Ten Questions to Ask a Prospective Property Manager
Imagine you are hunting for a new management team. You spend hours researching, calling and emailing multiple companies. But how do you tell which one is THE ONE? It’s likely that, while discussing each company with their representative, they tell you all of the wonderful things that make them different. While it is important information, allowing the rep. to lead the conversation entirely can make it difficult to tell how one company compares to the rest.
Not all management companies are made the same!
How to Compare Apples to Apples
In order to ensure you select the right company to help you meet your investment goals, you need to make sure you are comparing the companies accurately. Say you narrow the search down to two companies. They both seem to offer the same set of services but one is willing to go as low as 6%! That is obviously the one right? But then you receive the contract and, to your surprise, there is a maintenance coordination fee of 10%.
Did the other company, who was going to charge 2% or 3% more on the management fee charge that? You might not have thought to ask…
Co-Owner and COO of Frontline Property Management, Jay Hartley, has been there as an investor himself. After experiencing the same, frustrating situation, he wrote an article hoping to help those struggling with a similar situation. His article, “Ten Questions to Ask a Prospective Property Manager”, was featured by The Real Estate Guys Radio Show in 2013 and has helped many investors determine which is the right company for them.
"Ten Questions to Ask a Prospective Property Manager"
We’re all in business to be successful and just like any endeavor, when interviewing a prospective property manager, you need to go in with the right mindset. It’s essential to think of the position to be filled as a partnership in a new venture. Your property management partner will be your “boots on the ground”. It’s important your new “partner” understands your mission, vision and values so you’re working together and not in opposition. You need someone you can count on to manage your investment by screening tenants, arranging leases, collecting rents, handling maintenance and repair issues, performing evictions, and executing cost effective turnover. It’s a big and very important task! Quality property management is often the difference between a profitable, stress free ownership and an expensive and distressing nightmare. Picking the right property manager “partner” is one of the most important tasks for any real estate investor.
To help you maximize the probability of getting a good property manager, here are ten critical questions you should expect any prospective property manager to answer with clarity and confidence.