Being a landlord means you have a lot on your plate– from marketing to screening tenants and making repairs. It can be incredibly time-consuming and stressful to juggle all of these yourself. That’s why so many landlords have property managers take the reins. If you’re one of them, you may find yourself asking, “How do I compare property management companies for investment protection?”
In summary, when you look for a property management company, you should research their online reputation, policies, and legal know-how. But that’s only scratching the surface. To really help you answer this question, we’ve compiled some expert tips that should help you make a more informed decision. Read below to learn more!
Key Takeaways
- You should check a property management company’s BBB ratings and online reviews to see how they handle tenant concerns.
- A good property management company should have fast response times and vetted vendors. Also, they should be transparent about fees and have set preventative maintenance policies.
- A reliable property manager stays updated on local and federal laws, drafts strong leases, and manages evictions to comply with the law.
Online Reviews and BBB Ratings
In today’s day and age, the bulk of people’s research happens on the internet. But how can you differentiate between the good and great companies online? In our experience in the world of property services of San Antonio, we know there are a few ways to do this.
First, you should look for the company’s online reputation. When you research a specific company, look for what past customers or clients have said about their experiences, whether it’s on Yelp, Google, or elsewhere. If you want to dig a little deeper, we recommend you head over to social media platforms like Facebook. You’ll find that reviews tend to be more candid and unfiltered on these platforms, so you can a clearer snapshot of previous customers’ takes.
Then, if you’re looking for industry accreditation, look for the company’s Better Business Bureau (BBB) rating. This accreditation highlights the company’s track record in to resolving complaints and following ethical business practices.
Fee Structures and Pricing
Looking into a company’s reputation is a good start. But to really make sure they’re the right fit, it’s also crucial to look into their fee structure and pricing options. As a business owner, you want to choose the property management company that offers the best for cost-efficiency. So, what exactly do we mean when we say fee structure, and how does this affect your cash flow?
Typically, property management companies start with a base fee. However, there are additional payments throughout the contract that may eat into your bottom line if you don’t plan for them. To give you a better idea, here’s a brief review of some of the most common property management fees we’ve come across:
- Monthly Management Fees: The company charges this recurring payment to cover the cost of day-to-day operations, like tenant communication, payment collection, repairs, and emergency maintenance. In our experience, this usually is set at a fixed rate or a percentage (typically between 8-12%, although it can vary vastly by property type and how much services they’re providing).
- Setup Fee: This is a one-time, big-time fee that you pay when you first hire a property manager. Typically, this ranges anywhere from $250-$500 or the equivalent of one month’s rent per managed unit. Primarily, the company uses this to set up bank and bookkeeping accounts, conduct initial property inspections, and acquire its needed licenses.
- Tenant Placement Fee: With this fee, you pay whenever a property management company successfully lands you a tenant, oftentimes half or a full month’s rent. Essentially, this placement fee covers the company’s marketing costs, screening expenses, and more.
Maintenance and Repair Policies
When you ask, “How do I compare property management companies for investment protection?”, one of the biggest things you should inquire about is their maintenance and repair policies. Why? Property maintenance and repairs don’t just impact your property itself. Just as importantly, they affect your tenants’ overall experience and satisfaction. With that said, what should you be on the lookout for?
First, try to get a sense of their responsiveness. In particular, examine how quickly they respond to tenant repair requests. Also, reliable property management companies should have a ready-set network of trusted vendors who are licensed, insured, and qualified to do any repair job. And beyond that, they should have built-in policies for preventive property care. They should conduct scheduled inspections and proactively handle routine upkeep, so you have fewer repairs down the road in the first place.
Legal Compliance and Risk Mitigation
If you’re planning to partner with a property management company, it’s essential to check their adherence to federal, state, and local regulations (like the implied warranty of habitability). Property managers need to follow strict rules and guidelines – such as the Fair Housing laws, warranty of habitability, and ADA requirements. If they fail to comply at any point, you may be saddled with lawsuits, fines, and other problems that put your business at risk.
Speaking of risks, another (often overlooked) factor that you should consider when choosing a property management company is how they prepare for market changes. Economic shifts, market fluctuations, and other unexpected challenges are always a possibility. It’s part and parcel of running a rental. So, it’s critical to choose an experienced company that isn’t just adaptable but proactively prepared for the worst-case scenarios.
Partner with BMG for your Property Management Needs
All in all, comparing property management companies comes down to trust, transparency, and long-term investment protection. But to really pinpoint which one is the perfect fit, you need to dig deep into their client reviews, fee structure, repair processes, maintenance policies, and more. The goal is to know enough to gain a clear picture of their capabilities and see which one matches your needs most.
In the meantime, if you’re looking for a partner property management company in Texas, look no further than BMG. Our professionals oversee over 6,000 rentals across Texas, Pennsylvania, Maryland, D.C., Northern Virginia, and more. We’ve developed industry gold-standard policies and practices designed to help landlords and property owners boost their income potential. From transparent communication, 24/7 service, and fair property management fees San Antonio owners can rely on, you can trust Bay Property Management Group for your rental business’s needs. Contact us today to find out more!