The 6 Factors to Consider When Hiring a Property Management Company: #3 Value Propositions
We have covered (1) price and (2) reputation, so the next aspect to consider is the value proposition of the company. What is a value proposition? Here is one definition: “A business or marketing statement that summarizes why a consumer should buy a product or use a service buy sildenafil citrate 100mg.” I believe every company should have a value proposition, that is, why should you do business with them as opposed to the hundreds of other property management companies out there? All property management companies collect rents and make disbursements to their owners, but what makes this particular company unique? Here are a few value propositions you will encounter when considering property management companies: a) reputation b) length of time in the business c) programs d) technology e) local experts or f) experts in the type of property you need management for. At Coastal Paradise we offer the following value propositions (at not extra cost to you):
- 6 Performance Guarantees – if we don't perform as promised, we pay a price
- Better Tenant System – we have a tested system to secure better tenants
- Dare to Compare – we allow you to compare us to 7 other companies in your area
- We Manage Happiness – check out our Yelp reviews
- Family Owned and Operated – we care about our clients
- San Diego Property Management Company
We are proud to offer programs, tools, technology and just great customer service to our clients.
The 6 Factors to Consider When Hiring a Property Management Company: #4 Core Competency
The fourth quality to look for in a property management company is understand their Core Competency. Core Competency is defined as “the main strengths or strategic advantages of a business”. No one property management company can do it all: manage all types of properties all over California. The property management business is still a very highly “local” business and very hands on. Here are the most common core competencies of property management companies:
- Property Types – the company you are considering should currently manage your type of property. You don't want to be the guinea pig for a company that has never managed an 8 unit building before sildenafil citrate tablets 100mg. We manage all types of residential properties, small commercial buildings and small retail centers. We don't manage HOAs, vacation rentals or industrial properties. If we acquire the ability and necessary staff, we may manage these in the future, but not right now.
- Technology – any property management company should have the tools to manage your property well. Tenants want to pay online, owners want their proceeds sent via ACH and they also want to go online to see their statements, invoices and accounting. We use Buildium and adopt any technology that will improve our customer service and lower our cost to do business.
- Licensed and Insured – it is imperative that your property management company is licensed, in compliance and has the necessary insurance to do business in this state. Coastal Paradise is licensed in the BRE, in good standing and we have all the insurance that is necessary to protect ourselves.
You should know the core competencies of the property management company.
The 6 Factors to Consider When Hiring a Property Management Company: #5 Responsiveness
The fifth factor to consider when hiring a property management company is their responsiveness not just to the owner, but the tenants and vendors. Since many people won't complain in writing about the quality of service they receive, your firsthand experience should be a strong indicator as to the future service you will receive.
If you call a property management company to inquire about their services, and they don't pick up the phone, that could be cause for some slight concern Read More Here. If they don't return your call for 24 or 48 hours, that could be cause for great concern. Here is what I have learned: people in general, and property management companies in particular, don't become more responsive over time. They will be on their best behavior and the most responsive before you sign a contract. After you sign, their incentive drops dramatically.
The same holds true for their responsiveness to tenant issues. If a management company is not quick to address their problems one of two things will occur: a small problem can become a big problem or the tenant will tire of their delays and when the time comes for them to renew, they won't. The cost to an owner when a tenant does not renew can be quite high: lost rent, tenant acquisition fee to be paid and the cost to prepare the property for the market. This can run into thousands of dollars. It is better to have a property management that responds quickly and competently to tenant problems and that tenant will be more inclined to stay in your property.
In property management, timing matters.
The 6 Factors to Consider When Hiring a Property Management Company: #6 Transparency
The sixth and last factor to consider when hiring a property management company is if you can trust or believe what they are saying to you. You need your property management company to be transparent about their business practices. It should be easy and quick to:
- Compare them to other companies
- Review and understand their management agreement
- Comprehend the manner in which they obtain new tenants
- Know how much they pay to other parties to find a new tenant
- Find your property on the internet when being marketed
- Find out where they manage other properties
- Determine the number and type of properties they manage
At Coastal Paradise, we encourage prospective clients to visit our website where they can:
- Compare us to 7 other companies in their area. Included in this comparison chart are:
- Yelp reviews
- BRE information
- Monthly rate
- Fees
- Type of properties managed
- Years in business
- Ownership of business
- Review a sample of our management contract
- Find answers to frequently asked questions Visit Website.
- See all of our current lease listings
- Meet all of our staff
- Watch blogs with property management tips
Being open, honest and easy to work with is an important factor in choosing a property management company and we hope our total transparency is a testament to that.
Free Property Management? How is that?
I understand that many investment property owners do not currently pay for management services because they manage their own properties. It cheap nhl jerseys is estimated that over 70% of all investment property owners are SMIPOs (Self-Managing Investment Property Owners). They are reluctant to hire a professional property management company, even if they are tired of managing their own property, because, well, it is free for them.
But why do most of us pay $10 to $15 to have our cars washed? I suspect we believe they can do it better, and it is not worth an hour of our time in the hot sun to wash wholesale jerseys it ourselves. I understand $15 for a car wash is far less than $100 a month to have someone manage your property; but what if it were not?
In commercial leasing, it is common for the tenant to have two options when leasing: 1) a gross monthly lease, where all of the expenses are included in the rent or 2) a triple net lease, where the tenant base a base rent and then a monthly fee for the expenses of the center sildenafil 100mg price.
We now offer this for our clients. Rather than having you pay the management fee, we charge the tenant for our services. It is common for the rents of SMIPOs to be below market. When they hire us, we agree on the rent the owner wants (say $1,900). We then negotiate with the tenant, charge them $1,900 for base rent and $100 for our services for a total of $2,000. We forward the $1,900 to the owner and keep the $100 to manage the property. If future rents increase, our fee stays the same, and the owner receives the increase.
Free property management to our owners. If it were any less, we would have to pay you to manage your property.