As a landlord in Chicago, it’s important to know the signs of a great property manager. Even if you don’t need their services today, there might come a time when you do. In our latest post, we will explore the signs of a great property manager who can help increase the value and income potential income from your Chicago investment property!
When requiring the assistance of a property manager, hiring the right one can be a tough decision. How can you be sure you are finding one who is going to work as hard as you need them to? Not all property managers are the same. You should look for a property manager who will provide the services you need. Some landlords only need the basics, while others need a full-service team. Keep reading to learn how to find the right property manager for your property in Chicago or the surrounding areas!
Ask Around
Who are your fellow investors trusting to manage their properties? When you join investment groups and network with other like-minded professionals, you will be able to ask these very questions. You’ll get honest feedback from people who have personally used their services. Ask for referrals, recommendations, and read reviews. Don’t just count on what landlords have to say, but look at the tenant’s impression too. Happy tenants mean less turnover and more profits.
Research Them
You can do a lot of research on a company before choosing them to represent you. What do their ads look like? IS that how you would like to see your property represented? How long does it take for them to place a tenant? How thorough are their background checks? How do they answer the phone? How will they screen tenants? Are the professional? There are lots of things you will want to ask about a property manager before hiring them. Make sure they hold the proper licenses and meet all of the requirements to legally manage your property.
A few things you’ll want to check out before enlisting the service of a property manager in Chicago include:
- The comprehensiveness of their landlord/lease agreement
- The systems and software they use to engage with clients, for their accounting, maintenance schedules
- Who are their trusted contractors and how will repairs be cleared with you?
- How often will they inspect the property? And what do they look for?
- Will they handle evictions if needed?
- Are they well versed in rental laws, regulations, and tenant rights?
Remember, this is the company you are trusting to represent your property and help you to achieve the highest profits possible. Their systems should be efficient, comprehensive, and based on experience. Doing your homework now will help to ensure you are hiring the best company for the job.
What To Ask Them
How many properties are they currently managing?
How many employees do they have managing these properties? You’ll want to make sure that the company you hire has the time and manpower to properly manage your portfolio. You should also make sure that the properties they are managing have high tenant retention.
How do their fees work?
You can expect to pay around 7-10% of the collected rent to your property manager. Before you sign an agreement, make sure this money is only due if there is a tenant in place. You do not want to pay a property management company for managing an empty unit. The price for services should be clearly stated ahead f time, along with exactly what that fee will include.
How is their reporting handled?
You will want to know if the accounting is handled in-house or forwarded to a third-party accountant. You should know when to expect reports regarding your properties and what these reports will cover. The reports you receive should be comprehensive and tailored to your specific portfolio. Your property management team need to exceed your expectations in a number of ways, this includes the numbers!
Shop Around
Once you have narrowed down your search to a few highly referred and well-presented companies, it is now time to shop around. Negotiate contract terms and let the management companies know you are looking for a long term manager who can deliver on service at the right price. You’ll be able to negotiate a better rate when you know what you are doing and what the competition is charging. Make sure you know exactly what you are looking for in a property manager so your needs will be put at the forefront from day 1.
While finding the right property manager may seem like a lot of work up front, the benefits will be well worth it. Having the right person managing your properties will make a huge difference in the overall success of your real estate investment.