10 Questions to Ask your property manager candidates

Tags: Property Management, Real Estate Investing

As a property owner, you have a lot on your plate. In addition to keeping up with repairs and maintaining the grounds, you must find tenants and collect rent. Managing a rental property is simply too much of a hassle for many people. That's where property managers come in. A property manager can handle all the day-to-day tasks associated with running a rental property, giving you more time to focus on other things.

Of course, not all property managers are created equal. When looking for a property manager, it's important to ask the right questions to ensure that you find someone who is a good fit for your needs. Here are the top questions to ask any potential property manager candidates:

What services do you offer?

When looking for a property manager, knowing what services they offer is essential. Some property managers may only provide basic services, such as maintaining the property and collecting rent. Others may offer a more comprehensive package of services, including marketing the property, screening tenants, and handling repairs and maintenance. Knowing what services are offered by each candidate will help you narrow down your choices and choose the best property manager for your needs.

How much experience do you have?

It's always a good idea to ask about a potential property manager's experience. How long have they been in business? Do they have experience managing properties like yours? If so, what types of properties do they typically manage? Asking these questions will give you a better sense of whether or not they're a good fit for your needs. The better experience a property manager has, the more benefit you get. You should typically hire a property manager with more than 4 to 5 years of experience. 

How many properties do you manage? 

As a property owner, it is essential to find a property manager that is experienced and qualified to take on the responsibility of managing your property. When interviewing potential candidates, ask them how many properties they currently manage. This will give you an idea of their workload and whether or not they will be able to give your property the attention it deserves. Typically a property manager can effectively manage about 150 to 200 properties easily. If the number exceeds this limit, you may not get quality work and attention. 

What is your policy on rent collection?

If you're looking for a property manager to handle rent collection, it's important to ask about their policies and procedures. Do they have a set time each month when rent is due? How do they handle late payments? What is their policy on bounced checks? Asking these questions upfront will help ensure you're on the same page regarding the rent collection. Also, you need to ask how the property manager determines the rental amount. An ideal property manager will look at the tides of the market before determining a rental amount that will benefit you. 

What do your property maintenance services include?

When it comes to maintenance and repairs, it's essential to know your property manager's policies and procedures. For instance, how do they handle emergency repairs? What is their turnaround time for non-emergency repairs? Is there any type of repairs that they don't handle? Knowing the answers to these questions will help you avoid surprises down the road. You need a property manager who is quick in managing any type of repair. Without any reliable maintenance, the risk of tenants leaving increases. 

How do you obtain high-quality tenants?

One of the most important questions you can ask a potential property manager is how they obtain high-quality tenants. A good property manager will have a robust screening process, including running background checks and verifying employment and rental history. Owners rely on property managers to find high-quality tenants, so you need to find the right property manager to get the right tenant.  

Lease agreements

Before signing a lease agreement, it is essential to ask your potential property manager some key questions. For example, you will want to know if you have any input into the lease agreement. 

Can you provide any references?

Past performance will determine future ones, so you need to ask for references. Talk to some past clients and get a feel for their operations. You can also look for online reviews.  Make sure you're comfortable with their level of communication and that they can take care of your property the way you expect. Through good references, you can be confident you're hiring the best property manager for your needs. Hiring a property manager without references involves risk, so it is better to ask for references. 

What is your average lease term?

A long-term tenant guarantees a stable income and saves you from the hassles of finding a new tenant. This will give you an idea of how good they are at filling units. A high turnover rate could indicate that they are not doing a good job of screening tenants or maintaining the property. An occupancy length is an essential number for a property manager to track. A high occupancy rate is a good sign that your tenants are happy with their living situation and are unlikely to move out soon. Asking about a candidate's average occupancy rate is a great way to gain insight into their experience and expertise.

What percentage of rent do you collect every month?

Out of all the questions, one crucial one is the percentage of rent a property manager collects every month. Ideally, this should be 99%.

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