Did you know the property management industry has grown steadily over the last five years, with over 296,000 active property management agencies registered in the US today? The industry is a booming success, even as housing prices fall, thanks to the value property managers bring to the people they serve.
If you own properties you want to rent, if you wish to sub-let, or if you're looking for a place to rent, you need a property manager on your side. Here are our three tips for finding a great one.
1. Take a Deep-Dive Into Reputation and Contracts
Start your search by looking for well-rated property management companies in your area. Once you've constructed your list, you can begin looking at the reputations of the companies you like the most. You can look at their reviews and testimonials
Finally, ask each company that makes it to the final stage of the selection for a preliminary agreement or a typical example of one of their contracts. It takes a little more effort but it will help you see what the final contract will be like. Here you'll want to prioritize clarity and specificity, as well as whether the management group is ready to clear up concerns in a professional manner.
2. Check Out Vacancy Rates
The vacancy rate is the typical amount of time a property doesn't generate rental income (due to its emptiness) per year expressed as a percentage. To see if a property management company has a good average vacancy rate, first, check the area's current average and then compare that with the company's stated average.
A good management firm will have its vacancy rate below the average if they excel at getting lease renewals. For renters, this means that the agency treats occupants so well that people keep coming back for more.
If their average is 3% or more above the area's average, they could be setting prices too high or mismanaging properties. If the property manager refuses to give you their vacancy rate, simply move on to the next business.
3. Look at Their Insurance Policies
A good property management company must have insurance for its units. At the very least, they need general liability insurance, but property-casualty and E&O insurance are also near-essentials to ensure proper coverage.
The property manager should also require renters insurance. If you're a renter (especially in a building with many units), it means that your neighbors will be vetted and filtered. This way you won't have non-compliant, disagreeable neighbors.
Let the Best Property Managers Help You
Great property managers make the lives of property owners and renters easier. To spot great property managers, look out for agencies with great reviews, appealing contracts, and low vacancy rates. These attributes show care, professionalism, and keen business acumen.
Great property managers also approach risk by having insurance that covers a variety of bases. This way, owners and tenants are all well protected.
If you're looking for a Portland property manager that ticks all these boxes, look no further! Check out the scope of our services and find out how we can help you today.