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General Landlording & Rental Properties

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Seth Williams
Pro Member
  • Specialist
  • Grand Rapids, MI
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579
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Finding The Right Property Management Company

Seth Williams
Pro Member
  • Specialist
  • Grand Rapids, MI
Posted Feb 16 2013, 21:24

Finding the right property manager is a big decision that will have a HUGE impact on the success (or lack thereof) of your rental business.

In my conversations and experience with a number of property managers, I've found that some of them are EXPERTS who are very good at what they do, while others are total amateurs... the kinds of people you should be afraid to do business with.

So how do you find the right property manager?

When I first got into rental properties, one of my colleagues (her name is Renee) shared a system with me that she developed for finding and screening property management companies. It boils down to a series of informative questions that reveal how qualified a management company really is, and how effective they are likely to be at managing your particular property.

I used these exact questions to find my current property manager, and they worked like a charm. I was able to screen them and thoroughly understand who I was dealing with, and I couldn't be happier with the result.

If you're looking for a property manager and you don't know where to start, I'd suggest contacting a few different property managers and asking them the following questions...

General Background:
• What type of properties do you typically manage? (single family homes, apartments, commercial, etc.)
• How many units does your company currently manage?
• How long have you been in the property management business?
• How many rental properties do you own personally?

Regarding the property you intend to purchase:
• What areas of town are good rental markets that seem to have a low vacancy rate?
• If you were to invest in a property right now, what areas/neighborhoods would you focus on and what type of properties would you go for? Why?
• What is the average vacancy rate in this area?
• What is unique or special about this area? Are things getting better or worse? Does this strike you as a good investment property?

Management Related:
• How many people are on your staff? Describe how your company’s work is divided and/or the number of units each person manages.
• Describe your tenant screening process.
• Describe your eviction process from the first day rent is late.
• What is defined as the tenant’s responsibilities in the lease agreement? (cleaning, furnace filters, yard care, etc.)
• What limit is set for your property owners to approve expenditures?
• Are repairs/maintenance paid at cost, or at cost plus? (marked up)
• Describe the ways you are able to improve an owner’s profit. (increase rent without losing tenants, share late fees, etc.)
• Describe your fee structure and what is included or excluded. (advertising, leasing fees, etc.)
• Can I see a copy of your paperwork/reports/lease agreements?
• Request 3 references.

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