If your real estate portfolio includes properties in Memphis, you probably already know that the biggest city in Tennessee is continuing to grow. With an economy that is outpacing other parts of the US, as well as an appealing climate and culture (blues and barbecue, anyone?), Memphis and its surrounding areas are attracting plenty of potential tenants.
Unlike many parts of the country, the median single-family home price in Memphis is still under $200,000. Whether you're looking for a single-family home, condo, townhome, or small multifamily property as your income-producing rental, you can find what you need in Memphis, or within a 50-mile radius that includes Cordova, Bartlett, Germantown, Collierville, Shelby County, Lakeland, and Eads.
As a real estate investor in the digital age, you no longer need to be local to your properties in order to turn a profit. Hiring a trustworthy property management company allows you to build your portfolio with investments that make sense financially, no matter where you spend the majority of your time.
What to Look For in a Property Management Firm
Working with a property management company isn't for everyone. Investors with a small portfolio who are local to their properties often handle all management functions themselves. However, many investors find that their time is better spent on their other ventures, and hiring a firm is the most efficient way to manage their properties. The possibility of maintenance calls in the middle of the night is another reason that many property owners choose to work with a property management firm.
Selecting a reputable and results-driven property management firm is critical to the success of your rental properties. Having satisfied tenants results in longer leases and fewer costs associated with marketing your units, leading to higher profit margins each month. Firms that allow your units to remain vacant or to fall into disrepair are directly affecting your bottom line.
As you consider firms near your rental(s) in Memphis, you should feel confident that the company you choose is capable of finding and placing qualified, high-quality, and reliable tenants into your properties. They should have marketing strategies in place that reach and attract a number of suitable tenants to choose from.
Be sure to request references from other clients as well as from current tenants, and follow up to confirm that the work being done by the property management company is satisfactory to both. Keeping owners happy with filled units, on-time rents, maintained properties and respectable tenants is just as important as keeping tenants happy with timely maintenance and quick responses to questions and concerns.
On a personal level, you'll want to be comfortable with the company you select, and find them easy to get a hold of and work with. Their communications should be professional and they should discuss improvements and maintenance with you so that you can draw the highest rents possible. It may seem like a tall order, but you should expect your property management company to cover the roles of adviser, photographer, tour guide, negotiator, coordinator, 24-hour maintenance request operator, mediator, bookkeeper, and real estate agent.
In your search for a property management firm in Memphis, you will likely consider Advantage Property Management, Reedy & Company, and HomeRiver Group.
Top Property Management Companies in Memphis
Advantage Property Management
Out of these three main candidates that specialize in single-family homes, condos, townhomes, and small multifamily properties, Advantage Property Management has been in business the longest, with more than 25 years of experience. They also offer hundreds of 5-star reviews from satisfied tenants and property owners, who often cite their professional services, attention to detail, outstanding customer service, and personalized approach to each unique property.
Advantage Property Management is trusted by homeowners and investors all around the Memphis area to help them maintain and manage their profitable real estate rental portfolios.
Reedy & Company
Reedy & Company is also very highly rated, touting the services that smaller firms cannot offer: an in-house collections team, a division offering maintenance services, an accounting team, and a sales & acquisitions team. You may notice a lack of personalized attention when it comes to developing relationships and working consistently with dedicated account managers to meet all your requirements when working with a large firm.
Home River Group
Home River Group is the youngest of the three companies, with the most varied reviews from tenants and landlords. As a national chain with offices throughout the country, HomeRiver Group seems to offer the most automated features for communication, which can result in lost inquiries and frustration on the part of those trying to reach them. They do, however, boast the largest network in which you may be able to manage properties in many locations with the same company.
When it comes time to choose your property management firm in Memphis, be sure to do your due diligence before signing on. Make sure that all fee schedules are provided to you and up-to-date, and that the location and type of property that you are renting out is a good fit for the company to manage. Having your investment properly cared for and rented out at the desired rate are the most important factors in your decision, but access to and confidence in your management company are just as important to consider.
