Property Management Kansas City Part 2
Now you know if your property management company is licensed. You also know how many properties they currently manage and what type of properties those are. Lastly you know how many people they have with in the company for property showings, marketing, and maintenance. So far do they seem like they are the right fit for you? If the answer is yes then lets take a look at what they can do for you.
1. What type of marketing do they do? You want to know their ability to quickly fill in a vacancy if needed. Having a variety of marketing for your properties is a must, not just a sign in the yard. The more exposure your property has the quicker it will rent. Most renters are looking online so you want to look for 3 or more additional online methods for marketing your property.
2. Is the marketing included in the management fee? You do not want to be charged additionally for any type of marketing they do.
3. Do they charge based on collected or scheduled rents? You do not want to be charged if the property is vacant. Non-sense or junk fee’s add up and can change your property from cash flowing to just making expenses.
4. What are the fees for placing a tenant and how long does it take to place a tenant? You don’t want them to give you a number like 60 to 90 days. 30 days or less is ideal. This number will also depend on the demand of rental properties in your area. Some property management companies attach a fee to placing a tenant. This is usually half of first month’s rent to full first month’s rent. Remember you can negotiate!
5. How is payment handled to you? You want to find out what methods of payment they take from tenants. There are many ways to do direct withdrawals with in some management software. Make sure your management company has several options for your tenants. Also find out how and when payments are made to you.
6. How often do they send reports on the property and what is included in those reports? You want someone who is using a property management software. This will give them the ability to send you a variety of reports on a monthly, quarterly, and yearly basis. You do not want someone who just sends you a simple spreadsheet. You want your management company to put together a report that gives you a breakdown of income and expenses for the property.
Please see part 3 for the remaining questions to ask and how to evaluate your current management company.