Hiring a Property Management Company: 7 Mistakes and How to Avoid Them

Are you struggling to vet renters, juggle maintenance requests, and fill vacancies? If you own Breckenridge rental properties, you could stretch yourself thin with such a long to-do list. Instead, consider hiring a property management company this year.

There are over 296,200 property management companies in the US, though. Hiring the first one you call could leave you with a team that lacks the property management experience you need.

Discover what mistakes to avoid when vetting your options for management companies today.

1. Not Prioritizing Experience

Prioritize finding a company with years of property management experience. Determine how long the company has run and operated. Consider how long they’ve managed Breckenridge rental properties, too.

A company with some longevity can leverage their experience to your benefit. These companies often have detailed plans to ensure efficiency. You won’t have to worry about operational issues or the company shutting down after a few months.

Meanwhile, partnering with a company that has years of hands-on experience and expertise can help you make smarter decisions regarding your lodging rentals.

For example, you can lean on their expertise regarding:

Accounting
Emergency responses
Legal
Maintenance issues
Vacancies
Evictions

Relying on the company’s valuable expertise can help you avoid costly mistakes. These companies have already learned from their prior experiences.

Chances are, there’s nothing these companies haven’t encountered in the past. They’ll know how to navigate any problems that might arise. Leveraging their expertise can help you find efficient, effective solutions to any problems you encounter.

2. Never Questioning Availability

Ask each property management company how many properties they currently manage.

There’s no right or wrong answer to this question. A company with a smaller portfolio of properties will have more time to dedicate to your Breckenridge properties. Their availability can ensure a quick response to any problems you’re facing.

These companies can also provide more personalized experiences.

However, smaller companies sometimes face issues that affect their ability to help. For example, companies with smaller teams are often spread thin. It could take them longer to respond to your calls.

Larger companies, on the other hand, are equipped with larger teams. Their employees often cover different areas of expertise. Larger management companies also have access to more expensive resources.

These teams might have more experience overall, allowing them to provide better service.

Ask each property management company about their availability. How long does it usually take for them to respond to a call or email? Determine what contact methods they use (email, phone, online portals, etc.) as well.

Look for a team with fast response times.

3. Forgetting About References

Request references from each property management company. Their client testimonials can help you determine their ability to meet your expectations. Choosing a company that already has a glowing reputation can also give you peace of mind.

These companies will strive to maintain their reputation by offering clients the best possible services.

4. Neglecting Services

Determine what services are included under each management company’s contract. Look for a full-service property management company to avoid outsourcing to multiple businesses.

Their services might include:

Strategic planning
Tenant screening
Home check inspections
Listing properties
Rental property maintenance

Look for a company that provides additional services at your request. Confirm the company will tailor their services to meet each homeowners needs. Finding a company that will strive to meet your needs and expectations can save you from stressful situations in the future.

For example, how do they handle screening renters or tenants that are late paying their rent? The cost of evicting someone could cost as much as $5,000. A property management company that thoroughly vets potential renters can help you avoid evictions.

5. Not Discussing Qualifications

Ask for a list of the property manager’s qualifications before they begin working with your rental properties. Confirm they have the necessary training to deal with any complications that arise.

For example, perhaps the company offers employees associate education programs and board member training.

Make sure your property manager is informed of new laws and regulations to ensure your property remains compliant.

6. Failing to Ask for Updates

Make sure the management company intends to communicate with your regular. Ask if they have a schedule that includes monthly reports and statements.

If they don’t provide you with regular updates, you might not learn of a problem until a snowball effect has occurred, leading to expensive complications. Instead, look for a company that’s responsive to your needs and concerns.

Consider how they communicate with renters, too.

7. Never Reviewing the Contract

Request a copy of each management company’s contract. Determine how long the duration of their contract lasts and if there are penalties for ending the contract early.

Reviewing the terms of the contract will ensure you don’t incur any penalties or neglect to consider hidden fees. If you have any questions regarding the contract, ask before signing the agreement.

Ask more than one property management company for an itemized list of the services they offer. Comparing property management costs can help you determine the industry average for services. Don’t rush to choose the cheapest option available, though.

Instead, review your list of options for property management companies and the notes you’ve gathered. Look for an experienced team that offers the distinct resources and services you need. Their comprehensive services can help you save time, money, and stress.

With their help, you can generate more revenue from your Breckenridge rental properties without going over budget.

Avoid Mistakes When Hiring a Property Management Company

Making these mistakes when hiring a property management company could leave you feeling disappointed. The right management company will help you make the most of your lodging rental in Breckenridge, CO. With their help, you can choose a company that has your best interests in mind.

Find a management company for your Breckenridge rental properties today.

Want to streamline your search? We’re here to help.