Owning rental property is one of the most reliable ways to build long-term wealth, however, managing tenants, maintenance, and accounting can quickly turn your investment into a demanding job.
Partnering with a property manager should bring peace of mind, consistent returns, and hassle-free ownership. However, choosing the wrong partner can lead to high turnover, hidden fees, and unexpected costs. Whether you are hiring a property manager for the first time or evaluating your current setup, here are six essential standards to demand before handing over the keys.
1. Be involved in the tenant selection process
Make sure the property manager verifies the tenant’s income, credit score, criminal background, and checks references with previous property managers. Ask them to lay out all of that information for you and let you make the final approval. While it is great to ask for their professional advice, being involved in this decision is the most important element of owning rental property —getting the right tenant makes all the difference!
2. Be sure to understand how they handle maintenance issues
Do they make money from work orders? Do they have an in-house maintenance team, or do they hire independent vendors?
Work-order markups can be a massive source of revenue for property managers and a major financial drain on you if you are charged a percentage on every repair. Make sure you can see the actual vendor invoices sent to the manager, and confirm that specialized trades like electrical, plumbing, and HVAC are always handled by licensed professionals.
3. Find out exactly what things you will be charged for
Ask what hidden fees exist before signing an agreement. Do they charge extra for marketing, listing photos, work orders, or routine inspections?
Transparent Pricing at Midlands Real Estate We believe in keeping property management simple and upfront. We charge owners for just three things:1. Leasing Fees for direct deposit of rent to your bank account
4. Be sure to get plenty of photos
Ask for 150 to 200 detailed photos of your house before each new tenant moves in, and another 30 to 50 photos at lease renewal. You need to know the true condition of your property even while a tenant is living there so that when a tenant moves out, there are zero big surprises.
5. Be sure that you get clear monthly statements
Check to make sure that rent will be deposited quickly into your account every single month alongside easy-to-read accounting. At Midlands Property Management, we charge a 10% late fee to tenants if rent is received after the 3rd of the month, and most of our owners have their rent deposited directly into their bank accounts by the 5th of the month.
6. Only hire a PM that you like and trust
In addition to trust, be sure you can get a hold of someone easily whenever you need to talk. Property management is built on relationships, and prompt, reliable communication is essential to protecting your investment and giving you true peace of mind.
The primary purpose of all ethical organizations should be to serve society, not to make a profit.
Ready to Work with a Partner You Can Count On?
If you own rental property in the Omaha metro or Sarpy County area and want a property management team built on transparency, integrity, and outstanding service, we’d love to help.
👉 Click here to learn more about Midlands Property Management 402.292.5111 today!