Congratulations! You are now an investment property owner. Now you need a property management company to help you with your property.
Questions To Ask Your Property Management Company
About The Property Manager
- How long have you been a property manager? The longer they have been in business, the better their track record can be proven to you.
- What kinds of properties do you manage and how many are you currently managing?Ask this because you want to have a property management company that is familiar with the ins and outs of leasing out your property. If they mostly manage apartment complexes and you have a single family home, that could be an issue. You also want to be sure that they aren’t over extended meaning response times will be slow.
- What associations do you belong to? This could include local chambers of commerce, Better Business Bureau, etc. They can be a font of information about their business practices.
- How many vacancies do you currently have and how long does it take you to fill each? Obviously, a higher vacancy rate will mean something is amiss. Also, it will tell you how long your property may remain unrented.
- Can I see your current lease or have my attorney review it? If they aren’t willing to let you see or have their form lease look elsewhere. Violating local and federal laws with tenancy can be a huge problem.
Inspections & Repairs
- How often do you inspect properties? Keeping a regular inspection schedule will mean your property will be maintained properly.
- What process do you follow for repairs to the property?
- Do you set the limit for repair costs before consulting me or do I?
- Do you get competitive rates from your contractors?
- What is the bid process for large repairs?
- What are your policies surrounding collecting rents?
- How late do you allow people to pay?
- Do you allow them to pay electronically?
- When will I receive payments?
- What are your eviction procedures and how often do you have to evict?
Property Management Fee questions:
- What are your management fees?
- What other fees do you charge (i.e. for eviction, renewal, marketing, contract cancellation and/or account set up)?
- Do you charge to find a new tenant? Is there a fee when the unit is vacant?
- If I sell the property, do you handle notices to the tenants?
- Do I have to list it for sale with you (if it’s a real estate company that is managing it)?
- What is your screening process for tenants?