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Turnkey Rental Property Management

Choosing the right turnkey rental property management can make or break your investor success. Here is everything you need to look for.

Turnkey rental property management companies are an integral part of the investment experience. Good property managers take care of any maintenance issues and provide the investors with ease of mind. Knowing that your property is in good hands allows you to focus on your next investment.

How to Find a Property Manager for Your Property

Finding the right property manager for your property requires research. Start out with a basic Google search. Type in “property management companies in” followed by the market your investment properties are located in.

Remember that as an educated investor, you also have to be an investigator. Dedicate time to comparing the different options that pop up on your search. Besides reviewing their website, look for other investors’ experience with the company in forums like BiggerPockets and read reviews. 

After you’ve compiled a succinct list of possible companies, start asking for references — the longer they’ve been with the company, the better, and begin preparing your questions. It will be crucial to find a company that is transparent and trustworthy.

Here are some questions that can help reveal whether a property management group is reputable:

  • Is your property management team licensed?
  • Do you have professional liability insurance or errors and omission coverage?
  • How many years of experience do you have in the property management business?
  • How many rental properties do you manage?
  • How big is your management team?
  • Are you currently an active real estate investor in your own market?
  • How do you determine the cost of rent?
  • How do you screen your residents?
  • How do you collect rent from your residents?
  • Are there fees when the property is vacant?
  • How do you market your properties? 
  • What is your inspection process and does it have a charge?
  • Do you offer an eviction warranty?
  • What is the average vacancy rate for your properties?
  • What miscellaneous fees could I be charged for the management of my property?
  • When and how are property owners paid?
  • When will I get updates on my portfolio?

If your turnkey seller manages properties, inquire about their rates and their reputations as property managers. Just the same, you will want to speak to others who have experience working with them, read reviews, and ask the right questions.

Full Rental Management for Turnkey Properties

Full rental management companies for turnkey properties are an all-in-one deal for investors that brings a plethora of perks. They ease the process for investors by taking care of every aspect of the property so that the investor never has to fix a toilet in the middle of the night or solve a neighborly dispute. But finding a quality company that you can trust is key.

What To Look for in a Property Management Company

A company that is not managing every aspect of the property from renovation to management is not a true turnkey company. As an investor, you should not have to worry about anything besides the return on your investment and any repairs that come up while you own. In addition, there are several other factors shared by successful investment companies.

Longevity

A company’s longevity is critical for you as an investor because they will be able to help you when and if things go south. They have experienced the turbulence of the market and have demonstrated that they’re able to stay up to speed with any risks thrown their way.

Invest in Themselves

Where a company invests says a lot. A company that invests in the same markets they sell properties out of shows they’re more likely to have your best interest. If a company is trying to sell you on a market that they would never dare to own property in, that’s a major red flag.

Equipped to Meet Your Needs

If the company has a large team, they will be better equipped to match your needs as an investor. True turnkey investment companies are able to buy, fully renovate, find residents, and manage your properties for you. Be sure whichever company you do business with can handle your needs as an investor.

 

What You Should Avoid in a Property Management Company

Guarantees

Companies that promise you guarantees are only selling the “guarantee” and not the actual quality of who they are or the work they do. Quality companies don’t have to rely on guarantees. Instead, they will go above and beyond the guarantee promised by other companies.

Lack of Transparency

A company that won’t allow you to conduct a third-party inspection should immediately raise a red flag. No matter how reputable, no company should ever forgo an inspection. Until a company has earned your trust, always inspect your investments or have a professional do it for you.

Cash Only

Don’t do business with a company that demands you pay for your properties in cash. Companies that require cash only are simply seeking to avoid the time required for obtaining appraisals, inspections, and the delays in the time it takes. These are people that want to get things done quickly and not always to your advantage.

“Buy Now” Marketing

If your investment company is telling you that you must buy now or you are going to miss out on the greatest real estate sale in history, walk away. You should never feel pressured to buy an investment property. Make a plan and don’t fall for the trap that you must buy all of your investment properties immediately or that you must have a massive portfolio from the get-go. That’s simply not the case and respectable companies know this.

 

The Bottomline

Investing with a property management team is choosing more than just a company — it’s choosing an experience. True turnkey companies offer a full-service package with one point of contact for investors. High-level, competent companies will have many years of experience and do everything in-house.

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