We always take an expert opinion before making an investment and that has always been the general norm in any industry and it’s no different for Real Estate investments.
Hiring the right property management company is important as they not only provide an experts opinion but they also help you execute your plans and reap the benefits on your investment.
Real estate investments are generally high-value, capital-intensive investments worth in Lakhs/crores of rupees.
It makes perfect sense to be wise and hire a team who has the capability to take care of your investment as their own.
Here is a quick guideline on the factors you must consider before handing over your property keys to a property manager
How to choose the right property management company:
1 Sublet Rights If your property management company’s model is to sublet your property, then they can place tenants without your approval. This gives them more control than what is necessary.
2. Security Deposit Amount A good management company knows that the security deposit should cover damages to your property and rent arrears. This could amount to about six months of rent. If the company takes a deposit worth only 2 or 3 months’ rent, you need to be careful because this amount will not be enough in case the tenant causes damage to your property.
3. Control over Security Deposit Beware of the property management company wanting to keep a significant share of the deposit. Make sure that you talk to them and retain a majority share of the deposit, to have more control over proceedings.
4. Tenant Selection Process If the company refuses to have the tenants approved by you, then that gives you very little control over your property. Make sure that you have enough power to veto tenants that you feel can be tough to handle.
5. Tenant Information Even if you allow the management company to find tenants for you, you need to ensure that you have their contact details. In case things go south with the company, you should still be able to communicate with your tenant, and smooth out any issues they may have.
6. Control over Expenses In case the company spends money on the property without your approval and does not send the records over to you, you need to be wary. A good property management firm will always run the financial records by you and get your approval.
Answer the following questions and you will be able to rate your prospect Property Management Company or even a property manager out of 5
If the answer to all the above questions is YES then you can rate the property management company 5 on 5 and be rest assured that they will take good care of your property.
If your answer is no for some of the questions then ensure you retain all legal and financial rights pertaining to your property before proceeding with the company you have chosen.
It’s ideal to choose a company that lets you answer yes to all the above questions.
Some companies will promise to get you a guaranteed rent every month. However, it would help if you accounted for the fact that in certain circumstances, that might not be possible. This not only leads to the downfall of the company but it pulls you down with it.
For instance, the COVID-19 has brought out so much uncertainty, the best way to protect yourself is to minimize risk and maximize control over your property.
The purpose of this guideline is to safeguard your interests and help you understand how you can keep your property safe. We recommend you go through these guidelines before choosing a property management company and reduce the chances of issues cropping up.
I can proudly say that PropertyAngel fulfils all the above guidelines.
PropertyAngel is a Property Management Company with Strong SLAs to measure performance
As a new age property-tech company with 860+ verified properties under our wing, we are deeply driven by Customer Happiness & Customer Transparency
Our goal is to maximize your rental income and to minimize your stresses.
Benefits of signing up with PropertyAngel:
Want us to manage your property?
Reach out to PropertyAngel or call us at 91-80-47095974 / 91-7406484455