Choosing a Property Management Company

Choosing a Property Management Company

As far as “bang for your buck”, finding a reliable property manager can be one of the best investments you can make in your real estate career. Taking the time to research and develop a relationship with a reputable property management company can take care of a lot of the pressures and headaches involved with investing in rental properties.


Here are a few of the top reasons for going with a dedicated management company rather than the DIY option, followed by a few things to look for when you hire a company.


Finding and Screening Tenants


Finding tenants for your property is the most important part of being a real estate investor. No tenant means no cash flow. Worse than having no tenant is having a bad tenant that never pays rent on time or destroys your property.  A good property management company has resources dedicated to not only marketing your property to prospective tenants but they regularly run credit reports, manage applications and have the experience to evaluate any pertinent information to find the best tenant for you.


Quashing the Phone Calls


Time waits for no man, and neither do broken air conditioners, leaky pipes, or dead hot water heaters. Things happen and statistically the more properties you own the more problems will pop up at all hours.  You don’t want your phone ringing constantly. Let a property manager take the calls.  A good company will have a staff to man the phones with resources to take care of maintenance issues quickly and efficiently.


Collecting the Rent


It’s the 15th of the month and one of your tenants is delinquent on the rent. That’s a headache, but what if your property is in another state? You miss their calls, they miss your calls. Worse, they just don’t answer the phone at all. When you finally get them on the phone, they insist the check is in the mail or that they will send it first thing in the morning. You have no choice but to wait or take legal action. A local management company can visit the property and get a much better idea of what the issues are. Also, a good company only takes their percentage from the rents collected so they have an interest in a high rent collection rate. Let them fight the collections battle for you.


Keeping Up with the Rental Market


Unless you are 100% invested in managing rental properties you probably don’t say current with every market trend. That’s what property management companies do. They will be able to maximize the rent for your properties without pricing them out of the market, and know how much rents need to increase at the end of a lease term.


Changing Tenants


There is a chance that even your favorite tenants will eventually move out. A lot has to happen in the time between one tenant moving out and marketing the property for a new renter. Carpets need to be cleaned, walls painted, and repairs made. All of this has to be done well and quickly. Finding licensed contractors in every location in which you own property can be a logistics nightmare. Property managers should already have these vendors sorted and a great company will have them on staff. This insures that you get quality work done at a reasonable price.


Court Dates


No one likes going to court, but unfortunately, it’s sometimes unavoidable when dealing with rental properties. If you must evict a tenant for non-payment then you have to either hire a lawyer or represent yourself in court. Once again this is a much bigger problem if your rental is out of state. Let a property manager take care of this for you. A good company deals with these situations all too often and has the resources and contacts to handle it efficiently for you.


Your Time


Investment properties are usually only one stream of income for most investors. Most investors are business professionals or retired and real estate just makes up a portion of their total portfolio. Your time is not best spent on the phone with tenants, approving applications or going to court when you could be focused on growing your portfolios, managing other investments or just relaxing. In time savings alone, hiring a professional property management team is a great investment.


Things to Consider when you hire a Property Management Company


Is the company professional?


Don’t just talk to someone on the phone or read their web page. This is part of your investment. Do your best to visit the company in person.  Get a feel for their operation and how they conduct business.


Are they accredited?


Look for the Better Business Bureau logo. Even if they have the logo check with the bureau itself. Read reviews. Remember that even within the BBB there are ratings. You want a company that rates an A+


Are they a member of NARPM? The National Association of Residential Property Managers is an association designed for real estate professionals who know first-hand the unique challenges of managing single-family and small residential properties.



Is the property manager also a licensed real estate agent?


Are they licensed in the area where your property is located? If so they could help you to sell the property as some point or assist you in adding to your portfolio



Taking the time to build a relationship with a reliable property management company will pay off in the long run. It makes sense to leave the day-to-day management of your rental property to someone that has systems already in place to just that. It’s an investment that will pay off in saved time, effort, and peace of mind


Memphis Investment Properties

Address: 4701 Summer Ave
Memphis, TN 38122

Telephone: 901-244-5820

Fax: 901-842-0803