Protecting your investment property is the most important step after you acquire it. You want to manage every aspect well. Done right, the building keeps its integrity, grows in value, and returns a profit. Often, though, that means bringing in extra help to run the day-to-day operations.
When the time comes to hire a property management company, make sure they have your best interests in mind. Ask the right questions, and understand the risks before you commit. Here are the qualities we recommend looking for when hiring a property manager.
Credentials
Professional property managers take their training seriously. So look for managers who back up their expertise with proper licensing and credentials. First, verify that their licenses are current. Then ask about the certifications they hold. Several trade organizations offer rigorous training and completion certificates. For example, the Institute of Real Estate Management and CCIM for Commercial Investments both run respected programs. You should also confirm they hold an up-to-date brokerage license. Most states require it for third-party property managers. Usually, you can find this on your state’s real estate commission website.
Specialized Experience
Keeping up with changes in the legal system can be time-consuming and confusing. A good property manager, however, stays on top of local, state, and federal laws. As a result, they help protect your property against risk. In addition, look for someone who has managed similar properties. That way, they can meet your commercial or residential needs.
References
These days, reviews shape how we choose products and services. Property management is no different. So check any reviews they’ve earned online, or simply ask for references directly. Trustworthiness matters in a client-manager partnership. Before you commit, make sure the person or company has relationships that vouch for a strong reputation.
Insurance
Besides the legal complexities, confirm that the property manager carries the right insurance. The agreement should list general liability, fidelity and crime coverage, property insurance, and anything else you need. If anything is unclear, ask them to explain exactly what each policy protects.
Service Agreement
Finally, review the terms of the agreement closely. What does the tenant lease look like? How does the screening process work? Check the details on rent collection, contract conditions and length, the services they provide, and the fees. Also, make sure you understand what they expect from you, the owner, and how you’ll meet those responsibilities.
Take Your Time When Hiring a Property Manager
Hiring a property manager is one of the biggest decisions you’ll make as an owner. So take your time and get it right. Weigh each quality above – credentials, experience, references, insurance, and a clear service agreement. Then ask plenty of questions before you sign. The right partner protects your investment and gives you confidence in its day-to-day operations.
To see the credentials and experience our own team brings, visit our About page. Or reach out to talk through your property’s needs.