Picking the right property manager requires doing research, and even interviewing them to make the right decision. This requires adequate experience and learning the details behind the property management services offered by companies.
Rollingwood Management’s industry experience lets us share the best questions to ask when deciding which property manager to hire.
1. Is your company insured?
When a property manager is insured, your investment can be protected if or when problems occur. You’ll get remunerations when fortuitous circumstances occur. Ask, "Do you carry Error and Omissions insurance?" This is professional liability insurance.
2. How will you handle a situation when a client pulls out of the contract?
It’s advisable to learn your options before you sign a contract. Understanding the points of the agreement is essential. You must ensure that you’re in full agreement with the stated terms. This gives you room to reconsider when the property manager’s services fail to satisfy you. You can proceed to take actionable steps to end the contract without paying for other costs.
3. How do you assign the rent prices of the unit?
When a price is lower than the optimal rate, this can count as a loss. Meanwhile, if the prices are beyond the range of the right rate, then it can result in vacancies. Setting the right rental price must be done correctly.
Check what factors the property manager utilizes in assigning the rental price . An experienced company has a set procedure that allows its client to earn maximum profits from the rental fees.
4. What’s your method of rent collection?
Engaging the services of a property manager reduces the stress of running after the renters for their monthly payments. It also helps you save time and effort. If you know how a company is able to come up with the right rent, then you can assess the efficiency and convenience of their rent collection process.
5. What are your pricing options?
Different property managers have their own methods of charging a management fee. Some companies assign a flat fee, while some base it on the percentage of the rent income. Each option has benefits and drawbacks. Learning the pricing approach of a company helps you choose which one aligns with your preferred pricing method.
6. Are there miscellaneous fees that you charge me or my tenants?
Operating a rental home carries a lot of responsibilities. There may be services that require extra effort that property managers will charge their clients. This can cover maintenance, tenant placement, or evictions.
Ensure that you read the contract thoroughly and understand the fees outlined in the agreement and ask if tenants are charged fees above the rent.
7. How do you compare the lease renewal rate from the turnovers?
Find out if a company has a low turnover rate or high lease renewal rate. A well run company will track and know their lease renewal rate. This is the best indicator that shows a property manager has the professional skills to deliver outstanding services to the renters.
8. What’s the number of rental vacancies you have? What’s the time frame of the vacancy? What’s the average period that tenants stay?
The record of vacancies must be set low. If you notice that the vacancies are less than two weeks, then the property manager is likely to compromise with a lower rent price. This equates to lower investment returns for you. Of course, some of this is based on the strength or weakness of the market.
If the vacancies extend to more than a month, then the assigned rent fee may be substantially high. This could also translate as ineffective marketing or a less than stellar property condition leading to prospective renters avoiding your unit.
9. Will I be charged if no rent fee is collected for the month? If my property remains vacant, will I need to pay a management fee?
It’s best to stay away from companies that continue to charge you even if they fail in their obligation to collect the monthly rental fee. Look for property managers that will waive the charges when rent fees aren’t collected. It’s important for a company to be accountable for its duty and only receive payment based on results.
10. What’s your marketing strategy when faced with a vacant unit?
With the myriad of marketing methods to choose from, a skilled property manager can reach a large number of prospective renters. Seek to hire property managers that have competent marketing skills.
11. How carefully do you screen potential renters?
The mark of a successful rental business is having top-quality tenants. This means that the tenant screening process must be thorough. It’s crucial to evaluate a company based on how it assesses prospective renters.
You need to find out their tenant selection criteria and how detailed they conduct the background checks. This is one of the most important procedures to focus on, ask for a copy to review.
12. What do you know about the Federal Fair Housing Laws?
If a property manager isn’t aware of FHA then you may be at risk for complaints regarding discrimination. The company that you choose must be aware of these laws to protect your interests.
13. How long do evictions take?
Evictions can be procedural, and a property manager must be aware of the many processes. It’s best to pick a company that is experianced and can conduct a speedy and professional handling the situation of evictions. This goes back to solid applicant qualification criteria. Well qualified tenants are more motivated to do the right thing, like paying the rent and taking care of the property,
14. What percentage of your tenants move out before the lease term ends?
When there are low cases of evictions, then it can mean that a property manager is effective. If the evictions are frequent or tenants are moving out a lot, then the company may not have done a proper tenant screening.
15. What’s your process for providing property updates?
Monitoring the performance of your rental home is important, so a property manager must have a good and efficient system in place when it comes to keeping their clients updated.
You must be able to access vital information about your property investment.
These are some of the crucial questions you need a property manager to provide an answer to prior to hiring them. Check your needs as a landlord and pick a company that can address them effectively. This ensures that your real estate investment will be attended to properly.
When you partner with Rollingwood Management Inc , you can guarantee you’re working with the best in the business. We have an expert team to help you with all aspects of property management. Get in touch with us today!