You've made an excellent decision to hire a property management company for your rental properties. You've done your research. You know what you need from your company. You're ready to begin working with them.
Any new relationship takes some getting-to-know-you to make it successful. This involves asking questions, talking things through, and making adjustments to work well together. Your new relationship with your property management is no different than getting to know a new friend.
We're here to help your new property management relationship go smoothly for you. Before you sign on the dotted line, watch out for a few common mistakes landlords make when working with a property management company for the first time.
Mistake #1: Assuming Too Much
Don’t assume you know what you're getting after an initial conversation. You might think you're getting full service when your company thinks they're only providing tenant screening services.
Most property management companies offer a range of services for any budget. If you're a first-time landlord, consider going full-service with your property management company. Their expertise will ramp up the profitability on your properties quicker than you can do it on your own.
Be sure you walk through everything included in "full-service." Does that include:
- Listing Services
- Tenant Screening
- Move-in and Move-out Inspections
- Rent Collection and Payment Processing
- Eviction Protection
- Real-Time Reporting
Within those items, discuss exactly what you get. Listing services should include professional photos and showing homes online and in person. Tenant screening should consist of finding applicants and running all background and financial reports to approve a tenant for your properties.
Collecting rent should also include processing payment and delivering it to you. Without detailed income reports available in real-time, you won't know if your properties are appropriately managed.
Outline clear expectations and you'll benefit the most from your property management company.
If you only need a little help, be sure your contract is clear on the specific services you want. Also, be clear about the price for limited services.
Don't agree to full-service pricing when you only want your property management company to handle leasing services and tenant screening. When choosing select services, be sure your property management company doesn't sacrifice any quality in their services for you.
No matter your level of services, your property management company should always provide top-level service.
Mistake #2: Don't Be Cheap
You might feel that a property management company is an additional expense more than an asset. You can save money by doing some things yourself.
However, to get the most out of property investment in Michigan, trust a property management company to handle the most time-consuming processes and headaches of being a landlord. You'll find this actually increases your bottom line.
The fee you'll pay to your property management company is far less than the cost of your time freedom. You don't want to spend nights and weekends doing repairs on your properties, collecting rent, or navigating laws and paperwork to run your business legally.
You also don't want to get the calls in the middle of the night when the water heater bursts in the basement of one of your homes.
With a property management company managing your properties and tenants, they shoulder these and other burdens for a reasonable fee.
You'll also benefit from economies of scale and technology efficiencies. As you gain confidence in your role as a landlord using a property management company, you'll be able to add more properties to your portfolio. More investment properties help you make more money.
Mistake #3: Stay Involved
When you hire the best property management company for your Michigan properties, it's tempting to sign the agreement and let them run with it. You should feel comfortable and trust your company to handle your properties. But don't disappear completely.
Be sure you stay involved. Communicate regularly. Review reports. Ask questions. Confirm your payments go through to your bank account.
Your property management company is your investment counsel. Work closely with them to get the most out of their expertise.
- Should you add more properties?
- Are there any properties that are dead weight to your portfolio?
- Is it time to raise the rent?
- Is it time for any upgrades?
- What amenities should I offer to attract better tenants?
Your close connection with your property management company will help you make the most of your investments.
Trust the Best Property Management Company in Michigan
Owning and managing property in Michigan can be very profitable. When you find the right company, it's a great relationship that helps grow your investment income.
JMZ Management is here to work closely with you. We provide the services you need with no sacrifices to quality--no matter the size of your budget. We have full-service options down to specific services to help you get the most from your investment properties.
Contact us to start your partnership with us today, and download our free guide, "The Guide to Finding the Best Michigan Property Management Company."