When you have the choice to go out for dinner, do you prefer to go to a local bistro or a big chain restaurant? When you purchase your produce, do you prefer to buy it fresh from a local farmers market or your chain grocery store? We make choices every day based on what we think we may get as a result. For instance, homecooked freshly prepared meals prepared at the local bistro or pre-cooked, frozen dishes from the big chain restaurant.
When it comes to choosing a property management company to handle your portfolio for you, there is no difference. You want a company that is going to offer you the best approach to handling your properties. Your property manager should handle:
- Filling your vacancies and marketing your property
- Handling all paperwork, tax documents, and rent collection
- Maintain your properties, routinely and during emergencies
In other words, your property management company is there to ensure your property is cared for and well-maintained so you can focus your time and attention on everything else in your life – including investing.
But, how do you know what size property management company is best for you? How do you know which will be best able to meet your needs? Let’s take a look.
Large Companies: These are the property management companies that handle over 300 doors, or properties. Streamlined service is often what you will find here. You can rest easy knowing that your properties are cared for, but you won’t likely get any warm, fuzzy feelings when you walk in the door. In addition, these companies usually have locations all around the country – and often are unable to establish themselves closely into local communities.
Medium Companies: Management companies that fall into this category generally have between 200 and 300 properties. They don’t quite have the volume of the large companies, but they do offer services that are streamlined. Unfortunately, again, the personal touch and intricate community knowledge are often lacking.
Small Companies: Any companies that manage less than 200 doors – properties – are considered small. And, when you think of whether or not this option may be best for your portfolio, there is something you should keep in mind: Small companies can offer up more personalized service. They will very often know who you are when you call, know your properties, and know your tenants. And, smaller property management companies typically have greater ties and stronger rapport within the community.
You want a manager who will be able to care for your property as you would – or even better, right? So, when you make the decision to hire a property management company, then you need to be sure you are choosing the right one for your needs.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out atwww.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube, Bigger Pockets and REI CLub and LinkedIn.