When you begin your search for an investment property you’ll want the help of a good reliable investment property company. This is especially true if you’re looking at properties in an area other than the one where you live so you can rely on the company’s experience in finding good properties in the best locations.
There are a large number of investment property companies out there, all claiming to be the best. How do you narrow down the choices to find a company with a good reputation and the experience to find the best investment property for you? The process is just like finding any other business: You need to do some footwork to learn all you can about any company you think would be a good partner.
Would you take your favorite car to a rookie mechanic? Probably not. You would probably prefer to hire a mechanic with experience servicing your type of automobile. The same logic applies to an investment property company. You should look for a business with experience in your target market. You need the focused expertise of a local company with an owner who knows not only the local real estate market, but who also knows the city. Use this knowledge to find the right turnkey property in the right neighborhood with good schools and amenities, which in turn will help attract good tenants.
Once you think you’ve found the right company to help with your search for a turnkey rental property, ask for names of several clients that you can contact. Follow through and talk to them about their experiences with the company. In addition, you can check court records and the Better Business Bureau to see if any legal action has been taken against the investment property company or its property management service.
While you’re checking references, this is also a good time to verify that any claims the company makes about past successes are true. Look over records for maintenance costs, property repairs, and occupancy rates for several turnkey properties the company has sold or managed to make sure they match what the company owner states.
Investment property companies with an in-house management service are more likely to provide reliable management of your property than a business that does only property management. Why? They know that if you are satisfied with their service, you’re more likely to be a return customer when you’re ready to purchase your next turnkey rental property. However, make sure that the management wing of the business is well-qualified to handle your property. Check for licensing, the number of properties each manager handles, and ask for references specific to property management. Look for efficiency in its operations—for example, a large company should have separate departments for collecting rent, finding tenants, and property maintenance.
Don’t forget the most important aspect of choosing an investment property company: communication. Communication between you and the company that flows smoothly and quickly is critical to the success of the partnership. Ask about their procedures for keeping in touch. Do they send monthly or quarterly statements to property owners? How do they handle delinquent tenants and repairs? Will they keep you informed of developments? Be sure the company will comply with your requests in all these matters. You need to feel comfortable with your investment property company in order to have a successful experience with them.