Important Questions to Ask a Property Management Company
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Hiring a property management company can make things much easier on you as a landlord. Property managers exist to take care of many of the details of renting out, maintaining, and financially and legally managing your property.
There are many companies to choose from, but how do you choose the right one? What information do you need from each company you are considering that will help you make your decision?
We have put together a list of qualities you should look for and questions you should ask a property management company. This will ensure that you’ll have the information you need to choose the company that is right for your needs.
Is The Property Management Company Licensed?
In Florida, all property managers must hold a real estate broker license because they collect commissions and are involved in leasing and renting property.
If any company you come across is not licensed, you should not consider hiring them. You can verify each company’s license using the License Search tool provided by the Florida Department of Business and Professional Regulation.
How Many Properties Do They Manage?
It’s generally a good sign if the company you are looking into has a range of clients. This reflects well on their success and reliability as property managers. But be sure to pay attention to the number of clients they serve and the number of employees in the company. You will not want to choose a company that is overbooked and will not be able to give your property the attention it needs.
What Is The Vacancy Vs Tenancy Ratio?
Clearly, you will want to hire a company that has a high tenancy rate and a low vacancy rate. A high tenancy rate demonstrates that they bring in good tenants who love where they live and want to stay there. A high vacancy rate is a red flag.
What Is The Screening Process For Potential Tenants?
Screening potential tenants is one of the most important duties a property management company has. The screening process should include a background check and a credit check to make sure the potential tenant has not had any evictions or bankruptcies and earns enough income to be able to pay the rent.
Stay away from any companies whose screening process violates the Fair Housing Act. Discrimination can have legal and financial repercussions.
How Do They Handle Maintenance And Repairs?
Some companies will perform maintenance and repair jobs without asking for your approval first, which will speed up the process of getting the work done. However, companies that offer this type of service may charge you a monthly deposit to cover the cost of the repairs.
Do They Inspect The Property?
Property inspections may incur a fee, but they will help the company identify minor maintenance needs before they turn into major issues.
Do They Have Insurance?
Do not hire a company that does not have any insurance. Basic insurance coverage includes policies that cover general liability, errors, and omissions.
What Are Their Monthly Fees and Miscellaneous Fees?
The monthly fees the company will charge you should be about 8-12% of collected revenues. Rate variations will depend on what services the company will take care of.
Make sure you are clear on which services are included in the monthly rate and which services will incur an extra fee.
Property Management In South Florida
Nest Home Management is a full-service property management company that offers competitive rates and years of experience. We are located in Boca Raton, Florida, and we also manage properties in Delray Beach and Boynton Beach. Contact us at (561) 705-4549 to learn more.