Wealth accumulation through real estate acquisitions is one of the greatest strategies for building net worth available today. The benefits, ranging from depreciation to cashflow, have a multiplicative effect on your personal balance sheet. Generations of investors have realized these benefits, but one of the challenges of handling a real estate portfolio is managing the property day-to-day. Most investors would rather spend their time finding the next deal or simply spending time with family instead of trying to collect rent payments or unclogging stopped toilets. Partnering with a competent and reputable Property Management Firm can solve all these issues. The following 3 items should be considering when choosing the best Property Management Company for your portfolio:
1 – What type of properties do they manage?
This may seem simple, but its very important. You do not want to find yourself with a multi-family portfolio managed by a company that handles mostly single-tenant net lease properties. Be sure to ask the companies you are interviewing what they specialize in and for a list of properties they manage.
2 – What is their reputation?
Again, simplistic, but Property Management companies seems to come and go as often as the weather changes. When overall market cycles are down, people jump into the business of managing property to make ends meet. When interviewing companies to manage your property, ask them how long they’ve been in business and if they can provide any professional references from other real estate companies or clients. It may also make sense to look through their website and to determine their level of professionalism and maybe even find client testimonials.
3 – Are they member of any local or national trade organizations?
Local and National Trade Associations provide certifications at every level of property management. From leasing assistant to property manager all the way through corporate certifications. These organizations also keep property management companies in touch with the latest advances in best practices, technology, an legal issues. When interviewing your prospective management companies, be sure to ask which trade organizations they subscribe to and how those memberships will allow them to provide a better level of service to you.
