Property Management Companies: What You Need To Know

Property Management companies come in all sizes and shapes. It seems that many of them are a small business or family business. If you have a large portfolio of properties or a large multi-family income property you can attract a variety of companies because many are paid as a percentage of rental income. If you have a single family home or a smaller rental property its just not that attractive to many companies because they won't see much income from it and you may not get the attention you deserve. You may find better service from a smaller property management firm.
How Do You Find Them?
Check with the standard sources such as referrals. You can also ask:
Local Real Estate Agencies - They may have a local property manager they often recommend to or perhaps one of the agents also manages property.
Check with your local Property Management Association or apartment association for a list of local firms
In rural areas the State Apartment Association may be a good resource for a firm near you.
What Do You Look for In a Management Firm?
Valid Brokers License: In may states a brokers license is required to operate a property management company. You can check to with the local dept of real estate to validate it and see if it has ever been revoked or suspended.
Management Fees: Property Management fees are generally a percentage of rental income. Fees can vary from company to company and you should shop around. Expect fees of 5% or more as a percentage of rental income. If you own a single family home or a duplex that has a low rental income number, you may get quoted a flat rate.