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10 Questions to Ask a Property Management Firm Before Hiring

Hiring the right management company is critically important. In most cases, your investment property is the single biggest investment you have made. A wrong management company can cost you thousands of dollars by putting in a wrong tenant or contracting an improper maintenance company. Even worse, hiring a wrong management company can have you sued by not knowing laws and regulations!

Before you talk to someone from a property management company, spend a few minutes looking them up on the Internet and searching answers to these ten questions:

1. Do they have a professional website?
Before you call on a property management company, determine if they have a professional website. Image and professionalism do matter.

2. Do they have any reviews online?
You will need to compare positive and negative reviews that property management companies have in order to consider selecting them.

3. How quickly do they respond to your phone call or email?
If a property management company does not respond to you quickly when you are a prospective client, it is a sign that their communication will be awful when you become a client. It is also a sign that they do not communicate well with their residents. Communication in this business is extremely important.

4. Do they belong to any professional organizations or hold any designations?
This is important because this determines who is running the property management company like a business and who is doing it part-time to make some extra money while they are being a realtor buying and selling homes. You want a professional management company that specializes in property management.

At Archwater we are not just licensed real estate agents, we are members of the National Association of Residential Property Managers (NARPM) where we hold Certified Property Manager designation.

5. Do they own any properties?
Do you want to work with someone who does not know what it is like to be an investor? You want to work with someone who understands investing and has built their company with the investors in mind, not themselves. Most management companies are built by agents not investors.

The owners of Archwater possess their own investment properties across the state of Florida.

6. What are setup fees? Are there any other fees?
Some management companies may charge lower management fees, but they charge setup fees, higher maintenance fees, money transition fees, transportation fees, etc. Make sure you understand all of the charges and fees.

Archwater does not charge setup fees. Archwateronly charges owners leasing fees, management fees, and lease renewal fees. Archwater neverupcharges maintenance invoices, nor chargesany administration fees such as sending letters, going to the property, etc.

7. When do they send you the owner’s payment?
It is important to have a clear time frame to receive payment. This also indicates a management company’s professionalism.

Archwater pays owners between the 10th and 12th of a leased month. We send an owner report with each payment.

8. How transparent are they?
Does the management company show before and after photos at move-in, move-out and make readies? Does the owner receive copies of maintenance invoices?

9. How do they advertise your property?
Ask about their marketing strategy and what they do to ensure your home is leased quickly and profitably.

10. What is their average tenant turnover rate?
Many management companies like to re-rent every year in order to keep a full month’s rent for tenant placement.

Archwater, however, usually has tenants staying on average of three years.

In conclusion, hiring a right property management company is paramount to your success. The right property management company will save you time and money. The few dollars per day to hire a professional manager will ensure you do not make a mistake with paperwork or putting in a wrong tenant. The right management services will save you money on maintenance with volume discounts; will save you money on rent by setting the rent correctly and marketing the property efficiently. Most importantly, a right property management professional will keep you out of the court system.

Good luck in finding right partners. We hope that you would consider Archwater Realty the right choice to take care of your investment management.