Property Management Blog

Proper mechanisms must be in place when it comes to rent collection and rent setting for aproperty management Norfolk business. Naturally the key to getting higher than average returns on investment is getting this equation right in the first place. So here is a list of questions that every landlord must ask the property management firm prior to taking on their services:

1. How do you determine the rental rates? There is a whole science involved in this process. A manager has to keep himself abreast of local markets and changes in it. There are certain rules that come in handy for determining rental rates but these are just for reference and should not be considered above current market analysis. Additionally, the rental rates will determine the vacancy rates and your target should be to get the units rented out within a month.
2. How often are rents increased? Management companies must ensure performing surveys every year to determine these increments.
3. Contractual rent escalators- These are factors that allow a company to increase rents without the need to negotiate, provide notice or offer explanations to tenants. Do make sure that you ask your company whether these are included in the contracts.

Additional questions to ask regarding rent collections include: how the rent is collected and how the company deals with delinquent payments and bounced checks etc.