What questions should I ask potential property managers?

4 Replies

Hi all!

I’m new to investing and hoping to get in on my first deal by the end of next year. Looking into by and holds for rent. Preferably multi family units. The market I’m in is a little pricey. I’m looking to buy outside of my local areas. I will definitely be looking for property management. Is there anything in particular I should ask when vetting potential management companies? And should I be looking to find a property manager before even finding my first deal?

Thanks in advance for the help!

How do you handle late paying tenants and what would the eviction process look like?  Standard fee, maintenance markups, release up fees, When do owners get paid, what is the best way to communicate with the PM company, will I have one main contact person, how do you screen tenants and what is the qualification process for them.

I am sure there are more.

Good luck
Originally posted by @Bryan Teitzman :

Hi all!

I’m new to investing and hoping to get in on my first deal by the end of next year. Looking into by and holds for rent. Preferably multi family units. The market I’m in is a little pricey. I’m looking to buy outside of my local areas. I will definitely be looking for property management. Is there anything in particular I should ask when vetting potential management companies? And should I be looking to find a property manager before even finding my first deal?

Thanks in advance for the help!

Hello Bryan, below are some of the questions that I think you should ask your property manager: 

    Do you mark up maintenance and repairs

    What does your screening process look like?

    Do you charge any fees if the unit is vacant?

    What are your management fees?

    What is the best way to communicate with your team and what options do I have?

    If I want to cancel my management agreement do I have to pay any fees?

    How do you determine the rent amount?

    How do you market vacant units?

    What kind of software do you use?

    General:

    How many properties do you manage? How long have you been managing properties?

    Of these properties what is your occupancy/vacancy rate?

    What methods do you use to advertise the property?

    On average how long does it take you to fill a vacancy?

    What is your tenant screening process/guidelines?

    Do you have an online portal? How often will I receive reports? Do you have a sample one I may view?

    Do you send out checks or use ACH transfer?

    Are you insured for General Commercial Liability and Errors & Omissions?

    Fees:

    What is your monthly fee?

    What is the charge for signing a new lease?

    Do you charge a lease renewal fee?

    If the property is empty, do you charge the monthly fee?

    Do you charge to file an eviction? If so, how much do you charge?

    What is the average eviction cost & time in this area?

    Do you charge to turn on utilities?

    Do you have an in-house maintenance crew or do you contract out? 

    Is work billed to me at cost or cost plus your additional fee?

    Do you require that any contractor/vendor you use be licensed/bonded/insured?

    After a tenants lease is up do you just let it switch to month to month? Or do you renew the lease? Fee for this?

    What are the typical court charges for evictions? And how long does the eviction process typically take?

    Pics & Vids:

    How often do you perform interior and exterior inspections?

    Do you take before & after pictures of repairs?

    Do you do any type of video documentation? Maybe tenant move in/move out condition etc?

    Other:

    What unit mix do you have the most demand for in your area?

    What parts of town should I stay away from?

    Do you own rental properties of your own in the area?