Picking the right property management firm for your rental properties is such a critical issue. That’s because they will handle lots of critical tasks on your behalf and they will be the liaison between you and the tenants who live on your property. Before settling on a property management firm you’ll have to ascertain their capacity, efficiency, professionalism, and delivery. A property management firm with poor services will tarnish the reputation of your rental properties and make it hard for you to secure clients in the future. Here are some questions you’ll want to keep in mind when vetting any property Management Company in Pharr.
1. The Cost Implications
Most property management firms charge a monthly fee to watch and maintain your property. Some charge an annual fee. The fee could range from 5% to upwards of 18-20%. You should look for a firm that gives you an itemized breakdown of their charges. This will help you ascertain what you are paying for in terms of services rendered. Obviously, you should look for a firm that charges the least possible price yet still offers top quality value. Most of these fees tend to be tentative and it’s possible to negotiate it downwards.
2. Reporting and Communication.
The communication from the property management ought to be timed, proper, and consistent. Most property management company in La Joya area send monthly reports to you detailing any major issues that they may have arisen during the period. The firm ought to provide you with the means with which they communicate and what they report on. They also have to provide you with information on how they communicate during emergencies and who is responsible for that. Properly run property Management Company in Pharr area have an appointed person who liaises with you during the entire period of the contract.
3. Repairs and Maintenance
You have to ascertain whether the firm has their own maintenance crew or they hire third party contractors. You also have to get an itemized charges that they will bill you, for various services. Can they handle all kinds of repairs? Is there an exception? What happens if they can’t do something? You also need to be informed of the maximum amount that the company will spend on repairs before contacting you. For most property management firms the maximum spending limit is $100 after which they will call to notify you.
4. Accounting
This is one of the most critical and touchy issues. How do they set and collect rent? When does the manager mail the check to you? Is it the beginning or the middle of the month or does it come in quarterly? State laws usually dictate the accounting rules that managers have to adhere to. Even then you want a written confirmation from the property manager firm. In line with that, you should enquire on how they handle tenant deposits. Are they put together with all other income or secured separately.
This is one of the most critical and touchy issues. How do they set and collect rent? When does the manager mail the check to you? Is it the beginning or the middle of the month or does it come in quarterly? State laws usually dictate the accounting rules that managers have to adhere to. Even then you want a written confirmation from the property manager firm. In line with that, you should enquire on how they handle tenant deposits. Are they put together with all other income or secured separately. In the case of anomalies, how do you proceed with the complaints?
5. Tenant Advertising and Retention
You need to be able to address the issue of marketing. Do they advertise in the paper? Where else do they advertise properties? Do they mount the for rent signs put on the property’s lawn? Any well-established property management company in Pharr provides targeted adverting for your rental property to potential clients. How well do they explore the different advertising platforms most importantly social media and other online marketing platforms? You also have to figure out whether they charge you for those ads and by how much. There are quite a few effective platforms where you can advertise rental properties for free, online.
6. Tenant Screening
This is one of the most critical interviews that you need to ascertain. Do they have a mechanism for screening clients? How effective is it? Are there costs associated with it? Is it legal or could it lead to lawsuits? The ability to screen clients ensures that you don’t end up with felons or problematic clients who break all the tenancy rules. In line with that, they also need to advise you on how they go about carrying out evictions. What are some of the breaches that could necessitate evictions? How do they carry out the evictions? What are the costs to evict?\
7. Reserves and Termination of Agreement
Reserves are the money set aside to sort out any unexpected issues that may come up. Does the company require any reserves? How much are the reserves and how are they computed? What kind of activities can the reserves be spent on? In the event that your contract does not work out, what are the terms of dissolution? You have to be informed of what it will take to terminate or dissolve the agreement? Are there charges or penalties for ending the contract? Lastly, what are the issues that can lead to termination of the contract with the property management from?
8. Yard Work
Depending on the size and type of your property, the type and extent of yard work may vary. Therefore you need to get a clear yard work information from the property management firms. Do they handle yard work? How much do they bill yard work at? Do they carry out landscaping and how much do they charge it at? Do they mow lawns? What about external plumbing? Security installations? How about handling snow removal? How much does each cost? In fact, the best thing to do is to list all the yard work and use them as part of your interview questionnaire.
Final Thoughts. One of the best ways to go about vetting property Management Company in Pharr is to ask for referrals. Find out two or three other properties that they’ve managed before and talk to the property owners before making a decision. Remember that no property management firm can be good at all these elements. You might have to settle for the one that simply ticks the most boxes. If you spent enough time vetting the property management firms then you’ll have an easy time with how your property is managed.