Turning residential properties into rentals is such a substantial investment that REITs, or Real Estate Investment Trusts, have been buying large portfolios of single-family homes, and holding them as rentals.

Are you interviewing management companies and property managers? Here are some things to consider.

Hiring a property manager to care for your property is a big decision. You'll want to know that your asset is taken care of and that the company you choose to work with is professional. Most people know to search for a well-known, reputable company, but what are some other things you should consider when looking for a property manager?

First and foremost you need to know your tenant very well before handing over repairs to them. Some may save you money, but others may end up costing you more in the long run. Maybe your tenant is a trustworthy, hardworking, divorced father that pays his rent on time and is handy and/or employed in a maintenance position. This would be a no brainer, and could be a good thing for both of you.

However, another type of tenant may end up costing you more money, if they don’t know how to fix things they say they can fix. They may not care about doing a good job, or they may say they will make the repairs but never do it.