Serving Toronto, Mississauga and the GTA
So, you've taken the plunge into investment property. This is a huge step and not without its risks, however, the payoff of owning a rental property can certainly be worth it. Not only are you providing a dwelling place for someone, but you have the chance to add some additional income to your bottom line. That being said, there are a number of things to consider when it comes to owning a rental property and the most important is whether or not you will enlist the services of a property management company. There are advantages to working with a property management company, and we'll examine those another time, however these advantages can only be realized when you work with a great property management company. But how do you know what to look for in a property management company? Well, here's a list of things that we feel are important to look for when picking the right company for you.
Property managers typically charge a monthly fee to oversee your property. Monthly fees can range from 5% to 20% so finding the right balance of fees and services is important.
For many property owners, this is of utmost importance. You will want to know how responsive they are to phone calls and e-mails. Do they respond promptly or does it take several tries on your part before they reply? If communication is not timely, it's best to keep looking.
Monthly Statements & Accounting
This goes right along with communication, but you will want to know if the management company provides monthly income/expense statements of your property. A good property management company will do this. Additionally, when do they pay you? At the beginning of the month or middle? You will also want to know how they handle tenant deposits. Do they keep deposits separate or are they put together with all the other income for your account?
Repairs, Maintenance & Yardwork
Does the management company do their own repairs and maintenance or do they contract out for these tasks? What about yardwork and snow removal? Do they contract out for these tasks as well? What are their fees for each of these tasks?
One of the primary duties of a property management company is to fill a vacancy when it arises. You will want to know what type of advertising they do when a property becomes vacant. Do they put a sign up on the property? Do they advertise in local online directories or in local papers? How they handle the advertising for vacancies can make a huge difference for you.
In addition to these tips, referrals from trusted sources can go a long way in helping you choose the best management company. Talking to other property owners or local real estate agents is a great place to start; they can direct you to the companies that have been in business the longest and have a proven track record of success.