Have you decided it’s time to hire a property management company to assist with the day-to-day responsibilities of your investment properties? As you go about the process of finding the perfect property management company you should seek referrals and conduct interviews with different companies. Here are 5 important things you definitely want the company you choose to be great at:
Knowledge of Landlord – Tenant Law
The legal side to renting properties can sometimes be confusing and difficult, especially if you don’t have a lot of broad knowledge of Landlord – Tenant Law. Make sure that the property management company has the right license and expertise to ensure you won’t be hit with any legal problems because of their lack of knowledge on the front end. Handling security deposits, collecting rent, initiating/terminating a lease, evicting a tenant and complying with safety codes all have state and national laws attached to their processes. These are the kind of actions you want to make sure your company has down to a science that adheres strictly to legal requirements. Legal action can be costly in time and money, best to avoid it at all costs.
Positive Tenant Retention Rate
One of the last things you want as a rental property owner is a fluctuation in whether or not a property is bringing in rent income. This is a key factor in the success of your investment property. Tenant turnover should be a top priority as you think about a strategic plan for your rental properties. Keeping a reliable tenant in your properties consistently over time is what will bring you a return on your investment. (Psst: Woody Creek properties have a 96% occupancy rate, meaning there’s almost always someone paying rent to you—which also means someone else is paying your monthly mortgage.)
Thorough Tenant Screening Practices
As you go about inquiring of property management companies, be sure to include questions about their tenant screening process. In order to maintain the quality and attractiveness of your property a thorough tenant screening process is required. Ask companies to supply you with a sample of their tenant application documents, as well as a detailed report of their background check and financial investigation routines. Reliable tenants that take pride in their homes will increase the value of your property and the future of your investment.
Care of Property Agreement
To avoid a lot of headaches in the future, select a property management firm that handles most, if not all, care of the property. Day-to-day maintenance of properties is one of the only drawbacks to rental property investment. If your property management firm does not handle incoming requests and perform services, this could limit the hands-off feature of property investment.
Local Market Knowledge
Local expertise and knowledge about the current state of the real estate market in the area where your property is located is of utmost importance. The real estate market is always changing, evolving and shifting. A local property management company with years of experience in a certain area can lend you support in a way that will prove to be very beneficial. Knowledge of the area’s demographics, population shifts, economy and housing needs will support a successful strategy in establishing your properties among the target population.
Woody Creek’s property management staff are top of the line in experience and expertise. The Knoxville area is our home and we are thorough in our market analysis and research. It is our goal to make your properties succeed through our services and we would love to hear from you about any questions you may have about partnering in growing your investment. Contact us today!