3 Considerations For Overseas Landlords To Negotiate A Sweet Deal With A Property Management Company
If you're an overseas property investor or simply don't want the hassle of managing rental properties on your own, then hiring a professional property management company is a good idea because they will take care of all property-related aspects in your absence. But getting maximum value from your property manager requires careful consideration. This guide aims to equip you with certain considerations to negotiate a sweet deal with your property management company, as an overseas landlord.
Establish The Frequency Of Inspections
Your property manager should give you a guarantee of the number of inspections they will conduct in a year, along with a detailed report about the condition of the property. The frequency of inspections should include a tenant ingoing property condition report, which is based on the physical condition of your rental before the tenant moves in. The property manager should also provide routine inspection services every few months, based on mutual agreement between all parties involved. A vacating inspection is vital to establish the property condition in comparison with the original ingoing report. Upon completion of all inspections, your property management partner should provide a comprehensive report detailing all aspects related to your rental.
Determine The Screening Process Of Prospective Tenants
Since you're not in town, it's almost impossible for you to screen your prospective tenants thoroughly. A poor tenant decision can cause you a great deal of stress, which is avoidable with a good tenant screening process. To ensure that good quality tenants are selected, your property management partner will need to do an extensive background search for each applicant. This background search includes an identity check through any government issued ID card, a previous tenancy check through past landlord references, an employment verification check through an employer-issued letter or pay slips and a credit score check through a credit rating agency.
Ascertain That Certain Added Expenses Can Be Handled By Your Property Manager
As an out-of-town landlord, you probably don't have the bandwidth to pay all invoices related to your rental property, so you'll want your property management partner to take care of all the expenses on your behalf. With your consent, your property manager should be able to pay selected expenses like maintenance costs, repair costs, drainage rates and council rates. All expenses made for you should be detailed in a monthly, quarterly or annual report for your eventual taxation purposes.
Follow these considerations if you're looking to negotiate a sweet deal with a property management company (like PRDnationwide).