Real Estate investing is very profitable and can be a great way to build your wealth. The Wisconsin Real Estate market is very stable and a great place to invest in rental property, however, properly managing your rental investments can be a full time job. This is where many turn to a professional property management company to handle the day to day operations of the property. Selecting the right property management company will ensure your investment grows while you avoid the everyday headaches of owning rental property. There are many property management companies in Wisconsin to choose from and many things to consider when deciding which property management company to hire. The following are the top 10 things to consider when selecting a rental property management company in Wisconsin.
1)Verify that they are properly licensed for property management. Wisconsin requires all property management companies to possess a real estate broker license. Companies that do not have the proper licensing should not be offering property management services.
2)Make sure they have a real estate trust account for third party funds. They will be handling yours and your tenants money and are required to have a trust account that can be audited by the State of Wisconsin.
3)Verify that your property management company is fully insured. A property management company should be listed as an additional insured on your policy and also have a general liability policy of there own.
4)Verify that your property management company has an automated bookkeeping system that is regularly backed up and accessible.
5)Make sure you check references. If the property management company is respected and reputable they will be more than happy to provide you with a list of reference contacts.
6)Make sure they have a solid process in place for choosing tenants. Do they check their credit, criminal records, income qualification, etc? Many property management companies fail to conduct proper background checks and this can be very costly and potentially dangerous to your property. Avoiding the eviction process should be a major goal for any property management company.
7)Verify that your property management company is professional in its business practices and that their employees possess a professional appearance and proper manners. They will be representing both you and your property.
8)Make sure they do scheduled inspections, both interior and exterior. Inspections insure the property is being properly cared for, tenants are obeying the rules of the lease, and can prevent problems from growing out of control. They will also help you budget for future repairs that will be needed.
9)Make sure you fully understand all their fees. Typically, there is a tenant acquisition fee and also a monthly management fee. Ask how their maintenance and repair labor is charged and also if they markup sublet vendors invoices.
10) Verify that you have fully reviewed your property managment company’s lease forms and be sure to address any specific terms that you find to be important. Some good examples of things to address are: pets, smoking, yard maintenance, painting, etc…
MPC Property Management has taken over many properties in Wisconsin where the former property management company did not meet many of the above items. These have become our best customers because they know what it is like to not have a property managed properly. I hope I have provided a good checklist of things to consider when choosing a Wisconsin property management company. I would be more than happy to answer any additional questions you may have in regards to Wisconsin property management so feel free to contact me or vistit our website for more information.