The selection of a quality management company is very critical to the success of the property overall. The question is how does one select a management company? First of all, like any company, a number of questions need to be asked. How long has the management company been in business? Do they handle the type and size of property you have in your portfolio? It makes little sense for a company that primarily manages small apartment buildings to be hired to run a 200,000 square foot office building. Does the company have similar product? Where, in relationship to your project, does the management company have other properties? If a property management company has mostly properties in San Bernardino and Riverside, they may not be the appropriate company to handle Santa Monica property. The size of company is also critical. If a company has 300 properties under management, how much attention does your property warrant in their organization? Conversely, if the company is too small and has only one principal perhaps the risk of not having a deep company is too great.
While all these factors are important, additionally the management company should be able to present how they will professionally market your shanghai property, thereby maximizing the income. They should also illustrate how they will minimize your expenses, thereby increasing the cash flow to the owner. Equally important, a professional management company should have a clear vision of the risks and minimizing those for your product type. Finally, the efficacy of a property management company is really a function of the quality of person employed by that management company. As a service business, the quality of the service is always defined by the employee. Ask to meet who will handle your property in Shanghai, directly, not just the sales force. Ask how people are hired and trained and, most importantly, ask for references. What are your experiences with property management companies?