Investment Property is one of the safest ways to grow your wealth, and can be an important step on your way to financial security and a comfortable retirement. However, if your properties aren’t managed effectively, then you could open yourself up to a significant amount of risk and could even find that your financial returns are diminished.
Choosing the right company for investment property management will be essential, and when you’re screening your potential options in Denver, there are some key questions that you should ask before you commit to any agreement.
How Long Does It Typically Take to Fill a Vacancy?
Ask about the average time it takes for a property management company to fill a vacancy. Excessive vacancy times will mean that you lose money, so find out what kind of strategies are in place to fill your property, and ask some questions about historical figures, or even the average occupied/vacant ratio that the property management company sees.
What Kind of Tenant Screening Process is in Place?
There are many ways to screen potential tenants, including through employer references, credit checks, and through shared tenancy databases. Ask a prospective investment property management company about their own tenant screening process, and ensure that they’re doing enough to vet the people who would potentially be living in your property.
How Many Units Are Being Managed by the Firm?
A quality property management company won’t be afraid to talk to you about the size of their current portfolio. Companies that manage more properties will typically have more experience with the local market, and a large portfolio can help to instill trust. Keep in mind that the property management market can be highly competitive, so a healthy portfolio indicates that the management company has delivered service that allows them to retain their existing managed properties, while attracting new investment owners.
Ask to See a Sample Lease
Property management professionals use standard lease agreements that are drawn up by lawyers, so a sample lease should be able to provide you with confidence that laws and local codes are being adhered to.
Does the Company Perform Regular Inspections and Provide Reports About Your Property?
Hiring a Denver property management company should mean that you gain peace of mind knowing that your investment is looked after. Make sure that your management company provides regular reports and conducts inspections to ensure that your property is kept in top condition.
With just a few questions, you can gain a strong impression of whether a rental management company is going to be able to effectively protect and oversee your property. At Pioneer Property Management, we invite you to ask us these questions, along with any others that you have about Denver property management.