How to Avoid Hiring a Bad Management Company

by | Jun 19, 2013 | Real Estate

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When you begin your search for a high quality real estate asset management Scottsdale company, you need to research extensively and put extra effort into the search in order to locate the best company for your particular needs.  Searching for management companies in the area and glancing at their references will not cut it.  Property owners will have to be aggressive in their search to find a quality company that will not damage them financially.  There are a few things property owners should beware of in order to avoid bad management companies.

Look for Quality Not Low Prices

Low rates do not always mean you are getting the best deal.  Property owners need to be leery of any company that charges rates that seem unbelievable.  Price should not be a factor in your determination of whether or not a management company is good or bad.  You need to look at the bigger picture of what services the management company offers, their track record of results, and how broad their service scope is.  Research each candidate thoroughly, and check every reference you receive.  It is probably a good idea to contact the Better Business Bureau as well to determine the legitimacy of each company under consideration.  Property owners should even go so far as to drive past properties that are currently under each company’s management.  When you are placing valuable real estate in the hands of any company, you need to grill them extensively to learn about their business practices and capabilities.

Short Trial Runs and Accountability

Before a long-term contract is ever committed to, a property manager needs a trial run to actually see how the company they hire will perform with their properties.  Never sign a long-term contract initially.  You could end up regretting your decision.  Three to six months should be enough time to decide if they are worth the money or your time.  There should also be a clause inserted that states the property owner is able to terminate the contract immediately if the management company has committed gross misconduct.  Anytime a property owner hires a real estate management company, they need to stay vigilant and hold them accountable.  The management company should give regular property performance reports, and they should be organized enough to produce records and financial statements upon the request of the property owner.