Hiring a property manager for your rental property can be extremely helpful. These managers can help you to do a number of things including finding tenants to fill your property, hiring contractors to make repairs, and more. Before you hire a property manager though, you will want to review these four things:
- Services Vs. Fees: All management companies are going to charge a management fee, which can be anywhere from 4% to 12%. Sometimes these fees will not include certain services that you may need to ask the property manager to take care of. So, be sure that you review what services are not included in the management fee so that you can choose a property manager who will be saving you the most money.
- Liability: Be sure that you review your property manager's liability. The liability section of their contract is there to protect them from having to be liable for any damages done to the property. You want to be sure that the property manager has "reasonable care" listed in their liability section. This means that if the property manager did not take care to find the right contractor for work on the property, then they will be responsible for damages that the contractor has done.
- Contract Length: If possible, you want to be sure that you do not sign a long contract until you are able to trust the property management company after working with them for a while. However, most property management companies require at least a year. If this is the case, then you will want to be sure that you at least review the termination policy.
- Termination Policy: Reviewing the termination policy is important since this states when you and your property management company can terminate the contract. Usually, it will say that the property management company can terminate the contract if you are not paying certain fees that are required. To be sure that you are able to terminate the contract under reasonable conditions, you want to be sure that this information is laid out. This will allow you to know when you are able to take action against the company should you ever need to.
By looking over these four things before signing a contract with a property management company, you can be sure that you hire the right one for you who will save you money and hold up their end of their responsibilities, as well.