There are many different types of management companies to choose from. It is normally a good idea to find a manager that specializes in your particular area of investments. For instance, for beach properties, you will want a management firm that specializes in attracting vacationers and tourists for those types of properties instead of commercial units.
If you find that your units that have inundated you with various tasks, then a management company might be able to help you get organized. This is especially true if your business has grown substantially and you have increasingly more units to take care of. It is important to keep on top of things such as repairs, leases and tax renewals.
The second thing on your checklist should be how the manager shows the properties. Pay attention to the process that they use to show properties. This will give you an idea of how successful they are at obtaining quality tenants for you. If the manager is not showing the properties throughout the whole week, this could decrease your chances of finding a tenant quickly.
If your property is part of a government affordable housing program, and not just for tourists, then you will normally receive financial assistance. This may be in the form of grants, tax credits or low-interest loans. You receive this when you agree to rent some of your units to tenants who earn below a certain income threshold. There are special rules you must comply with in order to continue receiving this financial assistance. Many landlords in this situation hire a management company with experience in this area who knows the rules and can ensure that all of your units are in compliance with the rules.
If you are not interested in taking on a hands-on management role, then it might be a good idea to hire a manager. You may consider your units to be only an investment for earning money, and do not want to be bogged down with the day-to-day management of them. In this case, you may need outside help.
If you have other commitments with work and family, your time may be very limited. If this is the case, then landlording will probably not be your full-time day job. You may prefer to spend time searching for new properties and arranging financing rather than the day-to-day problems of taking care of the properties.
You should also be sure to check if a management firm actually manages properties instead of just trying to sell them. You do not want someone whose focus will not be on taking care of your tenants and units. Ask the firm from the outset what services they offer and what their fees are. This is important information to know before you set up an appointment.
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