Investing in rental properties can be a lucrative venture, but it also comes with its share of challenges. One way to ease the burden of managing your properties is by hiring a professional property manager.
A property manager can handle day-to-day tasks, tenant relations, and ensure your investments remain profitable.
However, finding the right property manager requires careful consideration and asking the right questions. In this article, we’ll discuss 15 essential questions you should ask when interviewing a property manager to ensure they meet your needs and expectations.
What are the various services that you offer?
Understanding the range of services a property manager provides is crucial.
Some managers may only handle rent collection and tenant placement, while others offer comprehensive property management services, including maintenance, inspections, and financial reporting. You’ll want to find out if there are additional fees for those services.
How many rental units do you manage?
The number of rental units managed can give you an idea of the company’s experience and workload. While a larger portfolio may indicate expertise, it’s essential to ensure they have the capacity to give your properties the attention they deserve.
I prefer the larger operations as they’ve seen it all…many times over. That and they have systems and processes in place for everything.
What experience does the company owner have in property management?
Knowing the owner’s background and experience in the industry can give you confidence in their ability to lead the property management team effectively.
How do you determine the rent amount?
A good property manager should have a thorough understanding of the local rental market and be able to set competitive and profitable rental rates for your properties.
My property managers know what the rent will be right away depending on size, location and condition. They’re dialed into the market.
Are you currently an active real estate investor in your market?
An active real estate investor has a deeper understanding of the local market dynamics, which can be beneficial when managing your properties.
What are the terms for canceling any agreement that I have with you?
Understanding the terms of the contract and the process for termination is crucial to avoid any potential disputes in the future. You’ll want an out because there’s a good chance that the first property manager doesn’t work out. You don’t want to be stuck.
What are your management fees?
Discussing the management fees upfront will help you compare costs and ensure that the fees align with the services provided. You’ll also want to find out at what scale those fees go down, if at all.
Are there any fees when the property doesn’t have any tenants?
Some property managers may charge a fee even during vacancy periods, so it’s essential to clarify this aspect.
What miscellaneous fees could I be charged for the management of my property?
Ask for a breakdown of potential additional charges, such as maintenance mark-ups or advertising fees, to understand the complete cost structure. I’ve seen it to where they charge a fee to manage the trash removal and snow removal companies. Know what you’re getting into.
Do I have to sell my property with you if I want to list it?
Ensure that the property manager is not entitled to the sale of your property if you decide to list it for sale. Property management and real estate sales are two different things.
When the time comes to sell, you want to make sure the decision on who it’s handled through is yours.
Do you offer direct deposit for your tenants and owners?
Direct deposit makes the rent collection process more convenient for both you and your tenants.
This comes down to the systems and processes that the property manager has in place. The smoother the process, the more likely your tenants will stay and you’ll avoid the revenue loss from turnovers.
Do you conduct property inspections, and if you do, what charge is associated with them?
Regular property inspections are crucial for identifying maintenance issues and ensuring tenant compliance. Understanding the inspection process and any associated costs is essential.
What are the steps you take if an eviction is needed?
Knowing the property manager’s eviction procedures and experience in handling such situations can help you feel confident in their ability to handle challenging tenant scenarios…which will come up. The more times that they’ve been through the process, the easier it is.
What steps do you take to market properties?
A property manager should have a solid marketing strategy to attract potential tenants efficiently.
A larger company will even have a database of potential tenants to plug into your units. Tenants that they’ve already vetted and have a history with.
What is your average days on market?
Knowing the average time it takes to fill vacancies will give you an idea of their marketing effectiveness.
Hiring the right property manager is essential for the success of your real estate investment venture. By asking these 15 essential questions during the interview process, you’ll gain valuable insights into a property management company’s experience, services, fees, and processes. Take the time to find a reputable and competent property manager who aligns with your investment goals and ensures your properties are well-maintained and profitable. During the process, document who your second and third choices were. That way you can pivot quickly if needed. Remember, a skilled property manager can be a valuable asset in maximizing your returns and providing peace of mind as a property owner.
