How to Ensure That You are Choosing the Right Property Management Company

Investing in real estate can be a lucrative pursuit, but managing the property you own is endless work if it is a residential or commercial property with multiple tenants. Hiring a property management company can save you a lot of trouble, but it can also create a whole new set of problems, each more expensive than the last. Property management companies might have an impressive web presence, and their representatives might make a great impression in your interactions with them, but sometimes the problems only surface after you have hired the company to manage your real estate properties. Here are red flags to watch out for; paying attention to these can help you steer clear of property management companies that will cause costly problems for you and your tenants. For more help resolving and preventing landlord/tenant disputes in situations involving property management by third parties, contact the Denver real estate lawyers at the Law Offices of Eric Nesbitt, P.C.

Managing Too Many Properties

Before choosing a property management company, find out how many properties they manage. It is risky to work with companies that manage a large number of properties because there is more potential for bureaucratic mix-ups, the greater the number of people involved. Likewise, if a company has only a few staff members relative to the number of units they manage, the chances are greater that they will be hasty and disorganized in their work.

High Turnover of Staff

It is a bad sign when no one wants to work for the company for more than a few months. Likewise, if the company tends to assign employees to new locations on a frequent basis, it is a recipe for chaos, miscommunication, and burnout. Frustrated employees and frustrated tenants tend to go together.

Disorganized and Inaccurate Record Keeping

Plenty of disputes arise or escalate because of record-keeping errors by property management companies. They should keep track of everything from rent payments to maintenance costs, and they should be willing to show you the relevant records upon request. You should ask for frequent updates about financial records, and if you find out early on that details are missing or that the numbers seem improbable, speak up sooner rather than later. Most of the time it is a case of poor management rather than fraud, but in either case, it could mean big trouble for you as the owner of the property.

How a Real Estate Lawyer Can Help

Before you choose a property management company, you should sit down with a real estate lawyer and talk about your financial goals for the property and your vision for how it should be managed. Having a clear set of expectations and a thorough understanding of the legal issues can help you avoid problems with property management companies.

For questions about property management disputes or other real estate needs in Colorado, contact the Law Offices of Eric L. Nesbitt, P.C. at (303)741-2354 or info@nesbittlawoffices.com.