Edmonton Property Management Companies: Finding The Right Fit For Your Investment Portfolio
Updated: Apr 14, 2022
Building a real estate investment portfolio is one of the smartest things to do as an investor. Whether you're starting as a real estate investor or have been in the game for a long time, finding a property management company is the way to go. If you try to manage your properties, you will eventually burn out.
This article will help you understand what factors need to be considered before selecting a property management company in Edmonton.
Factors To Consider When Choosing A Property Management Company
Having a real estate investment portfolio of rental income can be a great source of income. However, if you own multiple properties, managing them, collecting rent, and dealing with tenant issues can be too much to handle on your own.
This is why hiring a management company is the right option. Let’s look at what all needs to be looked at when deciding to hire one.
The first step in choosing a property management company in Edmonton is to find out whether the company is legitimate or not. A legitimate company will have all their licenses up to date; they will have a list of references to back their claims and documents to prove the current properties they manage.
In recent times investors are flocking to buy real estate, which has given rise to property management companies. Making sure that it isn't a fraudulent company is essential. So ask for proper documentation before moving forward. If a company cannot provide documentation, then steer clear of that company.
Location And Experience for Edmonton
Ensure the property management company is located in Edmonton and has sufficient experience in the Edmonton real estate and rental market. They need to be situated in Edmonton because you would want your property to be checked up on regularly, and your management company should be in constant connection with the tenants as well.
Having experience in the Edmonton real estate market is important. The property management company should know the rental prices for properties in Edmonton. What properties will rent faster than others, and which areas are better than others to buy properties in.
Typically a property management company in Edmonton with at least 5 years of experience will have all of this knowledge.
High Occupancy Rate
This is another very important factor. You don't want to buy a property and then be stuck with vacancies. A property management company should have strategies and methods to provide a high occupancy rate.
Discuss with the property management company what different marketing strategies they have. A great marketing strategy will attract many potential tenants, resulting in high occupancy rates.
Property Management Fees
It is also important to know what property management fees will be charged on your properties. Different companies will charge different fees, and engaging a property management company that is transparent with their fees is essential.
This is important to maintain your property well. If you get a bad tenant, they can wreak havoc on your property. It will be the property company's responsibility to ensure regular property inspections during the tenant's stay to ensure that your property isn't damaged or destroyed in any way.
When searching for a property management company in Edmonton, asks them how regular and strict they will be with the property inspections. Also, ask them for a sample of their inspection reports. The report should include both exterior and interior inspections of the property.
Finding good tenants is not easy, and nobody wants to end up with bad tenants. So having a strict screening process for potential tenants is very important. The property management company you engage with needs a strict screening process. You need to ask them if they do a background check for employment and income sources and whether they contact previous landlords to get feedback on potential tenants.
Another important question that should be asked from property management companies is what their policy is on rental scams. Who will bear the loss, and whether they have had any experience with rental scams previously.
Finding out how the company collects rent is also important. If they collect checks, you can expect some delays, as the check will get need to get cleared from the bank.
Make sure also to know what the policy is on late payments. What kind of grace period do they extend to the tenants? All these rent-related questions need to be asked from the property management company to safeguard your interests.
Read The Contract
The contract is the most important part of this deal between you and the property management company, regardless of how good their reputation is and how big their portfolio is.
The contract should clearly state what service you will receive from the company, and it should have terms and conditions regarding payments, late payments, and rental scams. Make sure you discuss with your management company any questions you may have. Once you sign the contract, you are bound and must adhere to it.
Edmonton has many property management companies and finding the right one that fits your needs is very important. So make sure you consider all of the factors above when choosing one. Roark Properties holds themselves to the highest of standards. If you're looking for Property Management Edmonton, we are authentic, reliable, and trustworthy.