How To Choose A Property Management Company: An Expert Guide

When you are in need of property management, you’re looking for a company that will go above and beyond. There are so many things that the role requires, from maintenance to tenant management to daily upkeep of the property. Selecting the right ones to take on those varied and important tasks is crucial. So how to choose a property management company becomes central to how you manage that investment. Let us go over some of the most important factors to have in mind when making this major decision.

We have years of experience juggling all that factors into property management. Handling rental property management in Boston means knowing the ins and outs of the region, understanding local and state regulations, as well as the intricacies of executing financial tasks and records from one day to the next. And so much more! That’s why hiring the right property management company is key to making sure it all operates at peak performance.

Let’s jump into all the things to think about when going down this path.

Table of Contents

• Why Choosing the Right Property Management Company Matters
• Key Factors and Red Flags to Consider
• Evaluating Property Management Contracts
• Benefits of Working With the Professionals

Why Choosing the Right Property Management Company Matters

Choosing the right property management company is essential for property owners, landlords, and investors. A competent management company ensures that your investment is well-maintained and profitable. They handle everything from tenant screening and rent collection to maintenance and legal compliance, which can save owners a significant amount of time and stress. They also know what their responsibilities are so that the burdens are not passed on to owners.

A quality property management company also has the expertise to market the property effectively, utilizing multiple strategies to boost exposure and attract tenants. If a professional management company can’t increase rental income while maintaining the property’s value, they are not fulfilling their role.  After all, that’s what to look for in a property management company – the ability to get the job done.

Key Factors and Red Flags to Consider

There is a lot to consider! Choosing a property management company involves knowing what they are responsible for as well as learning about the details of what it means to sign on with one. So, what are the main factors to consider?

Research: Referrals and Online

You heard it from teachers and maybe bosses, but it is true for so many other things in life. Do your research! When you are investigating how to choose a property management company, that should mean doing your research. Try asking the people that you know. They can be a direct source of information, but it also means researching online, where there is a wealth of information.

Ask family and friends. Ask colleagues that may have done some investment properties before. Be prepared with the right questions. What were the strengths and weaknesses of their experiences with the company? But also, keep in mind the context of the person and their situation. Your investment and property management journey may be different than others.

Try searching online for opinions about the company. Similar to gathering information from people you know, make sure you filter opinions through your own sense of the situation. If a property management company has been around long enough, there is bound to be a mix of reviews. Do your best to seek out these opinions, but also apply some thinking towards understanding the overall experience of all people, not just the few that voice their opinion on a website.

Licenses and Certifications

There are licenses and certifications that may or may not be required, but even if they are not required, it doesn’t hurt to know that they have them. Most states – though not all – require that property management companies have either a real estate broker’s license or a property management license. There are also trade organizations that they might have certifications with, such as the National Apartment Association, the Institute of Real Estate Management, and the National Association of Residential Property Managers.

Reputable property management companies will be sure they have the licenses needed while also being active in the industry. So these types of things could become a factor in your search.

Vacancy Rates

You can look at specific numbers to get a sense of how successful the company is. For instance, what is the company’s overall vacancy rate? How many days on average is a vacant property on the market? Each day your property sits without a tenant represents lost income and lost opportunity.

So, companies with high vacancy rates or extended time on the market may lack the sufficient experience, tools, or processes to be effective. You can ask the company what their vacancy rates are directly. If that answer is dodgy or not answered to your satisfaction, that’s a red flag.

Management Agreement Terms

There is no one standardized Property Management Agreement among managers. That is why inspecting any agreement put in front of you is necessary. First and foremost, there should be transparency, which means a clear understanding of the scope and terms of the agreement. While they do not all look exactly the same, a Property Management Agreement typically outlines certain things such as:

• Services rendered,
• Budgets and approval rights,
• Management fees,
• Performance benchmarks, and
• Termination rights and responsibilities.

Fully evaluating the contract and the terms in it can be a large factor in determining which property management company works for you, as well as enlightening you on any red flags that may come up in your search.

Benefits of Working With the Professionals

Owning and managing rental properties requires a ton of time, work, and energy. Oftentimes, it’s just too much. That is when property management comes into play. If you’re looking for how to choose a property management company, that means you’ve decided you need help from the professionals. Why not consider us?

If you’re looking for a top-notch team, look no further than Bay Property Management Group for your property management needs. Our team of professionals can help you throughout the entire rental process, from marketing to tenant screening, maintenance, rent collection, and more. So, if you need rental property management in Boston or any of our other servicing cities, contact us today!