One of the most common phrases rental property owners search for when looking to hire a property manager is “management companies near me”. Why? Because rental property owners know that there is no substitute for local expertise when it comes to managing properties well. Maybe you searched the same and that’s how you found yourself here!
We of course agree that local matters and believe that when looking for “management companies near me” it’s important to understand just how local the property management company is, and more importantly, why and how it will impact your bottom line. In this article we’ll cover the specific ways “local” should (and in some cases, shouldn’t… ) matter to you in your decision on which property management company to hire.
The best property managers have vendors local to your property
The most common reason rental property owners want to hire a property manager that’s local to their properties is so that the property manager can get to the property quickly in case of an emergency. This is of course important, since keeping your asset safe and secure is a primary part of the job. That said, what’s probably more important than where your property manager’s office is relative to your rental property, is how local their vendor network is to your property.
The reality is that in the unfortunate event of an emergency, the most important person to get to your property ASAP is the vendor that will solve the underlying issue. This might be a plumber, a locksmith, or any other sort of technician. When assessing how local a property management company is, make sure to focus on how large and local their vendor network is. In practice, you’ll find this more valuable to you than the distance between their office and your properties.
Related, another reason it’s important for a property manager to be local is so that they have a strong handle on local vendors — who are the tried and true, vetted best vendors to incorporate into their network? A property manager operating remotely will have a hard time identifying great vendors, having only online reviews to work off of. Online reviews are important but by no means sufficient. Similarly, remote property managers will have a hard time recruiting great local vendors since vendors want to work with local companies they know they can rely on, too.
An interesting, and possibly counter-intuitive, note on a vendor network: while you definitely do want your property management company to be local enough to build an excellent vendor network, you also want your property management company to be big enough to negotiate strong volume discounts with these vendors on your behalf. A property manager who isn’t managing enough properties to offer scale to a vendor will end up having to charge you retail prices for repairs and maintenance. In the best case scenario you’re working with a sizable property management company, with a highly local office to your properties. This way you get the best of both worlds: local knowledge and volume discounts. (You can see an example of Great Jones’ volume discounts here).
Local property managers help investors grow
Another common reason rental property owners search for “management companies near me” is to ensure their property manager will have strong local knowledge of the rental market. This matters greatly to your bottom line! A property manager who is well-versed in the neighborhood where your property is located will be able to set market rent accurately. This means your rent will be maximized such that you won’t be leaving money on the table each month; while at the same time your rent will be in line with market expectations minimizing vacancy periods. At Great Jones, our property managers use their local insights paired with data-driven rental analyses to recommend a rent designed to earn you maximum income per property per year.
One last thing to note — if you’re considering working with a property manager who charges for drive time to and from your property, you surely want the company to be as local as possible! These fees add up. Of course your best bet is to hire a property manager who doesn’t charge you for mileage — you can check out a run down of common hidden fees to keep an eye out for here.
If you’re a rental property owner who is searching for “management companies near me”, hopefully this post has helped you unpack the specific ways “local” should matter to you when making the decision of who to hire. In short, you want to make sure your property manager has a highly local vendor network that they’ve built and vetted personally; and that they are able to pull from local insights in setting maximal rent. These things will matter to your bottom line in the long run, for sure. Good luck!