The purpose of hiring a property manager is to free up your time to do other, more important things with your time, while at the same time ensuring your peace of mind and making sure the profits keep rolling in and making their way to your bank account.

It’s important to remember though, that sometimes it may not be a question of the “right’” property manager, but a question of which management company is “best” for you and your individual situation. Here are four more key questions to ask when interviewing a potential property manager.

 

Your new property manager will be the one to determine what your new tenant will pay every month in rent. A solid knowledge of the current market trends in the area is essential to ensuring that you are maximizing the return on your investment.

Don’t hesitate to ask how the rental rate is decided. What factors play into the equation? Many property owners already have an idea how much they would like to see charged for their unit. If you have a dollar figure in mind, your expectations are best communicated at this time. If the property manager does not agree with you, ask for specific reasons why.

 A good working relationship is based on open communication. Before you are legally committed to a Property Management Agreement, ask the necessary questions to give you peace of mind. Only after you have clarified that you and the property manager are on the same page, should you move forward with signing an agreement.

Many tenants have a specific way they prefer to pay rent, because for them, it is the easiest method. Find out how this property management company collects rent from those individuals currently leasing from them. 

In today’s electronic age, having the option to pay rent online is and obvious option. Most property managers will also accept check or money order. And an even better option is if the property management company has the capabilities to offer ACH withdrawal for automatic payment every month. Cash can potentially be hard to keep record of, so it is not encouraged to allow cash payments. 

The reason you are marketing your property is to make money. Before entering into any agreement, it is important to understand what costs you should anticipate incurring. These costs could range from a variety of different items. 

The first item is maintenance repairs. How will your charges be calculated for any repairs that are needed to be done in your unit? Do they outsource their maintenance or do they have their own maintenance on staff? What is the hourly rate for the maintenance department? Do they up-charge costs for parts?

The second item to consider is the fees to manage the property. What percentage rate will the management company retain for managing your rental? 

While you are inquiring, don’t forget to ask if they have any surcharges or fees you should be aware of. Also, don’t hesitate to ask around to see if their fees and policies are in line with other management companies in the area.

  

Finding out how many properties this property management company currently oversees is important so you can have a better understanding of what kind of company you are in business with. Minimally it will give you a clearer picture of their span of clients. 

The answer to this question can be interpreted two ways. Too many properties may mean they don’t have time to pay attention to the details of your property or too few clients may mean they aren’t experienced. 

But don’t jump to conclusions too quickly. If they are an established company that has a qualified and efficient team and process, managing a large amount of properties may not be an issue at all! And on the flip side, a manager who has only a few properties may just be starting out. The important part is to ask the question and then see how comfortable you are with their answer and processes. 

While the process of interviewing property managers may feel overwhelming, the answers to these key questions will give you a better understanding of the way that company works. You will also find out how well you and that property manager communicate together. Creating an open line of communication and sharing your questions and concerns with a potential property manager will hopefully begin building the foundation of a productive and profitable working relationship for years to come.