4 Key Factors To Look For In A Property Management Company
Property management companies specialize in commercial property management such as offices, industrial and retail, while some specialize in residential, and others are just strata.
For anyone owning commercial property and making the decision to hire a property management company to manage it, the need for an experienced and qualified commercial property manager is paramount.
In choosing a property management company, there are many factors to consider, but below are 4 important ones:
1. The company should specialize in same asset type, ie. commercial vs. residential
The company hired should be managing buildings that are similar to the ones owned in terms of complexity and asset class. If it is a residential property, then hiring a company that has a large commercial rental portfolio is not advisable and vice versa. Each has a different training and service approach, and each has different accounting practices, legal framework and operating systems.
2. The management should be licensed and have up-to-date training
Many real estate agents offer property management as part of their service offerings to their clients. They are licensed and their license can be verified by visiting the Real Estate Council of BC website and performing a license search. Hiring a licensed property manager will gives protection in many ways.
A licensed property manager has training in important topics in the broad spectrum of legal issues, is well versed in the Real Estate Services Act, has training and knowledge in leases, insurance, budgeting and is well versed in professional ethics. The licensed property manager is also kept abreast in all current legislation and best practices of the industry.
3. There should be sound property management systems and procedures in place
A property management company should be using industry specific software, which provides efficient accounting and reporting practices and procedures. These systems track rent increases, due dates, lease expiry dates and other relevant information that is important to a landlord.
For any landlord, an optimal property management company should be proficient in submitting invoices, collecting rents on time, collecting arrears and recoverable expenses. The landlord should be getting monthly operating reports to keep updated as to the status of the property.
4. There should be dedicated trust accounts
The property management company must maintain one or more interest-bearing trust accounts. The BC Financial Services Authority (BCFSA) requires 3 types of trust accounts:
- Designated trust account for the individual client.
- Pooled trust account, which holds funds on behalf of more than one client.
- Pooled trust account used to flow through electronic deposits and/or payments.
If you are looking to purchase an income producing rental property, our advisors will promote and market your listing and procure the best tenants in the shortest time. Contact us by email or call us on 604 913 1000 for further information.