Whether you are an investor just getting into real estate with a plan to expand your portfolio or a home owner with a vacation property along the New Hampshire or Maine coast line, at first glance, you might think you can self-manage your property. Don’t be fooled.
There are many challenges and barriers to consider. Attracting and screening tenants, chasing rent payments, and performing routine maintenance are all time-consuming and can be stressful.
After all, not everyone is built for a DIY self-management situation. It calls for a solid time commitment and an in-depth understanding of the market and rental laws to maximize your return on investment.
If you are not made for a self-manage approach, then you want to be sure to complete necessary due diligence to hire a qualified team to protect your investment
Things you’ll want to investigate about your potential property management group:
- Screening Process
Start with the basics, how does the company screen tenants. For long-term rentals, you’ll want quality tenants. The management company should complete background checks, verify income, and rental history.
- Property Inspection
Having a team you can depend on to periodically check-in on your vacation home can protect you from costly repairs. They’ll catch that leak before it becomes a major problem. Bonus, these hired professionals will make proactive recommendations on repairs and improvements to prevent issues down the road.
- Cost of Service
Most property management firms charge ~10% of the monthly rent. Well worth it to have peace of mind, especially when proximity prevents you from being present on property.
- Team Experience
A reputable property management firm will have a resourceful team in place with a variety of trades people and service providers in their contact database. When you need a leak fixed during a long holiday weekend, your property management team will have people in place and at the ready to take care of the issue.
- Tenant Turnover
Just as important as getting the right tenant is proper execution of a tenant turnover, whether long-term renter or weekly guest. Does the firm charge for tackling the exit walk-thru, paint, or carpet cleaning, how long should you expect the property to be vacant? These are all queries you will want to ask your potential property management company.
Side note: make sure your selected firm is capable of handling an eviction. Do they have the experience and resources to handle the eviction? They should be able to file paperwork on your behalf and follow through on the eviction process. It’s also worth reviewing what the eviction laws are in your area.
After you’ve completed the all-important screening process and selected a firm, take the time to discuss communications. Start by identifying your point of contact and their preferred method of interaction– text, email, web portal, or traditional mail.
And pay attention to what your property management company asks you to fix. They are seasoned professionals, do not ignore their repair advice.
Rising Tide offers customized property management services for Seacoast property owners to choose from. With over a decade of managing properties in New Hampshire and Maine, our team will provide you guidance navigating the rental market, building tenant relationships, and maximizing your real estate investment. To learn more about how our team can make your property a worry-free part of your financial portfolio, please email Property Manager, Anthony Sillitta at anthony@maddenre.com or visit www.maddenre.com
