Owning a rental property in Columbus, Ohio, can be a lucrative way to earn passive income and diversify your portfolio, but it’s not without its challenges and commitment. Self-managing rental properties requires owners to be quite hands-on at times (for example, who’s going to field that 4a.m. maintenance emergency call? Yep, you).
To free up their time and reduce some of the day-to-day stress of managing a rental property, many owners choose to partner with a property management company. But it’s not just reducing time and stress that a PM company does for you. Good companies can also save you money and increase your net operating income (NOI).
If you’re considering hiring a property management company, it’s important to ask good questions right away so you can identify if the business’s services and philosophy align with your goals. Here are a few to start with.
Questions to Ask a Property Management Company
- What range of services do you provide as part of your Property Management Agreement (PMA)?
While leasing, rent collection and maintenance are the three major categories a property manager handles for you, there are a lot of other things you may not realize a property manager is responsible for.
To see a full list of those items, it’s important to review the PMA. Examples include things like tracking all financial transactions and providing a monthly accounting statement and annual report for your review and tax use. When interviewing a potential PM company, it’s important to know upfront what is included in their range of services (and the associated costs).
- How many units do you currently manage?
When you hand over property management responsibilities to a third party, you’re doing more than just offloading things like maintenance and repairs. You’re also entrusting them to manage the relationship with your unit’s residents and thereby your investment. This is important. You want high-quality tenants, which means you also want a management firm that can provide this high level of ongoing service. Businesses that are established and managing several hundred units have the systems, processes and – importantly – staff in place to offer this type of elevated service to you and your tenants.
- How long have you managed investment properties?
This speaks to the kind of quality and service you can expect from a property management company. Inexperienced businesses, though they may be highly motivated to do right by you, simply haven’t had time and experience to refine their processes.
- Is your property management company licensed?
You should only work with a property management company that holds a real estate brokerage license and is insured.
- Do you personally own investment properties?
Property managers who have their own skin in the game know what it’s like to be a property owner. This puts them in a good position to offer advice and services that they also would expect as an owner.
At RL Property Management, we offer full-service property management services for single-family and multifamily investors in the greater Columbus, Ohio area. With us, your tenants can expect exceptional service and owners can expect a high level of return. To ask your questions, please give us a call at 614-725-3059.
