How to Choose Your Property Manager
The value property management companies deliver extends beyond property maintenance tasks. Improved ROI, screening prospected tenants, reduced losses, increased rent collection, well-managed evictions, improve occupancy rates, using trustworthy professionals when needed, and relying on a vast network, that is just the beginning.
How to Choose Your Property Manager in the Netherlands | 5 Points:
1. Property and Tenant Marketing: a good property management professional may be able to target and lease to high-quality tenants that pay on time and respect your rental assets. Therefore, it is wise to fit the type of property to the right property management company to achieve the best results. For example, property managers, like Diagonal Makelaardij, who is specialized in the expat community in the Netherlands and temporary rentals, can both locate good tenants and maintain an ongoing rented state of the property upon termination, aiming for as high a vacancy rate as possible.
Ask the prospective manager how they manage tenants, including communications, setting the right rent price, and handling rent payment delays.
2. Tenant Screening: as covered in the article on tenant screening, it is vital since nightmare tenants can ruin your business and cash flow. Ask the property manager about the top 5 questions they routinely ask tenants. You cannot foresee all situations but certainly can minimize your exposure to risks.
3. Tenant Onboarding: advertising, making viewings, writing leases, getting them amended and signed, informing them of their obligations in the home, helping them get settled, and arranging rent payments. A bothersome procedure that is vital to be made meticulously by a professional property manager to avoid future inconveniences, such as unwillingly protected tenants. Remember, each city has its own rental regulations, while, for example, municipality The Hague limits a rented house to three different households at once Amsterdam limits for two.
4. Tenant Communications and Relations: check the quality and frequency of their communications with tenants. Read their reviews online and ask them to send you references from clients to hear third-party's opinions. Verify that they do keep in touch and ensure concerns and requests are handled effectively. Ask to speak to at least 2 of their tenants from different homes or buildings. Do you believe they will be good for your tenants? Do they speak respectfully and professionally? Are they friendly?
5. Property Management Fees: here's a list of questions a landlord should ask when searching for a professional property management company in the Netherlands:
What are their monthly fees, and what does it include? Ask them if they are billing or deducting directly from owner accounts.
Do they break their property management fee down into a type of property and a percentage of rent? It is usually 5 to 10% of monthly rent but could be up for only one property. You might want to talk about a performance penalty/bonus to test whether they are confident of their skills.
Do they need a reserve fund or maintenance fees upfront? Do they notify you beforehand on maintenance/repair work of more than €250?
Do they have their contractor crew and how do they charge for that service?
Will they agree to a penalty if they bring in a tenant that leaves within less than 4 months?
What is the term of your agreement and how can it be terminated? What are the fees if you cancel early?
It is best to know beforehand all the answers before you sign a property management contract.
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