According to recent data from KNBS, about 70% of Kenyan landlords choose to self-manage their rental units. To many landlords, it is a way of reducing costs while remaining in control of their investment. However, when your rental portfolio exceeds self-management, you will definitely need some help to undertake the operations. This is where a property management company comes in. But not just any management company can do the job, you need a reliable agency to help you. Â
In my years of real estate, I have seen many landlords get frustrated by the agents they choose to handover management to. Whether it is lost rent, being lied to, getting overcharged for maintenance, the wrong property manager can be a big problem. That is why I have decided to prepare this guide, the aim is to give you tips you can use to help you decide which property management company suits you.
What a reliable property management company entails
1. Check their years of experience
The first thing you need to check is their years of experience. Bad companies often don’t survive for too long so if you meet a company with 10+ years of experience, you immediately know that they have been doing something right for them to be in business for that long. Moreover, long experience gives the company technical expertise that enables them to effectively manage your property.
2. Ask other landlords about their performance
Talk to landlords whose rental properties are under the management of your intended company to get a glimpse of their performance. If a company is known to be unprofessional with other landlords, chances are they will be unprofessional to you. Some of the questions you should ask other landlords include;
- When does the company remit rents _________________?
- How do they handle bad tenants ________________?
- How much is their management fees _______________?
- Do they keep the property clean ________________?
- How transparent are they when managing your property ____________?
- What are some of the benefits of working with them _______________?
- What are the disadvantages you have experienced with them _________________?
3. Do they manage similar sized units as yours?
The next question you need to establish is if they manage units similar to yours. Let’s assume you have a 4-storeyed residential building, you should establish whether the property management company has managed similar properties. You can even ask the company for their portfolio and see which units are similar in operations, size and income to yours before you commit to them.
4. Get a company near your property
I often advise landlords to go for a management company with offices or presence next to your property. If your property is in Kiambu, getting a management company in Machakos might not be ideal. The advantage of a company that is local to your area is that they are familiar with the locality and know how that market behaves. They also have networks to trades persons like local plumbers and electricians who come in handy especially in handling maintenance requests. A local company also has the added advantage of quickly responding to emergencies at your property.
5. Ask tenants of their units about them
You also want to ask some tenants of the units that your intended agent manages about their conduct. Truth be told, most tenants dislike moving into units managed by agents because of the bad reputation agents have created for themselves. Most of them are known to harass tenants which could work against your property and lead to more vacancies. If the tenants you interview hint of any unprofessional conduct from the company such as harassment, then you might want to get another agent.
6. Check Online Reviews
In today’s digital world, it is easy to gather information about a company based on its online reviews. You can access this by doing a simple google search of the company and checking whether they have reviews. Your goal should be to gather both the positive and negative reviews and see if you are okay with handing over management to the company. If you notice the company has a lot of poor ratings, then this could be a red flag.
7. Clear pricing & Contracts
The last thing you need to check is whether the company has clearly priced services and contractual agreements. Most property management companies will charge you 7% – 10% of the total monthly rent collected. If you notice a company is being vague with their charges or they have contract clauses that are to their benefit, then you want to stay away from them. Always get your lawyer to go over the terms of the contract before you sign and handover management.
Alternatively, you can get good property management recommendations from us. Having worked with many agents and companies over the years, we can guide you towards the best companies in your area. Simply reach out and we will give you FREE consultation.
