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  • Do I Need a Rental Property Management Company?

    April 27, 2018
  • Whether you are considering your first rental property or just closed on your 50th, you have many decisions to make relating to how you will manage your investment. Keep that pink bathroom or tear it out? Update the landscaping yourself or hire help? One of the questions you may not have considered is whether or not to hire a property manager. Many investors (both new and experienced) are hesitant to hand over any of their cash flow to a property manager, but this is one expense that can save money, time, and maybe even your sanity.

    What to Look for in a Property Management Company

    If you are getting ready to purchase your first investment property, or hand-off the management of several that you already own, it’s time to start your search for a property manager. Lukas Krause, CEO of Property Management Business Solutions, offers his tips on how to find a good rental property management company.

    “An investor should consider experience, trust and transparency, especially as related to bookkeeping and financial matters, referrals from trusted friends or acquaintances, online reputation scores, property management services provided, and lastly, price. Like any industry, you get what you pay for. The cheapest price usually leads to a poor customer experience, and when you are turning the keys over to someone to take care of your investment you want someone who will treat both the owner and the tenants fairly and with respect.

    If the property manager is part of a reputable franchise organization such as Real Property Management, the property owner benefits with better national oversight, better systems, and better processes, because the national group has greater capabilities and a vested interest in maintaining standards and ensuring compliance across the entire organization.

    Questions to consider when hiring a property manager are:

    • Are they straightforward about what they do and don’t do?
    • Is their pricing understandable, without hidden costs?
    • Do they have a positive reputation, with years of experience?
    • Are they part of a national organization like Real Property Management?”
    • – Lukas Krause

    Scott Schuhwerk has over seven years of experience in real estate investing and asset management, and is the Founding Principle of Vienna Holding Corporation and Vienna Property Management. He agrees that both past experience and continuing education can ensure that a property management company is equipped to protect both you and your investment.

    You want to align yourself with a company that has experience in leasing residential housing, preferably a company that has been around 5+ years. Have a face-to-face meeting with the property management company you will be working with to interview them, and have them tour your property to make recommendations. Have a prepared list of questions to ask them.

    I would recommend a company that is affiliated with NARPM (The National Association of Residential Property Managers). NARPM has several events a year to keep their members updated and educated on laws and the business of managing single family rentals with topics that cover Fair Housing, proper tenant screening, inspections and handling security deposit disputes. – Scott Schuhwerk