Educational Business Tips
Better Business Bureau
Property management companies list rentals, show property, collect rent, handle maintenance and repair issues, respond to complaints and, if necessary, evict bad tenants.
If you’re looking to hire a property management company, BBB® advises:
Check references and experience. Treat your selection of a company as if you were hiring an employee. If they can’t provide positive references and examples of their work, continue looking.
Look for a cancellation clause. Read all fine print in your contract. Ask about the cancellation policy, which will outline the circumstances in which either you or the manager can end the contract early and at what cost. A 30-day notice is customary, but some management companies require up to 90 days.
Evaluate their commitment. Make sure the management company is prepared to handle issues that happen 24/7, holidays included.
How is conflict handled? Ask the prospective property manager how they deal with difficult situations such as tenant-caused damages or evicting a tenant. Take notice of their general conduct with you: Are they polite and respectful or are just trying to win your business?
Get multiple bids. Talk to a few property management companies before you make your decision, and compare their rates, which typically run 7 to 10 percent of the monthly rent. Find out if their monthly fee is for what rent is supposed to be or for what is actually collected.