5 Signs You Need a New Property Management Company



A good property management company can save you money, give you peace of mind, and free up your valuable time, but if the company is terrible, they are going to cost you money and time. Without proper management, your property will sit on the market for a long time, or you get a terrible tenant living in your property because you are anxious about how long the listing has been on the market. You waste valuable resources when you don’t have a good property management company.

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If a property management company isn’t doing their job well, or isn’t reliable or trustworthy, and you are concerned about your rental property investments, then it’s time to find a company you can work with.  Look for these five warning signs that it’s time to switch your property management company.

1. Weak Communication

If it is difficult to contact the property management company, it may be time to switch to a new company. The reason you hired a property management company is so they could be available to tenant calls or emails all the time. Unanswered calls or emails are unacceptable.

2. Deadlines Missed

If there are deadlines that need to met and the property management company is missing them, it can cause serious issues. For example, if they aren’t on top of tenant leases and renewals, it can cause a headache for you. You want a good property management company that is organized, up to date, and contact your tenants and follows up to avoid tricky situations altogether.

3. Late Owner Disbursements

How quickly is the property management company dispersing the rent they collect? You want to make sure you are getting your payments in a timely fashion. In fact, when you signed a contract, it should have stated when you would receive the rent payments. So, if you aren’t getting your payments on time, it brings up more questions, like is the property management company collecting the rent on time? If your disbursements aren’t coming in on time, take that as an indication to switch to a new company.

4. Unauthorized Charges

It’s a fact, repairs are going to have to happen in your rental properties, but when repair costs more than expected, the property management company should be reaching out to you for expense approval. Whenever there’s a repair, and you’ve approved a budget, the property management company should stay within that budget, and if the maintenance can not be completed at the amount discussed, then you should get a call to authorize the increase.

5. Tenant Vacancies

If your space is remaining vacant for too long, and you’re not getting updates from your property management company, then there are issues. Finding the balance of between filling a space and leasing it under market value requires careful negotiation, and if your property management company isn’t keeping you updated and sending you reports of other listing in the area, you will become impatient because you want to see results.

What to Look for in a Property Management Company?

When searching for a new property management company, here are some questions to consider asking before you decide to hire a company:

  • Is your company a franchise? A problem with a franchise that you don’t have to be an expert or even experienced in the field to buy a franchise.
  • What’s your specialty? Make sure to hire a company that has experience or specializes in your kind of rental properties.
  • How many properties do you manage? This lets you know the companies experience and if they have enough time to invest in your properties.

Final Thoughts

If you aren’t happy with your current property management company, then its time to search for someone new. A property management company is accountable for handling your investment. You need to make sure the next company you go into contract with has the proper experience to manage your rental properties and make you money.