When it comes to hiring a third-party property management company, there are benefits to hiring local, rather than national companies. According to property management firm P. B. Bell, local firms have more nuanced expertise, including economic growth, housing regulations and industry resources, all of which can impact the value and success of an asset.
“There are diverse benefits to hiring a local property management company to manage your asset, including the fact that a local team will be far more in tune with the economics, growth, nuances, and opportunities in that city,” Debbie Willis, president and designated broker of property services for PB Bell, tells GlobeSt.com. “They will be aware of landlord tenant statutes that can significantly impact the community as well as have wider connections within the city with local brokers and industry experts that can benefit the asset. Local firms live and work within your invested location and have the experience and expertise needed to maximize your asset value.”
Despite the benefits of hiring a local team, many property owners turn to national firms for property management services. Willis says that this is really about convenience. “Logistically, it may be easier to use a national firm rather than a local one if an owner has assets across the country,” she says. “But does that convenience outweigh the benefits? In our opinion, it does not. It may also be more difficult to find the top performing local management companies. Everyone knows the large, national firms, but finding the local expert can take a bit more work.”
An even bigger benefit is that local firms face the same challenges, not additional challenges, according to Willis. For local firms, the biggest challenge can actually be getting the attention of property owners. “Local and national firms face the same operational challenges, however, a local firm has an edge when it comes to local knowledge and relationships,” she explains. “The primary challenge for a local team is simply being considered for the job. Again, everyone knows the large, national teams, but finding the local expert usually takes more effort. It's more difficult to find the diamond in the rough.”
For owners, however, vetting a local company can be more rigorous, however, the process can pay off significantly. Willis recommends looking for an experienced company. “First and foremost, is the company experienced and established in the local market and does your asset fit in their portfolio? Ask around, talk to people, tour their properties, do some research to learn more,” she says, adding that having industry relationships is also important when picking a quality team. “The local company should have strong relationships within the market—their reputation should precede them and it should be easy to obtain word-of-mouth recommendations and referrals for the company.”
Finally, owners should look for a company that aligns with their company culture. “Is there chemistry or a connection between the owner and the individuals on the team? Both parties will be working closely with each other, so feeling a certain level of trust even at that first meeting is critical,” adds Willis.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Kelsi Maree Borland
