Evaluating Property Management Companies
Is your work becoming too much to manage? Do you want to improve service, maintenance and administration?
When you want to grow, improve profit and service, you can either adopt new automation technology and streamline your company managing work in-house, or hire a property management company.
Consider first before you hire an employee or a property management firms, that there might not be any suitable for your business. That will get you in a more appropriate frame of mind to make the best choices. Because wishing and hoping, and preconceptions can lead to negative outcomes when reality is exposed.
When You Want Improvement, You’ll Find a Way to Get it
In the past, landlords tended to look for a property management firm, without too much thought based on exhaustion and burnout. Consider that property management firms might be exhausted too. And as we discuss there, we can’t take for granted that their service will be cost-effective. Outsourcing adds costs and risk. It’s Buyer Beware.
Assuming you can’t handle the work might inaccurate. You and your team might be the only ones to deliver services optimally, and cost-effectively with the necessary care of your tenants.
Adopting an all-in-one property management software platform might be the right way to go. In many cases, the property management company’s software is the real value you’re purchasing. If efficiency is the issue, then look into new software. However, if you truly don’t possess the capabilities needed, consider these 9 key decision points:
- Time and Availability:
their availability and willingness to commit time to property management tasks.
- Technology Used:
an all-in-one SaaS-based property management software platform allows high-performance management — professional acccounting, automated payments, real-time reporting, and a private communications channel.
- Location and Proximity:
the distance between the landlord’s residence and the rental properties is crucial. Managing properties from afar can be challenging, as it may require frequent visits for inspections, maintenance, and tenant interactions.
- Property Portfolio Size:
your portfolio, especially mixed might be out of their range to manage.
- Expertise and Knowledge: their expertise in your types of properties including knowledge of local landlord-tenant laws, maintenance skills and tenant relations are critical. Lack of experience, insight or expertise can lead to costly mistakes or even disaster.
- Legal and Regulatory Compliance:
knowledge of your local, state, and federal regulations on privacy, data protection, and management practices is essential as non-compliance can result in legal costs and financial penalties.
- Financial Considerations:
what are their fees (5% to 8%? of rental income), how will they charge, and will it ruin your profitability?
- Tenant Relations:
do they have the communications, trained staff, and responsive compassionate customer care you need and will they reduce tenant problems and complaints?
- Long-Term Goals:
will you need to expand your portfolio, or cut costs more significantly in the years ahead?
MultiHousing News Rating of Multifamily Management Companies
Multihousing News recently published their list of leading firms in multifamily management, and it summarizes stats such as units managed, occupancy rates, and diversification.
Occupancy also appeared to be a key criterion in their evaluation It might suggest a singular focus on revenue.
Do you believe service quality, modern management systems, tenant experience, key skills and availability, profitability and fees more important? Is occupancy rate a valid catch-all rating that mirrors tenant satisfaction, tenant selection, rental demand, maintenance, profit margins, future performance, and reliability?
Property Management Firm Evaluations
To evaluate business performance what if we tighten our scope to include the most relevant?
Additional List of Evaluation Criteria:
- experience with the types of units/buildings you own
- senior management skills and experience
- financial performance
- financial transparency
- maintenance costs
- rent collection processes
- property management software
- staff skills and competence
- inspection and maintenance competence
- service response times
- tenant complaints
- owner communications quality
- transparent fees and contracts
- marketing and promotion
- quality tenant acquisition strengths
- right-sized for efficient/responsive service for your firm
- number of other landlords/properties served
- technology adoption
- company brand reputation quality
With that big list of evaluation criteria, you might prioritize the top ones and make a much better hiring decision.
Software Technology is a Key Part of the Value Proposition
Hiring a property management company or a property maintenance firm is a big challenge, which may be why many landlords stay stuck in the status quo. In fact, the status quo may be one of the biggest threats to any real estate company today.
At ManageCasa, we want you to make good decisions, relevant to your specific needs. And we believe our always-available and updated, cloud-powered, SaaS platform should be tops on your list.
Or call 1 415 800 1245 to chat about you can keep your business in-house by adopting a property management automation solution.
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