Property management companies make a landlord’s life easier by shouldering most of the responsibility of rental property activity. Most charge a percentage of the rental price as their fee, and few rental property owners argue that it is not a worthwhile expense, given how much property managers do for them.
When selecting property managers, landlords can work with local companies or large, multinational corporations. Much like choosing a house, this is a personal decision. Here are some things landlords need to know before selecting a property management company:
Professional licensing and certification
Landlords who want to hire certified property managers in Denver and other US cities can opt for local companies like Evernest, Mynd Property Management, or Atlas Real Estate. Alternatively, they could work with industry giants, such as Greystar Real Estate Partners LLC or the Lincoln Property Co. Most landlords recommend working with local property managers as they have their finger on the rental market pulse in that area. Regardless of their choice, verifying the company’s licensing and certification is an essential task. Evernest hires only certified agents with an up-to-date real estate broker’s license, per Colorado legal requirements. The company operates in four major Colorado metropolitan centers: Denver, Fort Collins, Colorado Springs, and Boulder. It also has branches in Tennessee, Georgia, and Alabama. All agents are certified in compliance with state laws to ensure they offer the professional top-class service Evernest has become known for as a local property management company.
Landlords should investigate property management companies’ affiliations with professional organizations, such as IREM (Institute of Real Estate Management), NAR (National Association of REALTORS), and NARPM (National Association of Residential Property Managers). These organizations offer additional training and development opportunities to capacitate property managers for optimal job performance.
Areas of operation
Local property management companies do not all offer the same services. Before choosing one, landlords should determine what they need from a property manager to decide on the best fit for their requirements. Property management companies offer maintenance, marketing, tenant screening, property inspection, rent collection, and accounting services.
Landlords should determine which services are essential to them and look for a local property management company that provides them. Denver property management companies, like most others, charge a percentage of the rental price for their services. This percentage will be higher for those who offer multiple services. Landlords must independently manage the services their property manager does not or hire someone to do so.
Specialized experience
Many real estate companies offer property management services as an add-on, although it is not their area of expertise. Denver landlords can avoid these companies as many specialized property managers operate in their area. Real estate agents moonlighting as property managers do not have the requisite experience and knowledge to provide top-quality service. They do not have sufficient time to devote to the task as their core business is selling homes.
Even when dealing with a property management company, landlords should be discerning. Some companies specialize in commercial buildings, rendering them ineffective for clients wanting residential property management services. Many residential property management companies specialize in multi-family buildings, such as apartment complexes. Landlords of single-family dwellings should look for a company that works in that industry niche.
Reviews and references
Property management companies rely on Yelp and Google reviews to generate more business. While these reviews should not be regarded as a singular factor when choosing a Denver property manager, they should form part of a landlord’s research. One or two bad reviews should not put them off, but a string of complaints indicates a need for caution.
During a meeting with a property manager, prospective clients should ask for tenant and landlord references. A telephone conversation with these parties will provide a clear picture of how the company conducts business.
Client agreement
Property managers have a set client agreement they sign with landlords who engage their services. Property owners should scrutinize these documents before signing to ensure they understand the fees, services offered, and other terms and conditions. Most contracts have a set minimum duration, typically 12 months.
An agreement also includes the fees the property manager charges for their services and what rental homeowner’s insurance requirements. Property owners should ask the management company to clarify any clauses they do not understand or consult an independent attorney.