The average return for residential real estate from 1976 to 2021 was 10.3% annually, which is better than the S&P 500. If you want to make solid investments, real estate property is an ideal choice. You can buy a property and rent it out for as long as you own it, allowing you to generate recurring income over an extended period. It can, however, involve a lot of work. One of the best ways to make things much easier for yourself is to hire a local property management company.
They’ll be able to take care of your property for a portion of the rent, so you can simply relax and let the profits roll in. There are a lot of property management companies available, so how do you find the right one?
In this guide, we’ll cover 7 tips to help you choose the right local property management company. Keep reading for more.
1. Do Your Research
There are plenty of property management companies around, but they’re not all the same. Some offer different services, and the quality of those services can vary. You want to make sure you go with a property manager that will do everything you need.
Take the time to compare different companies, and make sure they offer all the services you require. Some focus more on commercial property, so if yours is residential, you should only go with a company that has plenty of experience dealing with residential real estate.
Reedy & Company has over 100 members of staff and currently manages over 3,500 properties. We can deal with single and multi-family properties, so whatever size your rental property is, we’ll be able to take care of everything for you.
2. Go Local
Even if a property management company seems perfect, one that isn’t local will lack certain insights that could be very important. It’s always best to go with one in the same area as they’ll have a better understanding of the local real estate market.
This will ensure you have a manager who can manage and market your property effectively. Being nearby also means they’ll be able to respond quickly if there are any issues so your tenants won’t be stuck in an urgent situation.
3. Ask About Their Marketing
One of the key roles of a property management company is finding tenants. This can be more difficult at some times than others depending on the state of the market.
If there isn’t a huge demand, it will be harder to find tenants. At times like this, effective marketing is essential. By marketing your residential property well, there will be more people wanting to view it, and more people applying.
As a property owner, you want to find good tenants. The more you have to choose from, the easier it will be to find someone that’s a perfect fit.
4. Check Their Experience
There are various types of property, and you want to make sure you go with a company that has experience dealing with ones like yours. While a relatively new company can be quite good, going with one with plenty of experience can give you peace of mind as you can be confident that they know what they’re doing.
Reedy & Company has over 40 years, having managed all kinds of properties throughout Memphis, TN. Our property managers are incredibly knowledgeable, so they’re ready to hit the ground running with any property that you need managing.
5. Focus on the Relationship
For most products or services, you don’t need to form a bond with a company – you’re simply paying for what you want. Property management, however, is a little different.
A property manager is looking after what is probably your most valuable asset, so having a good relationship with them is essential. It’s also worth noting that in a better relationship, a property manager may go out of their way to be as helpful as possible if any issues arise.
6. Emphasise Communication
Communication is key, and this should be a focus from the start. You should be open and clear about what you want – this will make it far more likely that you’ll get the results that you’re after.
In a good relationship, you’ll feel comfortable asking questions and making requests. Being in regular contact is helpful as you’ll always know what’s going on with your property. This is even more crucial if there are any problems, as you’ll want to know as soon as possible.
Some people are happy to sit back and let property managers take care of everything. Others, however, like to be a bit more involved, so let your property manager know where you stand. Tell them if you want to be contacted when any problems such as late rent or maintenance issues arise, for example.
7. Give Feedback
Every property is different, and the same goes for property owners. Even the most experienced property manager might have room to improve the service they provide for you.
Don’t hesitate to let them know if there’s anything you’d like done a little differently. This will ensure everything works in a way that suits you as perfectly as possible.
Professional Local Property Management
Owning a rental property can be great for your income, but it can also be a challenge. Hiring a local property management company is a great way to simplify things, and if you invest in other properties, that difference will become even more noticeable.
Reedy & Company is one of the leading property management companies in Memphis. Take a look at our property management page today to see more about how we can help you.
