If you are thinking about investing in rental property, you may have also considered hiring a property management company to take care of the day to day business of finding the right tenants and maintaining the property. If so, it is important that you find the right manager for the job; a manager you can trust to keep your property investment secure and running smoothly.
If your rental property is in the state of Arizona, of course, you would need to hire a property manager in that state – a company that knows all the local laws, bylaws and accepted ways of doing business in the local area. Once you have found a property manager in Arizona, it is also important to have an attorney look over the agreement and other legal documents you will need to sign so that your property and investment is protected from any legal implications that may arise.
Acquiring Property Management
When considering hiring a company for property management, there are four main areas of responsibility the company will need to take care of. By having a good understanding of them yourself, you can be confident that you are selecting the right company for the job.
Main Responsibilities of Property Management Companies
- The first are the marketing and financial aspects. The new property manager would be handling the marketing and advertising of your property. It is important to look over their previous track record in this area. What is the vacancy rate of the properties they currently manage? Are their tenants carefully screened and paying rent on time with no damage to the properties? On the financial side, the budget for maintenance, advertising, management fees, collecting and depositing rents, etc. need to be considered in order to keep a good balance between revenue and expenses.
- The property manager also needs to select the right tenants for the property and keep them happy with the rental arrangement. Will the stipulations of the rental agreement be followed as closely as possible? Will maintenance and repairs be taken care of quickly and in a competent manner? Will the rent be collected and deposited on time?
- Third is the upkeep of the grounds and general area around the property. Does the property management company have capable landscaping contractors to keep the property looking nice? Will repairs to parking lots, power lines and other outside tasks be completed in a timely manner? What is their relationship with local utility companies like?
- And last but certainly not least, does the property management company take care of the administration and risk management aspects of managing their client’s properties? How proficient are their record keeping, accounting and bill paying or tax records systems? Do they have proper privacy systems in place to protect your and your tenants, private, personal and business information?
Other Important Factors to Consider
Does the manager respect and support Equal Housing Opportunity? Is the manager willing to sign an agreement stating they abide by fair housing laws in Arizona?
What special clauses are in the agreement? Will the manager be held liable for any legal cases resulting from their own negligence while managing your property?
The above is just a primer of things to consider when looking for Property Management in Arizona. Every situation will be different depending on what type of property you are seeking management for; local laws and by-laws; even the neighborhood and surrounding properties play a role. Be vigilant about the property management companies past and present dealings and the more questions you ask, the better.