10 Things To Ask Before Hiring A Property Manager

10 things to ask before you hire a property manager

Finding the right property management company can be a time-consuming process. Property managers are trained professionals who should know more about your rental property than anyone else, including yourself, and will handle all of its day-to-day operations. Before you hire a property management company ask them these 10 questions to make sure you’ve found the right property management team of professionals to take care of your investment.

1. How long have you been a Property Management company?

A property management company that has been in business for more than five years can usually guarantee that they have the experience necessary to handle difficult situations and maintain the value in your property. Property management is a career field on the rise with high demand, many property management companies are eager to gain your business.

2. Is your property management company fully licensed?

Before hiring a property management company ask them to produce their property management licenses and certifications for your review. If they can’t produce them it may be an indication that they are not a legitimate property management company.

3. Does your company have property management insurance?

The property management company you choose to manage your property should have insurance. Property management insurance is an absolute must for every property management company so they can protect themselves, their properties, and their clients.

4. How much does your property management company charge?

Property management companies’ fees ranges vary from company to company depending on what services you require, the size of your property, and how much work their property management team is expected to do. Ask them about their fee structure before you hire them to make sure their property management fees are within your budget. Also make sure that you understand the mark ups they charge for repairs and maintenance of your property.

5. What is your experience with the area I’m looking to rent?

Do they know anything about the neighborhood or building you are renting? Property management companies that are local to the area you’re looking to rent will be able to point out the pitfalls of certain buildings and neighborhoods.

6. Do you have references?

Before hiring a property manager make sure they have multiple references. You can also check their Yelp page and/or Google reviews. Make sure to take these reviews with a grain of salt, some might be from disgruntled tenants who didn’t like that their lease was enforced.

7. What are you responsible for?

Property mangers are usually responsible for property inspections, creating qualified tenant lists, marketing the property, completing applications, showing the property to potential tenants, performing background checks on the applicants and helping you negotiate the lease agreements. They should also be generating reports for you so you know what is going on inside of your property and limit the surprises.

8. How do you get paid?

The simple answer is that typically property managers get paid by landlords and collect their commission once the tenant moves pays their first month of rent. The tenant is responsible for paying the rent and property managers typically collect a portion of the monthly rental income as compensation and then pass the remaining portion on to the landlord.

9. What are some common problems you encounter on a day-to-day basis?

Property management is not an easy job and property managers should be able to tell you what some of the more difficult situations they handle are on a daily basis. Property management companies usually specialize in specific industries or types of properties, so knowing how they treat their current book of business will give you an idea of how they would treat you and your investments.

10. What kind of payment options do you accept?

The property management company should have no problem accepting payments via check, cashier’s check, credit card, money order or wire transfer. Property managers usually don’t need advanced notice to take payments from their tenants. Property management companies should have the ability to set up reoccurring payments (autopay) if the tenant will authorize the payments.

This list should get your started before your hire a property manager to avoid costly mistakes and surprises on the back-end of your property investment portfolio.

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David Mathewes

David Mathewes

David has been in the real estate industry for over 10 years and knows that a team always outperforms a single agent. That is why he puts his clients first and makes sure to stay ahead of market trends. By taking the time to serve each client individually, David has been able to create returning and referral-based clients. When he's not helping clients buy or sell homes, David can be found exploring Denver, spending time with his family or looking for the next best place to enjoy a meal with friends!

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