How to Choose a Property Management Company?

A rental property requires proactive and professional level management for running daily activities smoothly. If you don’t have time and motivation to manage your rental property on your own then you should consider choosing a property management company.

Hiring an OKC property management company can be time-consuming and a fruitless effort unless you have some hacks to make the job easier. If you don’t have any idea on how to choose a property management company then this article is for you. This article has some useful hacks that will help you select an Oklahoma City property management company without any stress.

Choosing the right property management company can help your rental properties grow in a very positive and profitable way. It is very important to choose the right property manager as you will be putting your investments in their hands. Get to know about property manager responsibilities. In this article, I will provide you with some tips to pick the right rental management company.

Are you having trouble with your existing property management company? Get to know; How to deal with a bad property management company.

1. Online Reviews and Ratings

Look at the property management company review and ratings

These days, before selecting a property management company, you should do some online research. Go through Yelp and Google reviews as well as read comments on their Facebook page.

Reviews are a VERY important item in which to judge a company’s reputation. The closer to a 5-star review, the better, right? Well, not so fast. A 5-star review is not a realistic goal for a property management company that takes a firm stand for its owners. For example, the owner may demand:

  • That the rent is increased.
  • That a tenant is served with a 30-day notice to quit because they aren’t taking care of the property, etc.
  • A tenant’s request for improvements (for example, installing new flooring or painting) is not approved by the owner.
  • The owner makes the tenant wait for a repair to be completed.
  • A reasonable sum of money is deducted from a tenant’s security deposit as a result of damages they caused to the property.

I believe OKC Home Realty Services, LLC has received at least one 1-star review for each one of these. That explains our 4.4-star rating, which is not bad in regard to property management. So it’s important to read the reviews, and not just look at the number.

A more telling rating, in my opinion, is the rating with the Better Business Bureau (BBB). When a customer files a complaint with the BBB, they allow the business to respond to that complaint. If the business has done all it can to resolve the issue with that tenant, they can explain that to the BBB, and the business will not be penalized. On the other hand, if they have done something unethical, or have not worked to resolve that issue with the customer, they are penalized. The BBB cannot make the business give the customer a refund, but they can dock their rating. So I’m proud of our A+ rating with the BBB. It means that not one single complaint filed with the BBB has had any type of basis in fact.

Want to Know how much do property management companies charge?

2. Depth Of Experience

look for experience for property manager

Residential property management companies have widely different philosophies based on their depth of experience. Here are some factors to consider while selecting a property management company:

Do they have a culture based on real estate investing, or on doing transactions?

This has much to do with the thinking of the founder. Is that founder a real estate investor? If they are not, it’s going to be very hard for them to understand the priorities of a real estate investor. That is, what constitutes a good deal? How can the income of a property be maximized? How can expenses be minimized?

What types of investment properties do they have experience managing?

That is, do they focus on residential or commercial property management? If residential, do they do mainly single-family homes, or do they manage mainly larger multi-family properties?

What about neighborhoods?

Do they manage properties in the area where your property is located? When I say the area, I’m being somewhat general. No property management company can have a property on every street in the entire city (especially one the size of the OKC metro area!). But I would expect them to manage at least some properties within a mile or so of the one or many that you may have for management.

3. Get Quality Referral

Getting a Referral from the Right Person

The realtor who sold your property may have a fantastic property management referral for you, but I would be very careful here. You can’t always tell a realtor’s priorities. They may be getting a kickback from the property management company with whom they refer you should you give them your business (they are supposed to disclose that if they do).
Here are some other places to ask for referrals:
1. Real estate investor associations
2. Facebook, or
3. Other professionals (insurance agent, local CPA, etc.).
Once you get a referral, check the items in #1 to see their online presence.

Also, you can ask for current clients’ and tenants’ references while speaking with potential property managers. Talk with both groups about their experiences with the property manager. With clients, you can ask questions like if they are proactive with inquiries, maintenance, and filling vacancies. Also if their fees are clear and transparent?

On the tenant side, you can ask questions like “is the house well maintained and if repair requests are addressed quickly. Are they happy with the property management services and planning to renew the lease?”

4. Guarantees Offered

I’m not one to place much trust in a company that won’t offer me at least some iron-clad guarantees. If they don’t, it just doesn’t feel like they have much confidence in the product or service they offer.

Here is an example of the 2 iron-clad guarantees that OKC Home Realty Services offers:

1) We guarantee our tenants. If they move out during the leasing period, we will replace the tenant at no additional cost to the owner. We can make that offer and not lose our shirts because we are careful in our screening. It doesn’t happen very often.

2) If an owner is not happy with our service, they can cancel the agreement with a 30-day notice. We are not afraid to make it easy for owners to leave us if they are unhappy because we do everything we can to keep them satisfied. That results in not that many clients leaving. 

5. Things To Focus on During Interview

Interview Illustration

Certainly, the interview is the time to find out more about the depth of experience (#2) and about guarantees (#4). In addition, here are some other items to be sure to cover during the interview process:

  • Request a copy of the rental property management agreement.
  • Ask them to explain what they charge for their services, and not to miss anything they might be charged for.
  • Ask them how many times they have been sued by a client.
  • Ask about the size of their operations, and how they handle that number of rental properties (i.e., how is their office structured).
  • Ask them about the monthly financial reports they provide to owners. 

Recommended Article: Three Ways to avoid Property Management Embezzlement

Potential FAQs on Choosing a Property Management Company

How do I find a property management company?

Get referrals from others.
Look at their experience.
Check their license.
Look at their ratings.
Interview the best ones.



source https://www.yourokcpropertymanager.com/how-to-choose-a-property-management-company

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