If you own rental property in the greater San Francisco area, you may have considered outsourcing to a San Francisco property management company. There are certainly plenty of rental property owners who have hired Bay Area property management companies to handle their day-to-day duties all for a service fee.
The Growth of Property Management Companies in the Greater San Francisco Area
You have probably read about property management Santa Clara companies running more rental property in the area. In particular, the recent report about Harvest Properties signing a deal with Principal Real Estate Investors to run their 16-story, Class-A office building. Such deals are now quite common not only in San Francisco and Santa Clara, but also for property management San Jose companies as well as those in the outlying area.
The growth of property management companies is not really surprising for larger organizations that may have hundreds of tenants. However, even Bay area property management Redwood City companies are expanding and running properties both large and small. In fact, the expansion into smaller rental properties is one of the most significant growths of the property management field in the past decade.
The Concerns of Hiring a Property Management Company
Naturally, putting your rental property into the hands of people you barely know certainly sounds like a risky proposition. This is especially true if you have heard some of the less than pleasing stories about various property management companies over the years. Of course, most property management companies are run honestly and above board, so there are strong reasons why making this move can provide benefits in the long run.
The first step is looking over the respected property management SF companies that have handled such properties for years. The companies that have built up their reputation due to providing excellent service are generally free of the issues and problems that you might have read about in news accounts from time to time.
Remember that property management companies are not just for the big boys with hundreds of rooms to rent, they are also perfect for smaller properties as well.
What are the Benefits to Outsourcing your Property Management?
There are actually a number of advantages that you can enjoy when hiring the right property management San Francisco area company.
Time Management: The biggest reasons why owners hire property management companies is to relieve themselves of the day-to-day work such as collecting rent, working with tenants, advertising listings, performing background checks, scheduling maintenance and so forth.
Quality Work: Companies such as reputable San Jose property management businesses have been operating all types of rental properties for many years. This means that they know how to do thing the right way and by the book so that they stay out of any legal trouble. In fact, their experience is invaluable in running your property so that you can relax and take care of other business.
Cost: While you pay for the services of a property management Santa Clara outfit for example, they will being doing all the maintenance which over time means that you actually save money because potential big issues are kept to a minimum. Add to that the following of all legal guidelines to prevent potential lawsuits, adding new tenants more quickly, raising the rent when the economic situation dictates and taking advantage of special deals when working with professionals and your costs over the long term may be substantially reduced.
How to Hire a Property Management Company
For all the advantages, hiring the right property management Santa Clara Company for those who own rental properties in this area is the most vital step towards reaping the benefits that they can provide.
Naturally, rental property owners will want to verify the proper licenses and credentials of prospective property management companies. But in order to ensure that they run the property in the manner best befitting the owner, there are a few questions they need to ask.
Source of Fees: What are the fees for the services of the rental property company based? Ideally, the fees should be based on the rent collected, not charged. In addition, a complete listing of services is needed to ensure that everything you want is covered.
Inspections: How frequently will the property be inspected? Obviously, the more inspections the better it is for you since potential maintenance issues can be addressed more quickly and at less cost.
Reports: At a minimum you should get monthly reports from the property management company with special reports for any substantial incidents such as emergency repairs. Anything less than monthly reports are not acceptable, even for small properties.
Repair Policy: Reputable property management Santa Clara companies offer upfront policies about what is and what is not covered for repair services. This is generally tied to the amount needed to be spent or the complexity of the repair.
Filling Vacancies: What will be charged if the property has vacancies? Does the company try to fill the vacancies quickly and with proven means?
All in all, finding the right property management Santa Clara Company can certainly help rental property owners get some peace of mind. The experience, skills and reputation of a good property management company can avoid many potential issues and save money even for smaller rental properties.