Real estate isn’t a small investment, so it makes sense that you’d want to leave your property with the best of the best property management agents. But where can you find the best property management – with nationwide or local companies? We’ll cut to the chase: the answer is local companies. In this article, we tackle why national companies are a no-go, and why you should always go for local property management.
Why shouldn’t you hire a national property management company?
A common misconception among property owners is that national property management companies are superior to local property management companies. What they don’t know is that working with a national company comes with certain drawbacks. Below, we’ve broken down the disadvantages of choosing a national property management company.
#1 They have too many properties on their plate
The main drawback of working with nationwide companies is that they’re managing way too many rentals at a time. It’s not uncommon to see a single property manager handle hundreds of properties. What this means is they won’t be able to dedicate their time to you. They’ll be so busy with other properties that they’ll no longer be able to attend to yours. The property management you’ll get will be subpar.
#2 Most national companies don’t have custom services
Nationwide companies have to deal with a lot. To save time and money, they’d want their services to be as streamlined as possible. Unfortunately, this means that they have very strict procedures in place. How they handle one property will be how they handle all of their properties. Chances are, they won’t create a custom property management plan for you, as that would mean more work for them. Meanwhile, you won’t be able to voice out your concerns and manage your property the way you wanted.
As an example, let’s say you want them to conduct pet screenings but the company doesn’t usually do that. They’re unwilling to budge, so you end up with pet-owning tenants with troublesome pets that cause damage to your building.
#3 They don’t know the market well
Big property management companies might be well-versed in state law, but their knowledge of local law might be so-so. What’s more, they might not have an in-depth understanding of the market compared to a local property management company. At most, they’ll have tidbits of every market, but they can never call themselves experts in those markets.
#4 You won’t see them in person
It would be an understatement to say that property management companies are busy. Because they’re so busy, you probably won’t get to see them in person the whole time they’re managing your property. While you might be able to meet with them via video conference, you won’t have the chance to get a good reading of them. You won’t be able to ascertain whether or not they’re trustworthy or capable.
#5 They won’t be able to screen tenants as strictly
Nationwide companies want to fill vacancies at a specific rate. Since they’re concerned about their targets, they won’t bother to screen your tenants as strictly as a local property management company would. Although they use AI to screen tenants, that’s not enough – they should still use their trained eyes to spot any red flags. Failure to screen tenants properly puts you at risk of renting to troublesome tenants who won’t pay their rent on time – or worse, put other people in danger.
Why hire a local property management company?
Big companies might appear more capable, but when it comes to the game of real estate, the “little guys” (aka local property management companies) have the advantage. Here’s why choosing a local property management company is a good idea.
#1 They have local expertise
Local property management companies have the advantage of knowing the market more. In fact, many South Florida property management companies have hired people who have lived in the state for their entire lives. Since they serve a single region, they have a deeper understanding of its trends, rental rates, and so on. They know what works and what doesn’t, and therefore can make decisions that work for your market. A national property management company, on the other hand, would probably count on data that may or may not be accurate.
#2 You can connect with them
One of the reasons why you should go for local property management is that it brings something to the table that a national company can’t: a connection. Even if you’re going for full-service property management, feeling connected with your property manager is still vital. Being able to meet with them face-to-face will not only help you get a reading of them, but it will also allow you to discuss your needs in detail. After all, you want your property to be managed by someone you can trust, don’t you?
#3 They can easily collect late rent
A nationwide company can’t drive to the property to collect late rent – that would be inconvenient and not to mention costly. And if there’s anything a national company doesn’t want, it’s spending money. A local company can knock on the tenant’s door to collect rent swiftly as they’re only a few minutes away from the property. They also won’t have a hard time tracking down tenants who leave without warning.
#4 They know state, federal, and local laws
Local agents manage only one area, so they don’t have to read up on the rules and regulations that aren’t relevant to them. Being able to focus on their state’s laws allows them to abide by the law 100% of the time. You can rest assured that they’re staying up to date with ever-changing laws and that you can go to them if you ever need information.
#5 They Can Show the Property to Potential Tenants
National property management companies won’t be able to show your property to potential tenants. What they’ll do is give them a virtual walk-through. The disadvantage of this is it doesn’t show the property in its “full glory”, and the property manager can’t discuss the home’s features in more detail. A local property management company can show the property in person and answer any questions the tenant might have in real-time.
When It Comes to Property Management, Choose Local
In property management, big companies aren’t always the better choice as local companies have the “home court advantage”.
The expert property managers at Luxury Property Care have been in the real estate business for years. We’ve developed a reputation for being one of the best full-service property management companies in the state. When you choose us, you’ll get to work with a local company that knows the ins and outs of the market and that genuinely cares for the community. You can count on us for local property management. Get in touch at (561) 944 – 2992 or complete our contact form for more information.