Property owners often get fed up with all the ins and outs of property management, which is why so many of these companies exist. There’s a competitive market out there, which is good for you since it means you’ll have lots of different options. However, some property management companies are better than others. When you’re deciding on a property management company in Los Angeles, keep these four simple essentials in mind.
1. A Proven Track Record
The key word here is “proven.” The first question you should ask isn’t for word of mouth references, but actual hard facts, such as how many properties the company is actually managing as suggested by Bigger Pockets. You should also hop online and check out reviews on independent sites, as well as their stats. Numbers they’ll be proud of might include customer satisfaction poll results, money saved on things like utilities or repairs, and tenants screening. Reliable companies are looking to champion their achievements to attract new customers. If you don’t see any of that, then there’s a problem.
2. Client Communication
Multifamily Executive recommends that the first thing any property management company should do is understand the long-term plan of the property owner. Your property management company should know exactly what your goals are, and be clear on expectations for services and rates of return. You should also fully understand what types of services are covered, since every company varies. Some offer round the clock tenant support, whereas others only handle certain elements of the transaction for you. The bottom line is that you shouldn’t trust a property management company with your real estate if you can’t communicate effectively.
3. You’re Given a Clear Quote of Cost
Many landlords aren’t interested in being hands-on, but that will cost you. This is what a property management company is paid to do. However, when you’re considering which one to choose, Nolo warns that you should know how much it’s going to cost. A reputable company will be able to give you a quote upfront, and knowing how much it’ll cost you to utilize their services should be a transparent and simple process. A good way to start is by going to the website of the property company you’re interested in and checking for the contact information that mentions quotes. If there isn’t any such information, you may want to move on and keep looking.
4. Understand What They Do
If you’re going to pay a company to manage your property, you need to understand what kind of services they offer. The bare bones offerings of a legitimate property management company will be accessible services for tenants when emergency repairs or other issues arise, remodeling services, and negotiating vendor contracts and costs. Property management isn’t only about effective communication with tenants and satisfaction, but also helping to save you money and make your life easier. A good company will do all of this and more.
It might be tempting to be a hands-on landlord and try to do all of this yourself. However, if you own many units or a large piece of real estate that’s too overwhelming to manage alone, it’s a good time to look for a property management company. Just remember these simple tips, and you’ll be on your way to finding the best companies on the market.