ReadWrite
Published in

ReadWrite

Property Management Companies Need More Than Just Fancy Tech Tools

Do you own a property or multiple properties that you rent out? Whether your properties are commercial or residential, renting them out to tenants will typically be much easier if you enlist the help of a good property management company. A property management company can assist you with a range of landlord and property tasks. These may include (but are not necessarily limited to) collecting rent, screening potential tenants, and performing repairs and maintenance.

However, it’s important to remember that not all property management companies offer equally impressive or useful services. You need to carefully evaluate your options when choosing which property manager to hire. Don’t be fooled by companies that advertise their use of the latest tech and mobile apps. While technology plays a significant role in property management, it takes more than tech to run a good property management company.

Listed below are seven factors to consider when choosing a property management company.

1. The company makes use of tech-based innovations.

Technology alone is not enough to compensate for poor service. You shouldn’t necessarily work with a company simply because it’s the one from your list of options that makes the most extensive use of new tech innovations.

That said, it’s critical that a property management company leverage technology to some degree as a means of attracting and satisfying tenants. Luckily, the ways in which a company can effectively do so don’t need to be particularly remarkable or costly.

For example, today’s tenants prefer being able to pay their rent online. This is much more convenient than mailing in a check or delivering rent directly to a landlord every month.

Thus, you should look for a property management company that uses technology to make tenants’ lives easier. Green Residential in Houston, Texas, is an example of a property management company that leverages technology to support its clients.

At a minimum, your property management company should utilize tech for collecting rent online. The best rent collection software will require that tenants pay their rent in full. No partial payments can be accepted. The software can also automatically deduct rent from a tenant’s bank account…with their permission, of course.

2. You’re impressed by their effective marketing.

One of the best ways you can determine if you should work with a particular property management company is to assess its marketing content as if you were a prospective tenant.

When reviewing a company’s marketing materials, try to step out of your mindset as a customer. Think about the content as if you were someone considering renting the properties being marketed to you.

Does the marketing content make a property attractive? Why or why not? By merely thinking about how a company markets its assets from the perspective of a future tenant, you can get a clearer sense of whether a company can be trusted to market its properties effectively.

If you wouldn’t rent the properties as advertised by a property management company, you might struggle to fill your vacancies with that company.

3. They have a commanding familiarity with the area.

It generally helps when your property management company has a reasonably extensive history of managing properties in the same area as your rental. Property managers who know the area will be more likely to understand what tenants in that particular region want. This can help you find the ideal tenants for your properties much faster.

For instance, if your property is in a rural area where having well water is a priority, your well should be a key feature highlighted for every prospective tenant.

Likewise, if your area is a popular destination for families, your property management company should be marketing your property to families. The same applies to attractions such as museums, parks, monuments, and job opportunities.

4. Their management techniques demonstrate versatility.

The services a property management company offers can vary from one company to another.

Naturally, what’s most important when hiring a property manager is to identify a company that’s genuinely reliable. However, if possible, you should hire a reputable company that also offers numerous services that not all property management companies may provide.

The more work a property manager can take off your plate, the less time you will have to spend on tasks that may distract you from your other sources of income.

Obviously, you must look for a company that offers the essentials. These include rent collection and eviction services. That said, it’s also helpful if your property manager can assist with other tasks that renting out a property may involve. These may include conducting inspections, background checks, etc.

5. They have extensive knowledge of state and federal housing laws.

Violating state and federal housing laws can get you into hot water fast. All it takes is one complaint to HUD or your state’s attorney general’s office to initiate an investigation.

If a tenant reports your property management company to a government agency, and the complaint has merit, you’ll experience some of the fallout. While your property management company will likely be required to deal with the situation, you can still get in trouble as the property owner.

When a situation comes to a head and causes a tenant to move out, you’ll end up having to fill a vacancy. If your property management company violated the law, you probably won’t be using them to fill your vacancy…which means you’ll be on your own.

6. The company enjoys great tenant relationships.

Although many landlords are moving to a hands-off business model, there still needs to be an interaction between landlords and tenants. A good property management company will have great relationships with its tenants, even if all communication takes place online.

When a property management company has a great relationship with its tenants, you know you’ll be in good hands with their services.

Nothing creates problems and lawsuits faster than bad landlord-tenant relationships. You want to avoid these problems at all costs. When tenants resent their landlords, they’re more likely to destroy property. They may withhold rent, violate lease terms, and resist legal evictions.

7. They’re not afraid to evict tenants (legally).

One sign of a great property management company is that they don’t tolerate disrespectful tenants or any kind of nonsense. You want a property management company that holds tenants to account for their lease agreement. They must be willing to enforce the agreement no matter what.

Evictions are never fun for anyone. While you want to avoid evictions, you need a property management company that isn’t afraid to give bad tenants notice. The longer you hang onto a problem tenant, the harder it will be to get rid of them.

When considering a property management company, ask them how they handle evictions. Ask them to explain the state laws to you so you’ll know they are informed. If they can’t explain state eviction laws, you may want to find another company.

Tenants who are illegally evicted from their homes often win the right to remain in the unit indefinitely during the court hearing. If this happens to one of your rental properties, your tenant will only be harder to get out of, even for legal reasons.

Take your time choosing your property management company.

There are many property management companies to choose from. However, you can’t afford to make the wrong choice.

Always verify each potential company whenever possible. For example, check out their Better Business Bureau (BBB) rating. See if anyone has filed a complaint against them.

Take your time. Identifying the right one for your needs can make a big difference in how lucrative your rental property may be. Hopefully, the advice above will make finding the ideal company much easier.

Image Credit: Pexels; Thank you!

--

--

--

ReadWrite is the leading media platform dedicated to IoT and the Connected World. We work with the industry's top technologies, thinkers, and companies to tell the stories that drive this world forward.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
ReadWrite

ReadWrite

The latest #news, analysis, and conversation on the #InternetOfThings

More from Medium

What to Do When an Employee Quits and You Didn’t See It Coming

The Link Building Traps That New Webmasters Often Fall For

Dairy farm to withco’s table: From founding VTS to transforming small business commercial

Finding Mentors: Do you want to feel better or get better?