How to choose a healthy property management company

By Glen Crozier

The property management company you choose to manage your rental is perhaps the most important ingredient of your success after making a purchase of real estate smart. This step is so important that it is imperative that you do not cut corners or go the "cheap route" to try to add to your bottom line. Paying Your management company is the cost of doing business and should be taken very seriously.

If you purchase a new property and can maintain the current management in place, it's probably the best option because you'll have less problems in the transition of ownership. Tenants love to try to exploit this opportunity to break a lease or just not pay the rent. That's why you should minimize the changes of management style as much as possible unless your plan is to make drastic changes to the property and can financially weather a temporary downturn of the occupation.

Find a management company who is not afraid to do evictions. In fact, a rate of 1 to 3 percent per month expulsion is a good thing. This means that your management company works hard to keep your complete units so that they are not longer eligible for your tenants. Some management companies raise the bar so high for tenants to be eligible when they are qualified, they could probably buy a house instead of renting from you.

Also, make sure you can speak frankly, openly and clearly with the manager, you work with. They are your people on the ground and you'll need to have a very good relationship with them. You may want to ask someone from your team present themselves as a potential tenant to test the management company and see if their professionalism meets your standards. He also would not hurt to find a couple of tenants in a property they already manage and how they like to live where they live and their views on the management company.