I wish more people would ask what to look for when choosing a property manager. Its an important topic because not all managers have the same experience, business model, etc. Having a property manager can save you from many headaches that go along with being a landlord. Be sure and budget for property management BEFORE you buy that rental property and conduct some interviews before picking a management company.
1 -What do you charge? Managers generally charge a monthly fee to watch and maintain your property. Those fees can range and are usually a percentage of the monthly rent. Ask about a minimum charge. Obviously, you should look for a company that charges less and provides more services.
2 -How often and it what ways will you communicate with the owner? Communication with a manager is of the utmost importance. If you need someone who uses email, and is responsive to both the telephone and email..tell them you need someone who can deal with you in your preferred method of communication. If they don’t get a response back to you in a timely manner, it is time to walk. Let a manager know what you expect and make sure they’re willing to be flexible for you.
3 – Termination of the agreement? In the event that your relationship does not work out, you want to know up front what exactly it will take to terminate your agreement. Is there a charge for breaking your contract? Penalties?
4 – How are repairs and maintenance handled? Does the company have their own maintenance crew, or do they contract out to a handyman? What is their hourly rate? Can they handle all kinds of repairs? What happens if they can’t do something? Do they have other contractors that they work with?
In addition, you probably want to have a maximum that the company can spend without contacting you. Generally, owners allow managers to do what they need to as long as it is for something under $250. You’ll want to be sure and confirm any expenses over that. You should also request invoices/receipts for expenses.
5 – What type of monthly statements do they send? Does the company send out monthly or quarterly statements. It’s best to receive a monthly income/expense statements.
6 -How does the company handle evictions? What are the costs to evict?
7 – How will they handle vacancies? Get their marketing plan and details on how they will handle showings. Is there a charge for filling a vacancy?
8 – Where do they advertise properties? Are for rent signs put on the property’s lawn? Do they advertise in the paper? Online? There are quite a few effective places to advertise properties for free, online. Do they use these? In addition, you want your property advertised effectively. Online marketing makes a huge difference!
It’s also a good idea to ask about the properties they manage, (more is not always better) how many managers work at the company, what specific areas they focus on, how long they have been in the business, and other questions about their experience.
This should be a good start to get you going and on the right track to finding a good property manager.