What to Look for in a Property Management Company

?Management is nothing more than motivating other people.? -Lee Iacocca

If you are interested in making money through rental properties you may want to consider hiring a property management firm. New investors want to believe they can do it all themselves and in the process save money. Unfortunately, they get overwhelmed quickly and their exciting investment venture turns into way more work then they expected it too. Property management companies to all the dirty tasks for you. This frees up time for you to seek out your next profitable investment. If you are interested in hiring a property manager you might want to consider the following questions.

Make sure you ask the management company how much their fees are. The national average for management fees is about 4% of the income made on large rental properties. However it can be a good deal more for single family homes, sometimes over 12%. Make sure you understand the fee, payment schedule, and services upfront before you sign a contract and hand over any money. Ask about direct withdraw from you checking account. Streamlining your business is the best way to make sure you are using your time wisely and on the right things.

Be sure to ask them what other properties they managed and the address for a couple of them. This way you drive by and see the kind of outdoor work they do. In addition, you do not a company which usually handles apartments to take care of your family residences or vice versa.

You want to ask who will actually being handling the property and speak directly with that person. It is never too soon to open the lines of communication with the people you are hiring. Make sure this person has experience and can prove it.

Ask what types of advertising do they use. Do they place ads in newspapers, online, magazine, or on the television. How much will advertising cost.

What is the typical cleaning fee for a vacancy and how much time will it take to prepare the place to be rented again.

When are they open and how can they be reached after hours.

Renting properties is a great way to make extra income. The smart and experience investors can even quit work and live entirely off real estate options. However, do you not let yourself become overwhelmed. If you feel like you can not handle your properties yourself hire a management company. This will allow more time for you to do what you want and enjoy the fruits of your labor.

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