Outsourcing rental property management can be something of a gamble for property owners, especially if they go into the process without any requisite knowledge. However, simultaneously, managing a rental property alone can become something of a nightmare in its own right as it is a time-consuming and often stressful responsibility.
If you have decided to hire a rental property management company for your Denver rental home, here are some critical factors to consider:
Finding an agency that specializes in rentals
Many estate agents that focus on selling property may dabble in rentals and property management. However, these companies are not necessarily your best option. When considering a rental agency operating in Denver and other US cities, look for one that specializes in rentals only. Its employees devote themselves full-time to managing residential properties and matching tenants with landlords. You might want to work with large residential rental companies like Greystar Real Estate Partners or the Lincoln Property Company. Local options include Denver Realty and Property Management, Inc. and Pioneer Property Management.
Evernest is a residential property management company that works closely with clients to ensure they get the right tenants and maximize their rental property ownership experience. The company is well-established in Denver and has a sound reputation for delivering on its promises.
Any property management company you choose to work with should be registered with any prescribed bodies. At a minimum, the company’s website should confirm its membership of the National Association of Residential Property Managers (NARPM).
If you are unsure whether the website endorsement is authentic, contact the NARPM or check its website for a list of accredited property management enterprises. Alternatively, request to see the organization’s membership paperwork. Additionally, all agents working for the company should have a Colorado real estate broker’s license.
Checking internal processes
As a landlord, have a list of questions to ask any property management company you choose to interview. A prime example would be how agents recruit tenants and what vetting practices they undertake. Rigorous tenant vetting is a dealbreaker as it ensures your rental home is occupied by renters who pay on time and have a track record of not causing excessive damage or problems. Ensure that your preferred rental company insists on taking a deposit from renters as not all organizations follow this practice, which is seen by most as an industry standard.
Next, ask about rent collection processes and what actions the company takes when people fail to pay on time. How far will its agents go to protect your rights as a landlord while balancing them against those of a tenant? Another question that should be a priority on your list is how agents deal with repairs, maintenance, and property damage. Does the company have established relationships with a network of local Denver contractors that address these issues promptly while also offering quality workmanship?
Examine the company’s standard agreements
When it comes to this stage, you want to look at two documents carefully: the contract renters sign with the company and which you as a landlord are expected to enter. Most agreements contain a lot of legalese that you might find challenging to interpret. It would be advisable to consult an attorney and ask them to explain each provision to you.
If you are concerned about any clauses in either agreement, set up an appointment to discuss them with the agent. It might be necessary to tweak a few specifications to suit your individual needs. Some companies might not be willing to entertain such suggestions, in which case you might want to consider finding someone else.
Research the company’s reputation
To evaluate whether a rental property management company you are leaning toward hiring will get the job done, some investigation of its reputation might help you decide. Find out how many clients the company has and what quantity of properties they currently manage. Ask for testimonials from clients or look at online reviews. However, bear in mind that most people only go online when they have complaints. But if you see a consistent laundry list of similar complaints, treat this as a red flag.
Speak to other landlords using different property management companies to discuss their experiences, and whether they would recommend the organization you intend to engage to manage your rental property.