Hiring a property manager is not a must, but for the right property and the right landlord, it can do wonders. The job of a property manager is not to be taken for granted and a slight mistake can do a lot of harm. There are certain traits that a property manager should ideally have and certain responsibilities that they should handle well. In this blog, we will discuss eight property management questions that need to be asked before you hire a property manager.
Questions to Ask When Hiring a Property Manager
1. What are your certifications?
Each state requires specific licensing that you’ll need to meet before opening your business. They also require that people engaging in property management activities have a real estate broker’s license. This is confusing to some because many state real estate statutes don’t even mention the words “property management.” However, they do describe activities that are typically undertaken by property managers as the types of activities requiring a real estate broker license. So, if you are interested in hiring a property manager for your rental unit, you can check they have the relevant licensing for your state.
2. How many rentals have you managed in your career?
This is pretty much the most basic background check you need to run through amongst all the other property management questions. Experience matters in almost every field and domain, but when it comes to real estate management, it’s not child’s play. If the candidate you are considering to hire doesn’t have much experience, they may not foresee issues that a seasoned vet would be wary of. On the other hand, hiring an experienced property manager can sort many of your problems and relieve you of property management stress!
3. What is your rent calculation criteria? How do you determine fees?
This is the most important question to be asked when hiring a property manager once you have established that the candidate has the basic and relevant experience required for this type of job. Finding the value of a piece of real estate can be tricky. It includes a thorough market analysis of the location, property type, and other property listings nearby among other things. A property manager should also be able to identify the competitive advantages of your property over the other similar properties nearby.
4. What is the procedure of tenants’ identification and selection?
Here is one of the most important property management questions you need to ask your candidate. Tenant management is a skill that should be a must when hiring a property manager. Knowing the procedures and processes a property manager usually adopts when finding new tenants is crucial. Some of these processes should include a basic background check of the tenant including their employment, criminal history, and credit check. If a tenant is sketchy on these metrics but looks good, how does the property manager deal with this? Do they go through with this tenant or trust the processes their firm has been using in the past? Knowing answers to these questions could tell you a lot about the potential property manager.
5. What are the management rules on contract? What is the duration and what if I want to end it for some reason?
Again, going into business with anyone has much to do with the amount of trust you put in the other party. Contracts are necessary and legally binding, but at the end of the day, if you don’t come to terms with the contract or some of its content, there’s no reason to force a relationship. Each state has its own rules and regulations about property management contracts, and knowing them before signing off with a manager can only be helpful later on.
6. How does your company run affairs? What roles do people have?
Just having knowledge about the property manager is not enough in determining your decision. The company that they work for has a great deal to do with how they will handle your property in the future. Basic questions about the company’s background and day-to-day processes may tell a lot about how your candidate will act in your interest through the course of the contract.
7. How do you handle damage and repairs?
This is a very important property management question as it requires skill and experience to answer. Finding the right balance between minimizing costs and maximizing value is not an easy thing to do. It is something your property manager should be able to handle as it is one of the fundamentals reasons why you are hiring them in the first place. Your tenants will inevitably leave some damage or need normal repairs. You want a manager who will coordinate these maintenance requests without unfairly charging you.
8. Can I get solid references?
Last but not least, you should never take the management firm’s words at face value. The property manager should provide you with credible references. Furthermore, you should check sites like Google for reviews of this business. See what tenants and owners think of their service.
Are You Still Looking for A Property Manager?
For the easiest way to find and compare property managers, go to www.theburbz.com.
You can find certified property managers in your area and see reviews from other real estate investors. If have a rental in need of management, you can list your property for free and receive proposals from property management firms. Each offer is laid out in an easy to read format, so you can quickly see which company has the best offer.