Dodging the Property Management Traps: 10 Warning Signs to Watch Out For
Owning rental properties can be a lucrative investment, but it also comes with its fair share of challenges. One of the biggest pitfalls is choosing the wrong property management company. A bad property manager can cost you money, time, and headaches.
To help you avoid this trap, here are 10 warning signs to watch out for when choosing a property management company:
1. Poor Communication
Communication is key in any relationship, and this is especially true when it comes to property management. A property manager who is unresponsive or slow to respond to your inquiries is a red flag. You need to be able to communicate easily with your property manager, especially when there are problems that need to be addressed.
2. Lack of Experience
Experience is another important factor to consider when choosing a property manager. A company with a lot of experience will be more familiar with the local market and will be better equipped to handle any problems that may arise.
3. Unprofessional Behavior
A property manager who is unprofessional or rude is a big turnoff. You want to work with someone who is courteous and respectful, both to you and to your tenants.
4. Hidden Fees
Some property management companies try to make up for low fees by charging hidden fees for everything from maintenance to advertising. Be sure to read the contract carefully before you sign up with a property management company so that you know exactly what you’re paying for.
5. No Online Presence
In today’s digital world, a property management company without an online presence is a major red flag. A good property manager will have a website and social media accounts where they share information about their services and properties.
6. No References
If a property management company can’t provide you with references from past clients, that’s a bad sign. Ask for references and follow up with them to see what they have to say about the company.
7. Too Good to Be True
If a property management company is promising you the moon, be wary. No property manager can guarantee that your properties will be rented out quickly or that you’ll make a lot of money. Be realistic about your expectations and don’t fall for promises that seem too good to be true.
8. No Tenant Screening
A good property manager will screen tenants carefully before renting to them. This includes checking their credit, criminal history, and rental history. A property manager who doesn’t screen tenants is putting you at risk of having problem tenants.
9. No Maintenance
A property manager is responsible for maintaining your properties. This includes everything from fixing leaky faucets to mowing the lawn. A property manager who neglects maintenance is costing you money in the long run.
10. No Insurance
A property manager should have insurance to protect you from liability. This includes insurance for property damage, liability insurance, and workers’ compensation insurance. A property manager who doesn’t have insurance is putting you at risk.
Conclusion
Choosing the right property management company is essential for the success of your rental property investment. By watching out for the warning signs listed above, you can avoid the pitfalls and choose a company that will help you achieve your investment goals.
If you’re considering hiring a property manager, be sure to do your research and choose a company that is reputable, experienced, and professional. You’ll be glad you did.