Interview Questions for Your Property Manager
Once you’ve decided that hiring a property manager is the way to go, it can be difficult to determine which property management company is right for you. This is why it is recommended to treat the hiring of a property manager the same as if you were hiring a new employee. Interviewing prospective property management companies can be challenging, but it is a necessary option when you place your property in the hands of another person.
How many rental properties do you manage?
This question is important, as the number of properties managed by the property management company can mean the difference between swift response for a plumbing emergency in your property, to the screening practices that are utilized for potential tenants. If a property management company only oversees a few rentals, they might not have the skills necessary to ensure that your property is well maintained. It has been recommended to find a property management company that oversees the operation and management of at least 200 units, but fewer than 600 units (Hall, 2016).
What are the fees associated with managing my property?
The fees paid to property management companies can often be done on a flat rate fee, while others may base it off the rental amount. Other property management companies may offer a variety of plans, such as lease only, standard, and premium. All of this can sound a bit overwhelming, but this is why it is important to inquire about the fees associated with managing your property. Typical fees associated with the management of your property is between 8-12% of the monthly rental rate for your property, plus expenses that may arise (Van Steenwyk, 2014). Other companies may charge a flat rate of $100 per month. Also, keep in mind that there may be additional fees for vacant units, maintenance, evictions, and late payments (Van Steenwyk, 2014).
How do you screen potential renters?
You wouldn’t let just anyone off the street or a stranger in the grocery store to drive your car, would you? Therefore, screening potential renters is important, as the property is one of your belongings and should be treated as if you were living there. While most tenants will behave respectfully while living in your home, others will not be as responsible. Screening tenants prior to them moving in can end up saving you time and money, as well as a bit of sanity!
Here are some common screening procedures that can help you to determine if the property management company you are considering is right for you (Colley, 2012):
- Do they request that potential renters fill out an application?
- Do they review the credit of the potential renter?
- Do they run a background check on all of the adults who will be residing in the home?
- Do they contact the previous landlords?
- Do they speak with the employer and/or personal references?
What is the procedure for tenants vacating the property at the end of their lease?
There are a few reasons why tenants may end up vacating your property, and it is important to know the procedures that the property management company follows in these types of events. If the tenants have fulfilled the requirements of their lease, it can be relatively painless. The more streamlined the process happens, the quicker the property can be rented to new tenants. The use of a tenant checklist can allow for items such as debris on the property and burnt out lightbulbs, along with any damages are accounted for prior to the tenant vacating the property (Green Residential, 2015).
Conclusion
As you can see, finding the right property management company to oversee the responsibilities of ensuring that your property is well-maintained is an important step when it comes to placing your property into the hands of another. Screening potential property management companies may be a time-consuming process, but it can put your mind at ease once you find the one that you feel the most at ease with handling your property.
References
Colley, A. (2012). How to screen potential tenants: Questions, credit & background check. Retrieved from http://www.moneycrashers.com/screening-potential-tenants-questions-credit-background-check/
Green Residential. (2015). Get the tenant move-out process down to a science. Retrieved from http://www.greenresidential.com/get-the-tenant-move-out-process-down-to-a-science/
Hall, L. (2016). Top 20 questions to ask before hiring a property manager. Retrieved from http://www.landlordology.com/questions-to-ask-a-property-manager/
Van Steenwyk, J. (2014). How much do property managers charge? Retrieved from http://www.allpropertymanagement.com/ask-a-pro/much-property-managers-charge-2/
