Buying Florida investment properties when you live out of state can come with a lot of questions for any new investor. Not physically being able to manage the in-person day-to-day activities of a property will require hiring a property manager. Not all property management companies share your ideas or opinions of how your property should be managed. There are generally 5 important questions to ask a property management company to find if the company you have selected will be the right fit for managing your investment property.
Researching Property Managers
Just like in every industry, there are good companies, bad companies and great companies. The main goal of any company should be to help maximize the returns on your property and to help manage the day-to-day responsibilities by being your approved landlord. You should never feel like you are being interviewed when checking out a property management company. You should always control the interview and hire the best if you want to have a successful investment property.
1. How Many Evictions Do You Process Each Year?
This is an important question and one that will prove the effectiveness of a property management company's practices. A high turnover with tenants can reveal flaws in the management style or the approval process for new tenants. A high number of vacancies in a growing area could be a sign that a management company is not delivering a good return for investment properties.
2. How Do You Handle Late Rent Payments?
Sine rent collection is the lifeblood of your investment property, knowing what procedures are used when rent payments are late is important. Some companies could allow a grace period for late payments and some might enforce more advanced rent collection tactics as little as 10 days after a missed payment. Keeping money flowing into your property without a high tenant turnover is the key to success.
3. How Often are Reports Generated for My Property?
Knowing what you should know about the success or failure of your property is important and should be delivered regularly. Getting access to weekly, monthly or quarterly reports is essential for evaluating the sucess of the property manager and your property. Not every company creates reports on a routine basis. You should never be without important information when it comes to your property.
4. How are Repairs and Maintenance Handled?
Finding quality contractors when needed can be a challenge for you living out of state. It is important to know if a property management company works with a private team of contractors or hires the first person that says he or she is available. Getting licensed contractors that have liability insurance will make sure that your property is protected from damage or injuries to workers. Repairs and upgrades are essential to keeping your property strong on the rental market.
5. How Much Do Your Services Cost?
Price is important and should be evaluated before signing any type of agreement. The price varies between companies and you should know what other companies are charging for similar services. The payment schedule can be monthly or quarterly and can be as high as 20% of the monthly rent collected. Know exactly what you are paying for and decide if it is worth the price to keep your property expertly managed.