What to Look for in a Property Management Company
Investing in real estate can be a very profitable and great way to build your wealth. Southeastern Wisconsin’s market is very stable and a great place to invest in rental property, although, being a landlord can come with headaches. This is where many turn to a professional property management company to handle the day to day operations of the property. Choosing one will be one of the most important decisions you make in your real estate ventures. Wisconsin is where our property management company, MPC Property Management, manages properties, and these are key areas you should consider when choosing one.
1) Make sure they are licensed. In Wisconsin, a property management company must be a licensed real estate broker. If they are not, they should not even be offering these services.
2) Make sure they have a real estate trust account for third party funds. They will be handling yours and tenants monies and are required to have a trust account that can be audited by the State of Wisconsin.
3) Make sure they are insured. A property management company should be listed as an additional insured on your policy and also have a general liability policy of there own.
4) Make sure they have an automated bookkeeping system, that it is backed up, and that you will have timely access to this information.
5) Make sure you check references. Any reputable property manager should be willing to share references with you to contact.
6) Make sure they properly qualify tenants. Do they check their credit, criminal records, income qualification, etc? You do not want unqualified tenants in your properties. Evicting tenants is much more expensive than doing the proper work upfront to find a qualified one.
7) Make sure they are professional and business like in both appearance and mannerism. They will be representing both you and your property.
8) Make sure they do scheduled inspections, both interior and exterior. Inspections insure the property is being properly cared for, tenants are obeying the rules of the lease, and can prevent problems from growing out of control. They will also help you budget for future repairs that will be needed.
9) Make sure you fully understand all their fees. There is typically a tenant acquisition fee and then a monthly management fee. Ask how their maintenance and repair labor is charged and also if they markup sublet vendors invoices.
10) Make sure you review their lease forms and verify they address specific terms important to you. For example, pets, yard maintenance, and smoking.
We have taken over many properties in Wisconsin where the former property management company did not meet many of the above items. These have become our best customers because they know what it’s like to not have a property managed properly.
MPC Property Management services Kenosha, Racine, Rock, and Walworth counties, including Lake Geneva, Kenosha, Racine, Burlington, and surrounding areas. Please visit us at http://www.mpcpm.com.
Author information: Bernard Petersen is the Operations Director at MPC Property Management LLC
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