When you are looking to find property management companies in Colorado Springs, CO to take care of your investment, don’t settle for the first one that you find. The time you take to evaluate a range of options will be well spent. You are making a huge ‘purchase’ here and you want to compare companies to find value for money, an extensive list of services and with impressive reviews.
Now you might be tempted to base your comparison on “how much do they charge?”. But this question will not cover what you should really know about the property management company. One property manager could have a low monthly fee but then when you look at their service offering, it’s thin. Or their reviews are so bad online that you realize why they are charging such a small amount –they’re not very good at what they do. Sometimes there could be a low fee but when you see the final bill you realize there have been a ton of hidden charges that are not covered in your contract. In these cases, it would have been better to have an all inclusive monthly fee that doesn’t have any nasty surprises.
The first thing you are going to need to do is have a checklist of all of the services a property manager could offer and then compare companies based on your list. This is what should be on your comparative table list:
Determines a Realistic Rental Rate
- Executes a detailed evaluation of the interior and exterior of your property
- Takes photographs of the entire space
- Suggests areas for repair that could improve the rental rate
- Offers recommendations on cosmetic improvements to further increase the rental rate
- Compares recent rental data in the area to determine the going rental rate in that suburb
- Opens discussion about whether to allow pets, smoking etc. and unpacks the pros and cons of the different decisions
- Will install a lock box
Handles All Property Marketing
- Gets the property clean and optimized for tenant viewing
- Takes care of landscaping
- Creates the advert for your property rental
- Lists your property on free and paid for websites, print media, outdoor signs, MLS and fliers
- Collaborates with other leasing agents to find your ideal tenant.
- Creates a 24/7 hot-line or website chatbot that tenants can use to hear an extended list of specs about the property
- Handles all queries on the property
- Sets up viewing times for prospective tenants.
- Shows potential tenants the property throughout the week and weekend
- Ensures that all rental applications given to prospective tenants are legally compliant
- Collects and administers all applications and the applicable fees
Conducts In-depth Tenant Screening and Final Selection
- Performs a thorough background check
- Verifies income, credit score and calls previous landlords for input
- Ranks tenants based on pre-determined criteria
- Follows up and informs prospects who didn’t get the lease
Pre-Process Before Tenants Take Up Residence
- Ensures the creation of the leasing agreement
- Communicates with the tenant to decide on the move in date
- Discusses lease guidelines, payment terms and property maintenance expectations before they move in
- Is present when the tenant moves in and does a full inspection with them culminating in the signing of a report of the condition of the property at move-in.
- Collects the security deposit as well as the first month’s rent
Handles The Collection of Rent Every Month
- Ensures rent is paid on time
- Chases late payments and enforces late fees
- Delivers pay or quit notices
- Initiates an unlawful detainer action
- Files all relevant paperwork
- Represents property owner in court
- Deals with removing tenants and their possessions from the property with the assistance of law enforcement.
- Is able to advise the property owner in the event of any legal disputes or litigations
- Can either refer the owner to a trusted attorney or has in-house attorneys as part of their property management company
- Abide by the latest local, state and federal legislation
Conduct Regular Inspections
- Engages in inspections at a predetermined time
- Inspects property for signs of repairs needed or safety hazards that need attention
- At inspections they look for any code violations or lease violations
- Deliver a report to the owner after each inspection on the current condition of their property.
Manages all Financial Requirements
- Does all of the accounting for the owner
- Can make mortgage, insurance, HOA dues on behalf of the owner
- Provides documentation of all income and expenses
- Houses all historical records linked to paid invoices, leases, warranties etc.
- Prepares an annual report for tax including a 1099 form.
- Acts as a tax advisor on all tax deductions related to the property
- Delivers monthly cash-flow statements.
Takes Care of All Maintenance Related Issues
- Oversees all maintenance work
- Policy of preventative maintenance
- Deals with all repairs using an in-house work team or trusted contractor who is insured, licensed and bonded
- Takes care of leaf and snow removal, landscaping, trash removal
- Offers a 24-hour emergency maintenance hotline
- Procures bids for any renovation work
Facilitates Tenant Move Out Procedure
- Does a full inspection when the tenant leaves the property
- Inspection report goes to both owner and tenant which highlights any damages that the tenant will need to pay for
- Pays the tenant their security deposit (if there are no charges for damages etc.)
- Ensures the unit is professionally cleaned to prepare for the arrival of the new tenants
- Re-key all of the locks on the unit
- Starts marketing the property gain
How they Structure their Fees
- What is their current monthly fee?
- Is there a fee for starting or renewing a lease?
- Do you have to pay fees even when the property has no tenants in it?
- Are there any additional advertising fees?
- Are inspections included in the monthly fee?
- Do they require a specific fee to be held in reserves?
This is an extensive list that can really excavate what a property management company should offer. Tally up the ticks in the boxes and see which property management company offers the most services and for what fee. Start by looking online for adverts of units in the area where your rental property is situated. Look at websites, local listings and popular platforms like craigslist to see which property management company names frequently pop up. Start with these property management companies who are actively pursuing tenants across the web. Then meet them face to face with your check list. Find out how many properties they currently manage, if their rent collection rate is higher than 95% and if they secure an average occupancy rate of longer than two years.
If you’re looking to find a property management company in Colorado Springs that checks all of theses boxes please give Galvan and Gardner a call. Thank you!