There’s no denying that investing in a rental property in Phoenix, AZ is a great way to diversify your investment portfolio. Whether you want to fund your retirement or earn spending money, being a rental property owner offers many benefits.
That said, 31% of rental owners claim that finding a good property management company in Phoenix is a consistent source of stress. And with so many property managers to pick from, this source of stress becomes even bigger.
How are you supposed to know which property management company is best for you?
If you’re looking to hire a property management company in Phoenix, keep reading. Today we’re sharing all the best tips for picking the right company to work with that will meet all your needs.
How to Hire a Property Management Company in Phoenix
1. Get Referrals from Trusted Sources
The first thing you should do when looking to hire a property management company in Phoenix is seek out referrals. After all, people love to talk about their experiences with companies. This is especially true when they are bad. This means it’s likely you’ll get an honest opinion about any property manager you’re thinking of hiring.
You can check with the following trusted sources for referrals:
- Property owners
- Real estate investors
Just remember, you should never follow anyone’s recommendation blindly. Just because one person had a bad experience with a property manager doesn’t mean they aren’t worth considering. Do your due diligence before writing any one company off your list of possibilities.
2. Take a Look Online
Another great way to find recommended property managers in Phoenix is to look online.
Here are the best places to find property management companies online and how they help:
- Online Directories: You can search online directories that list nearby property management companies.
- Review Sites: Review sites offer feedback from other property owners and tenants. This gives you a realistic idea of what to expect when you do business with this property management company.
- Google Searches: Google searches are a great source of property management company information. You can find official company websites in seconds. From there, you can decide whether they have the services you need.
These days everyone is looking online for quick answers to their questions. If you’re in need of a property management company in Phoenix, the internet will bring up everything you could possibly need.
3. Interview Possible Candidates
Once you have a list of property management companies, it’s time to start interviewing.
Picking the best property manager for your rental is not always easy. Luckily, there are some things you can ask during the interview to help you with your decision:
- Experience in the rental property business
- Knowledge of federal, state, and local landlord-tenant laws
- Services provided
- Number of available property managers
- Number of properties managers handle at a time
- Management fee structure
- Amount of time that your property manager will dedicate to your property
Lastly, you’ll want to go with your gut feeling. There’s a chance your potential property manager has everything you want on paper. But that in-person impression you get will tell you a lot about whether they’re a good fit for you or not.
4. Review Licensures and Certifications
While interviewing possible property management companies, it’s important to review the company’s licensures and certifications.
Most states require property management companies to have a real estate broker’s license to show vacancies. To see if the company you’re considering is licensed, check your state’s Real Estate Commission.
Also, you’ll want to verify whether the property managers are certified with a trade organization. If so, you can trust that the manager is committed to the job of managing rentals. After all, becoming certified takes personal time and money.
Check these reputable groups to see if your property manager is certified:
- The Community Associations Institute (CAI)
- The National Apartment Association (NAA)
- The Institute of Real Estate Management (IREM)
- The National Association of Residential Property Managers (NARPM)
In the end, every state differs when it comes to property manager qualifications. Look into your state’s nonprofit National Property Management Association to find the rules for your region.
5. Set Clear Expectations
A property manager is typically responsible for the entire rental process from start to finish. This includes making your property rent-ready and advertising the vacancy. Not to mention screening tenants, drafting leases, and collecting rent.
The problem with property management is that there is no one size fits all job description. If you assume the property manager you’re hiring is going to handle all the tasks you don’t want to, you could end up very disappointed. During the interview process, you should lay out clear expectations. If the property management company you’re considering can’t meet those expectations, then it’s time to move on.
6. Understand the Management Agreement You’ll Be Signing
It’s not enough to hire a property management company in Phoenix that offers the services you need. After all, hiring a property manager is an investment. You don’t want to lock yourself into a contract and later find out there are hidden fees.
Before you sign a contract and hire a property management company, take the time to understand the terms. In addition, make sure that the contract you sign is in line with what was discussed during the interview. You’ll want to be sure you understand your role as a property owner. You’ll also need to know the role of the property manager assigned to your rental.
Here are some of the most important things to look for in your management agreement:
- Compliance with fair housing laws
- Hold harmless and cancellation clauses
- Monthly and annual accounting reports you’ll receive
- Insurance coverage that the property management companies holds
- Exact services that will be provided
- Fee structure outlined in specific details
Of course, there’s much more to be on the lookout for. But in general, the contract you sign should match your expectations.
Do you need your Phoenix, AZ rental property leased or managed? If you’re ready to hire someone to take some of the burden of managing a rental property away, contact us today and see how we can help.
At Real Property Management Phoenix Valley, we strive to take the hassle out of owning rental property. This way, you can enjoy the benefits of an investment property without having to do all the work. From tenant screening to rent collection, and lease renewals to maintenance, we have you covered. And the best part is, with our affordable pricing you’ll be able to rest easy knowing that your property is well-cared for and that your ROI is being maximized.