5 Questions to Ask Before Investing in Property Management in Corona
Depending on the nature of your real estate investment, it could be a good idea to hire a property management agency. More and more Californians are hiring property managers, especially in the growing city of Corona. Whether you have been renting out your property for a decade or it is a new venture, a property manager can help.
Choosing an agency that specializes in property management in Corona can be a daunting task. There are several agencies to choose from, some better than others. The first piece of advice to follow when making the partnership is to set up a consultation. During that meeting, be sure to ask these 5 questions before signing a contract.
How does insurance work?
Every property management company in Corona will come equipped with an insurance policy. This policy covers their overall business, including tenants, clients, and the actual property that is being managed. A solid insurance plan will protect you from a variety of negative occurrences, everything from liability claims to burglary.
What services are provided by the agency?
Every property management agency is different when it comes to the services provided. Some allow the owner to have a completely hands-off role in the property, and others not so much. It is your job to first determine what services you deem necessary and how involved you wish to be in the property.
If you live out of state and are renting your Corona property to tenants, you’ll need a management company to take the reigns. They will handle everything from tenant turnover to collecting rent each month to building maintenance. If you live just down the street from the property in question, you have to decide how involved you wish to be.
How much does the service cost?
Whether this is the first question you ask or the last one, it is important to understand exactly how much you’ll be paying for your property manager. You’ll obviously have to pay your agency for their services; generally this works on a percentage basis (anywhere from 15 to 25% of the property’s income).
Is the agency accredited?
Not all property management agencies will have accreditations, but finding one that is indeed accredited is important. An accredited agency has higher standards and tends to do a more thorough job. The agency itself should be accredited, as should the individual staff members.
You agent should have the proper certifications to meet the education requirements for property management. Look for accreditation from organizations like the Institute of Real Estate Management, a leading name in real estate.
What types of properties are managed by the agency?
Larger more reputable agencies will have experience managing a variety of properties, everything from houses to 8-unit complexes. However, some agencies manage only speicifc types of properties.
It is important to research this ahead of time since managing a 2-bedroom house is much different than an apartment complex. The agency needs to have expertise and experience that fits your needs.
