If you’ve decided to hire a professional property management company in Portland, Oregon, you’ve made a smart choice. Good investors know that their success depends on the team they surround themselves with, and they don’t waste time trying to manage their own rental homes.
You want to make sure you’re hiring the best possible fit for your investment goals and your portfolio of properties. So we’re talking today about what kinds of things you should look for when you endeavor to hire the best property management company in Portland.
There are a lot of choices. How do you know which property management company to pick?
You have to ask some questions, and we have some suggestions.
Sophistication Counts in Property Management
We have spent more than 30 years in the property management industry, and one of the things we have learned is that sophistication can work in your favor and make you more money.
When you begin looking for property management services, you’ll find many well-meaning but very small mom-and-pop businesses. The effort is there, and they clearly love what they do. But, the sophistication level is lower than it should be, and their follow through is rarely where it needs to be.
So, you end up having a property management firm that tends to be very reactive rather than proactive. It’s not that their intentions are bad, it’s more like they don’t have the capacity to meet your needs. Some of the smaller management firms are running around playing whack-a-mole, just putting out fires. They can’t be strategic and they can’t deliver the sophisticated services you need.
You want a property management company that is proactive. Look for an innovative company that’s modern and on the cutting edge of everything that’s happening in property management and real estate investments. You need a company that’s willing to invest in technology so that they can proactively take care of the things you need.
Here’s an example of how a proactive property management company operates. They might suggest to you that the furnaces in your rental properties get tuned up in the off-season because it’s less expensive to have a heating specialist out in the middle of summer. Having those furnaces inspected and serviced will save you money in December because you won’t have a more expensive repair and your residents won’t be calling because the heat doesn’t work.
That is being proactive. This type of sophistication and forward-thinking saves you money and in some cases, it can save you a lot of money.
Licensing and Insurance: Cheaper Vendors Aren’t Better
You also want to make sure you are using a property management firm that only uses licensed, insured, and bonded maintenance companies. Sometimes you might feel like you’re paying more for these professionals, but these are companies that will warranty their work. They have a good, strong reputation in the marketplace and value your business. They will take care of you and your residents and treat you like valued customers.
When it comes to maintenance, cheaper is not necessarily cheaper, and it’s definitely not better. You’ll end up spending more than you think you are saving. We have learned this first-hand. There is a cost of doing business and there is a cost of getting things fixed and doing it right.
In Steve’s early days as an investor, he thought he was saving money, but when maintenance provider had to go out to a property three times, he actually ended up spending more to get the work done right. And, he found himself with frustrated residents. It’s hard to deal with an issue like that and to continue spending money on the same problem. If he had hired a licensed and insured professional to fix the problem the first time, it would have not only saved money but stress as well. Get the right person in there. Get the job done and do it right and move on.
Ask about Communication and Responsiveness
And when we talk about the level of sophistication a property management company needs, you need to be sure to ask the right questions.
You want to know how quickly they respond to tenants. And you will want to know how quickly maintenance issues are resolved. Ask a potential property manager if they have any preventative maintenance programs. At Mynd, we strive to respond to everyone within 24 hours and to have all maintenance requests closed within seven days. A lot of times we actually do better than that. If you can run a business like that, your residents are going to be very happy. It will increase retention and allow for healthier rent increases.
Talk About Investment Goals
When you are looking for a management company, make sure they are in alignment with your goals and your strategy. Make sure they can help you get there. You don’t want to choose a company just because they’re the cheapest company on the block. They could very easily lead you in the wrong direction. There could be mental frustrations and lawsuits that come with that.
Make sure that whatever company you choose, they are in line with what you want for your investment property.
We would be happy to answer any questions you have about how to find a Portland property management company or what we can offer you that other managers can’t. Contact us at Mynd Property Management for more information.
You can also visit our Facebook group of investors, which is called Master Mynd. It’s a real estate investors’ club, where you can exchange ideas with other owners. Check out our weekly podcast as well, called The Myndful Investor. We invite leaders in real estate and property management to talk about their success and, more importantly, their failures. There’s a lot to learn from this relatable content.