[7 Questions] to Ask a Property Manager Before Hiring Them

Embarking on a journey of property management, whether as a homeowner with rental properties or an investor overseeing a diverse portfolio, necessitates a strategic partnership with the right property manager company. A competent property management company not only eases the burden of day-to-day operations but also plays a pivotal role in tenant relations and property maintenance. So what things should you consider when hiring a property manager? To guide you in making this critical decision, here are 7 essential questions to pose to a potential property manager.

1. What is your experience in property management? Understanding the depth of a property management company’s expertise is paramount. Inquire about their experience, the types of properties they have managed, and the duration of their tenure in the field. Seek out someone with a proven track record and a profound understanding of the nuances of local real estate markets. Using a NARPM® member bolsters their access to educational opportunities, and connection to the quickly changing landscape of property management laws.

2. How do you determine rental rates? Striking the right balance in setting rental rates is key for the overall profitability of your property. A proficient property management company should demonstrate the ability to assess the local market, evaluate property features, and formulate a strategy for optimizing rental income while remaining competitive.

3. What services do you offer, and how much does it cost to hire a property manager? Define the scope of services offered by the property manager. This encompasses everything from tenant screening and lease enforcement to property maintenance and financial reporting. Additionally, gain clarity on their fee structure, including any potential hidden costs. A transparent understanding of costs upfront aids in making an informed decision based on your budget and specific service requirements.

4. How do you handle tenant screening and placement? Reliable property management necessitates a robust tenant screening process to ensure the selection of responsible and reliable tenants. Inquire about their criteria for tenant selection, the depth of background checks, and the thoroughness of credit evaluations. A proactive approach to tenant placement is essential to forestall potential issues in the future.

5. How do you handle property maintenance and repairs? Maintenance and repairs are inevitable facets of property management. Probe into the property manager's approach to handling these issues. Ask about their network of reliable contractors, emergency response protocols, and how they keep you informed about ongoing maintenance issues. A well-maintained property is pivotal for tenant satisfaction and long-term value.

6. What is your communication style and frequency? Clear and consistent communication forms the bedrock of a successful landlord-property manager relationship. Discuss the property manager's communication style, including the frequency of updates on property performance, financial reports, and the resolution of any emerging issues. A manager with transparent and proactive communication is more likely to address concerns promptly and keep you well-informed.

7. Can you provide references or testimonials? Seek references from current or previous clients to gain valuable insights into the property manager's performance. A reputable and experienced property manager should readily provide testimonials or facilitate direct communication with satisfied clients who can vouch for their professionalism, reliability, and effectiveness in managing properties.

Selecting the right property management company is an essential decision that significantly influences the success of your investment. By posing these seven questions, you gain a comprehensive understanding of a property managerment company’s experience, services, and approach to various aspects of property management. Armed with this knowledge, you can make an informed decision and choose a property manager who aligns seamlessly with your goals and expectations.