One of the most important decisions that you would made, as a property owner is the hiring of a property management company. This is particularly true for apartment buildings that require a lot more attention than other type of properties. This is why selection amongst the apartment management companies is a tough choice for many people.
The most important thing to understand about apartment management companies is the simple fact that not all companies are created equal. Number and methodology of service delivery is what distinguish a top notch company from a mediocre one.
The thorniest issue for property owners is the matter of fees. Companies charge anywhere between 5% to 20%. The problem with this wide range is that there are no set industry wide standards for property management fees. This is why companies could charge what they think is suitable remuneration for their services. When selecting a company, it pays to shop around for the lowest rates.
Any contract between a property management company and the property owner has two clauses that sour up the relationships. The first one is the termination of contract. This is an important clause as many companies charge a contract termination. The second one is the various fees that are charges for services like filling of the vacancies. It is important that both parties should engage lawyers who would go through the contract clause by clause and come up with a compromise that is the foundation of a long term relationship.
Maintenance is another area that is equally important for property owners and tenants. This is why it is important to determine the extent of the services that the company offers in this regard. Several companies hire external repair people for the repairs while others have their own crews for various maintenance tasks. It is important to determine the percentage of the maintenance bill that the company will charge to their fees.
Another important question that every property owner should ask is the list of items covered under the maintenance contract. Many companies do not include yard work or snow removal in their allocated list of maintenance activities. Thus, these tasks have to be paid by either the tenants or the property owner.
Paperwork is an important are where no property owner should compromise. Top rated apartment management companies maintain meticulous accounts and generate monthly, quarterly and annual statements. These statements include everything from tenants report to monthly expense report.
Finally, communication is one area that determines the nature of the relationship between the property owner and the management company. All to of the line companies maintain multiple communication channels that include phone and email. This way, both the owner and the management company could decide the issues that require immediate attention. Communication is an important factor and many owners value it above all other qualifications.
Once the right management company has been found, property owners could relax and let the professionals handle the job. This arrangement works best for both the parties.