clause in the agreement in the case of property damage
Ask How the Manager Will Handle Vacancies and Advertising
One of the property manager’s primary tasks is to find you a good tenant. Ask the potential property manager how they plan to advertise your property and fill vacancies. You can ask them the following questions:
- Where do they advertise vacant homes?
- Do they advertise on websites, in newspapers, and nearby universities?
- How long will it take, on average, to place a tenant?
- What type of signs will they put in front of the property?
A property management company like Orlando REO Professionals will actively market your property through aggressive e-marketing strategies and traditional MLS signs. They will work hard to get your property constant exposure to generate potential renters.
Ask for References
Ask the property manager you are speaking to for references of old clients. A good property manager will typically not refuse to show you their past work or provide referrals of other clients. You can speak to their current clients that own a property similar to yours to see how the manager has handled the property. You can also check different properties managed by the property manager to see how they are maintained.
Factors to Consider When Choosing a Property Manager
Choosing the right property manager for your investment property type is critical to keeping the cash flow steady. You should consider several factors while choosing a good property manager. Key factors include:
- How strong is the property manager’s communication
- How frequently are they ready to communicate with you
- How professionally and fast do they answer your queries
- Do they have local experience with your specific property type
- How is their track record at filling vacancies at a fair market price
- Do they know basic accounting practices
- What software and technologies do they use to streamline and automate the property management process
- How does their fee structure compare to other potential property managers in the area?
Choosing the right property manager is critical to your investment’s success. The above tips will help you shortlist potential property managers efficiently and select the one that fits your requirements.