Owning an investment company is a good idea if you are looking for a long-term investment idea. The only trouble is, finding the time or having the skill to actually manage those properties can be a challenge for some landlords. That’s where a property management company can come in. Here are some questions you should ask as part of the interview process when you hire a property manager.
What kind of related experience do you have? Ask them how long they managed their previous properties, the nature of those properties (how many tenants, etc.) to give you a general overview of their experience in this area.
Do you currently manage any properties? How many? Although experience is a good thing, you will want to be sure that your prospective property managers will actually have the time to dedicate to managing your property.
How often do you inspect the units you manage? This is important. You will want to be reassured that there will be a thorough assessment to potential damage to the occupied units that had been caused by tenants. Inspecting vacant units is important, too, so that the risk of things like fire can be avoided. It’s also important to find out what the manager does with the information that results from those inspections. Most property management companies have existing policies regarding how to collect payment for damages to units caused by tenants. After all, it’s fairly useless for you to receive a report that there has been a certain amount of damage to one or more units if the manager doesn’t have an action plan in place for having the damages repaired and the repairs paid for.
How do you manage preventative maintenance? A natural amount of decline is to be expected on all properties, but a good managerial company will be proactive in the maintenance area. They should be willing to keep records for all of the preventative measure they take.
What do you do daily to keep the property maintained? This is important. You need to know what the company will be doing daily to keep your property clean and up to standards.
How will you manage after-hours emergencies? Every company’s answer will be different, but they should always be willing to give tenants an after-house number to call in the event of something like a water leak or fire.
Finally, find out how transparent the company is willing to be. They should be willing to let you review their accounts payable, delinquency reports, etc. As the property owner, you have a right to outline how often you wish to see these documents. Be wary of a company who hesitates to be open about this.
There you have it: Some questions that you can ask a potential property management company to find out which one is the best fit for you.