Here are some things to consider:
Fees:
Most people want to begin with the fees even though this may not be the most important consideration. Total fees for property management of a rental home tend to range from 10% of the rent on the low end to 17% on the high end. Companies whose total fees are 10% or less typically do not use the Realtors Multiple Listing Service. The loss of this powerful tool may cause you to have additional rent loss due to vacancy. This costs you more money than going with a company that uses the MLS. Due to their low fees, these companies have such a high volume of managements per property manager that the service suffers drastically. Some companies charge a flat fee per month for managing your property. Often this fee continues even when the property is vacant. They then charge extra for marketing, Multiple Listing Service, and lease renewals. The company still needs to make a certain amount to provide quality service, and if the fees are too low, service will suffer. So if you choose a company with the lowest rate it may actually cost you a lot more money in other ways.
Communication:
The single most important factor in managing your rental property is communication. Some companies have a cadre of property managers who just sit and take phone calls about the properties. They generally have a different group of people called leasing agents, who work on getting the property rented. As an owner you are forced to work with one person on getting the property rented and then multiple other property managers once the property is rented. This can be very frustrating. McMath Realty is set up so that there is one person with whom the owner communicates from start to finish. The property manager works with the owner on getting the property rented and then works with the owner and tenant on all future issues. This creates a much better communication flow for the owner. If you are not comfortable with a particular property manager, you can switch managers without having to switch companies.
Finding good tenants:
The most important factor in owning a successful rental property is finding good tenants. One local property management company placed an advertisement in the newspaper stating that they needed tenants for their rental properties. They added the words “bad credit, no problem.” As an owner of a rental property, you will find that the most qualified tenants will take better care of your property, pay their rent in a timely manner, and will stay longer in the property. If you place a marginal tenant in a property, it will result in higher turnover, expensive repairs, and low return on your investment. Ask the management company what standard they use for finding good tenants. McMath Realty has a 98% success rate for finding good tenants and occupancy averages at least three years.
Weldon McMath – McMath Realty Property Management