Qualities Of A Good Property Management Company

Many successful real estate investors rely on property management companies to manage their investments. However, not all companies are created equal. Hiring a bad property manager can actually hurt an investor’s profit. With that said, here are some qualities that separate the good companies from the bad companies.

Works on the Property Owners’ Behalf
A good property management company puts their own self-interests aside and makes decisions based on the property owners’ needs. For investment properties, owners’ want to either generate passive incomes or watch their properties increase in value. A good company will protect the investment by immediately dealing with repair and maintenance issues. A quality management firm will recommend modifications and upgrades that will increase property values, and it will provide thorough tenant screening to guarantee timely rent payments.

Collecting Rent
This is the biggest problem many investors face when they maintain their properties on their own. A good property management company can eliminate the hassle of trying to collect rent from tenants who are constantly late. The company will work to maintain consistent monthly cash flows and start the eviction process for those tenants who do not pay rent.

Vacancy Rates
Vacant units equal lost money. Quality property management companies work hard to prevent properties from sitting empty for too long. Shorter vacancy cycles are the catalyst to passive income, and good companies will identify why a property has units sitting vacant. Whether it is repairing or renovating a property or determining the best rental rates for that particular market, a reputable management company will make recommendations that are proven to shorten vacancy rates.

Marketing
A good property management company can market a property effectively. Successful managers understand their rental markets and know how to target specific renters. Therefore, they know where to advertise and what to say when they do place an ad. Good companies also understand the power of the internet and the digital age. An effective marketing strategy must consist of an online presence, and quality property managers know how, when and where to execute a digital strategy.

A quality company also assists property owners with taxes, insurance and any other financial issues that can hurt an investor’s bottom line. More freedom, less stress and more time are what a good management company delivers to its clients.