While having a business is great, managing one is not very easy, especially when it comes to the technical aspects. Profits are enticing but business management is not that appealing to everyone.
However, there are people who find business management exciting and these people found their niche as business or property managers. Good news to those who want to have a business but are not very fascinated by the management side of it. You can hire professionals to do the necessary tasks for you while you focus on how to expand and improve your properties or other more important matters.
A smart investor who values success knows the significance of good property management. Utilization of business property managers is a smart thing to do for those who are busy or those who do not have great interest in that part of the business.
When you already have a lot in your hands and handling a property does not come as a priority, then it is wise to make use of the services of a good management company. Leverage is a business man’s key to success. With a great number of professionals who offer their services, how do you choose the best among the many companies of business property management in Grand Rapids? Here are some points to consider when choosing or hiring a property manager.
What does a property management company do?
To put it simply, property managers or property management companies serve as middleman or liaison between tenants and landlords.Your property manager’s responsibilities are greatly reliant on what you have agreed and it, usually, involve maintenance, repair and development. They are primarily in charge of accepting clients or tenants, collecting rents, evicting clients, if necessary, and advertising to fill vacancies.
In addition, some management companies in consultation with lawyers are, sometimes, involved in litigation. This should mean that in choosing the right property management company, you have to take into consideration the services they could offer in connection with legalities that are usually associated with your business.
How much does it cost to hire a management team?
The usual rate would range from five to ten percent of gross rents. They may have additional charges for advertising, set-up and trips to your unit. Be sure to be clear with how much they would charge and don’t forget to talk with other companies and compare. Look for a reliable team that offers more and charges less.
Communication and Trust
Like any other relationships, trust and good communication with your business manager is very important. Establish how well you could connect with each other and the best way to reach him/her in case you need to. Communicate your concerns and ask how they will be able to address it. Verify references to ensure that your properties are in good hands. Remember, you’re going to pass on a huge deal of responsibility to take care and run your business to someone else.
Furthermore, before you close the deal, you should also know your way out in case your partnership doesn’t work. Clarify termination issues like penalties or charges for breaking the contract beforehand.