There are numerous property management companies for property owners to choose from. With so many options, what should investors be looking for? In this article, we highlight some of the key services to be sure to look for in a Phoenix property management company.
Phoenix Property Management Services
Real estate investments are a great way to generate wealth, but they come with potential pitfalls if not managed properly. Finding the right partner in a property management company is key to securing your investment and maximizing its long-term profitability. And while we would be honored to work as your property manager, it would be shortsighted to not consider multiple companies. Plan on sitting down and interviewing at least three potential companies and then, regardless of the company you choose, be sure that they provide you with the services outlined in this blog post. But first …
Do I need a property management company?
Yes! Whether you own one property or 30 rentals, a good property management company will put its expertise to work to maximize the return on your investment. Even if you like the idea of being a fulltime landlord (taking calls in the middle of the night, scheduling services, collecting rent, etc.), there is something to be said for the specific skill set a property management company employs to ensure maximum efficiency in terms of both time and money.
A robust tenant marketing and retention plan
When it comes to rental properties, one of the most important factors that will determine the profitability of the unit will be how well it is marketed. Finding and keeping good tenants is the key to making sure that you have rent to collect every month and that you do not have to worry about the well-being of your property.
When meeting with a potential property management company, ask them how they market properties. Ask them about their overall vacancy rate, how long it takes them to fill vacancies on average and what they do to get the word our about vacancies. Good marketing creates competition for your property, meaning that you can take you pick of tenants and find one you are comfortable will be responsible and respectful. Which brings us to …
What does your would-be property management company know about tenants? How do they screen tenants before they let them move into your house, condo or apartment? When meeting with companies ahead of your decision, ask to see a copy of the rental application that they use. Ask about any fees for taking a property off the market without a signed lease (or if they even do this at all). Find out about their system for protecting against real estate scams and ask the representative which qualifications they feel are most important in a tenant. Their answer should give you a ton of insight into the company’s overall philosophy and what you can expect if you decide to let them work for you.
Experience with HOAs
While homeowners associations can complicate the process of owning investment properties anywhere in the country, with the prevalence of HOAs in the great-Phoenix area, it is nearly unavoidable. Having a property management company that is familiar with these associations and who will go the extra mile to understand all of its rules will keep more money in your pocket in the long run. By better enforcing tenants meet the HOAs requirements can save you potential fines (unless your lease agreement stipulates tenant is responsible: a good idea) and, better yet, quickly identify a tenant who may not take proper care of your property. Furthermore, your property management company’s understanding of the HOAs policies allows them to share that information with you, meaning that any major decision about things like landscaping or exterior paint are made swiftly and accurately.
A great reputation
As the old saying goes, “A man is only as good as his reputation.” Welp, the same bears true for a property management company. All else being equal (or maybe even unequal), a company’s reputation should be a huge decision in your decision on which property management company to use. If you have friends or family members who own rental properties, ask them who they use and how their experience has been. Ask a company you are considering for some references. Do some research online and consider the impression you get when meeting with company representatives. Your property is an investment that is too important to entrust to someone whom you do not like or trust.
Are you on the market for a Phoenix property management company? Give us a call! We would love to schedule a time to meet so that we can explain all of the things we do to create the most value possible for all of the investors who trust us with their properties. We have built a reputation as one of the foremost property management companies in the Valley. Let us show you why.