Property Management: Frequently Asked Questions
Why should I hire a property management (PM) company?
There are two reasons to hire a Property Manager:
Peace of mind with less direct contact with tenants
Legal compliances and protecting yourself from litigation
Hiring a property management company can save you time, reduce stress, and protect your investment. At PMI Service Group, we handle everything from marketing and tenant screening to maintenance and rent collection - so you don’t have to. We stay on top of changing laws, respond to tenant issues 24/7, and provide detailed financial reporting. Hiring a property manager allows you to buy back your time to allow you to to focus on the things you enjoy doing.
What makes PMI Service Group different from other management companies?
We believe in building a strong, connected community with our owners, tenants and community associations. Our properties and communities consist of people who want to know their needs are being cared for and valued. Our approach is to be accessible. We answer the phone! We focus on what matters: relationships, communication and being proactive in our relationships and approach to doing business.
How does PMI Service Group support communication as a property management company?
Communication is about accessibility, proactiveness and experience. We strive to be available, communicate clearly and have people that understand maintenance and construction. Experienced representatives can communicate more effectively with maintenance vendors and tenants/owners. For associations, the same is true, but we also assign a licensed CMCA (Certified Manager of Community Associations) to each HOA to be available to answer questions, notify owners of upcoming calendar events and provide knowledgeable guidance when dealing with vendors and complex construction issues. Both owners and board members can appreciate quick, prompt communication so the community members stay well informed.
How does PMI Service Group handle property management services?
We take a proactive approach to property management, handling the day-to-day operations while also planning for the future. We don’t wait for problems to happen - we work with our owner(s) and board(s) to prevent them. Our team schedules regular inspections, oversees maintenance, and manages vendor relationships to keep your property in tip-top shape or your community running smoothly.
How familiar is PMI Service Group with Financials?
Our owners come from an investing background. We love financials! We assist residential owners with portfolio assessment and HOA boards with budgeting, financial planning and long-term upkeep. Return on investment is understood and there are no surprises for communities when major repairs are needed. From proactive planning for investment properties to enforcement of community guidelines to handling resident concerns, we take care of the details so your properties continue to perform and communities can focus on building a great place to live.
What do property management companies do?
Residential Property managers handle leasing, rent collection, maintenance, inspections, tenant communication, and other day-to-day responsibilities involved in renting and maintaining a real estate investment property.
Commercial and Community management is a bit different including financials, budgets, reserves and reserve studies, owner communication and many other things.
All aspects of property management involve regulatory compliances such as Fair Housing laws, governing documents, state regulations, etc. We frequently initiate a legal review for our processes, leases and contracts to maintain compliance with federal and local state, county and township rules and regulations.
How do property management companies’ fees work?
We suggest calling to review our services with us, but generally speaking residential property management fees are 8-12% of the monthly rent depending on services and commercial properties have different rates depending on many factors.
Do property managers give any added protection?
Yes, licensed property managers also provide added protection by reducing your legal liability. PMI Service Group is fully licensed and insured to manage third-party real-estate properties. Additionally, our staff is familiar and well-versed in the often complicated rules of rental properties, property managers also help with the understanding of discrimination, disabilities, and other tenant laws that affect leasing practices including late rent, and evictions. Is your current PM licensed in Illinois?
Are property management companies worth it?
Yes! An experienced property manager is well worth the cost. By dealing with all the busy work, they free up time for the investor to focus on growth or a community board to focus on more important tasks doing what you love. Additionally, a good property manager will add security and trust to the relationship, which is important in tenant-friendly states such as Illinois. A Fair Housing lawsuit could ruin an investor and a good property manager has proven processes in place to deal with issues legally and as effectively as possible to maximize investment return.
Do property management companies need to be licensed in Illinois?
It depends. If a PM is managing their own property a license is not required. If a PM is managing properties for other 3rd-party owners, yes, a license is required in the state of Illinois. You can check the license status of any PM Company you are considering here: IDFPR License Lookup
For community management a CMCA certification as well as a pre-requisite M-100 for Illinois are required. For any questions regarding these certifications, one can review them at the CAI website.
Do property management companies pay for repairs?
No, repair costs are not included in property management fees. However, property management companies will typically have an established network of reputable contractors and vendors to handle repairs. These long-term business relationships can result in lower repair costs to you.
