Looking For a Roseville Property Management Company?
We know this isn’t an easy decision. When it comes to hiring a property manager in Roseville, Citrus Heights, Fair Oaks, Sacramento, or pretty much anywhere else, there are several factors to take into consideration. Doing so will ensure that you hire the right property manager thus ensuring better returns from your properties. For the purposes of our discussion here, let’s assume your property and the management company you are considering are both located in Roseville.
1. Number of Units Under Their Management
You should first determine the number of units under their management. Once you have determined their portfolio, you should then proceed to establish the number of staff employed to manage the respective units. According to experts in the property management industry, a fully trained employee with the right expertise and tools can manage an average of seventy-five units. However, this is only possible if the accounting function is not part of the work. Therefore, if you want to hire a certain property management company with 100 properties under their care, and they have no employees, then your properties may not be given the attention they deserve.
2. Personal Properties Under Their Management
The second thing you should determine is whether the management company you want to qualify has their own rental properties. Some people would argue that they would prefer hiring a property manager who owns properties, since they understand the industry from both perspectives. However, the truth of the matter is, some form of internal competition would occur or conflicting interests. For example, if a client comes looking for a vacant house, the property manager will tend to fill their properties first, before filling yours.
3. Frequency of Inspections by the Property Manager
Managing tenants and properties requires visiting those premises regularly. When you are discussing your terms with your property manager, you should establish the number of times that they will be conducting formal inspections. Some managers tend to be very understanding and accommodating, and they will agree to be conducting formal inspections on your properties more often than the required one time per year. However, others will not agree to this condition. In any case, most companies will charge to conduct the annual inspections and if you want your properties fully inspected more often, they will charge additional fees for that extra attention. Typically, exterior “drive by” inspections, usually conducted one time per month, is included in the monthly fee. It’s important to perform regular inspections to avoid legal implications arising from negligence to the property.
4. Good Communication
Communication is a key aspect of a good property management firm. If the property manager keeps on cutting you short when you are discussing the arrangement, then you should stay away from such companies or individuals. Your issues and questions concerning your properties will not be handled with the professionalism that they deserve. A good property manager understands that the client is always the king, and they would do anything to ensure that the client is always satisfied.
5. Use of Automated Systems
In today’s digital world, the property market has not been left behind. There are numerous automated tenant management systems today which can be quite confusing, in terms of choice. Your preferred Roseville property manager should be using a quality automated system. Additionally, they should display their expertise in handling the equipment. They should be able to generate output reports using this system as part of their expertise. If the property manager is still relying on traditional methods of tenant management, then you might not realize the profits that you deserve.
6. Fees Charged
When it comes to charges, some property managers charge a percentage of the rent, as a fee for managing your properties, usually this is 5% – 10%. Other companies change a flat fee. You should establish the charges upfront, before entering into any agreement. You also ought to know what specific duties will be performed by the manager and at what frequency. Some property managers demand to be paid the management fee whether the properties are occupied or not. Stay away from such property managers, because you might easily find yourself counting losses.
7. Maintenance Costs
Another important tip to consider when hiring a property manager is repairs and maintenance issues will be handled. Typically, the owner allows the property manager to spend a certain amount of the rent, without seeking prior approval, to respond to repair calls. It is advisable not to let that amount go beyond $150.00 – $250.00. On the other hand, some property management firms add a 10% fee on top of their normal charges to coordinate any extensive repairs (as in the case of a tenant turnover). Of course, you are entitled to received copies of all invoices paid.
8. Good Work Relations
Going back to the software issue mentioned on item number five, most property managers will provide you with reports, before the fifteenth of each month. Additionally your rental income, less any expenses, should also be paid at that time. If you fail to collect your rent by then, you should visit their offices, and have the issue cleared up right away, before it becomes a recurring problem.
The above list is not exclusive. There are many more tips that can be added to make the process of hiring a Roseville property management firm run smoothly. If you have additional ones, feel free to list them below.