How do you know if your property manager is actually doing a good job or you should fire them?
I expect my property managers to provide me with monthly reports, including -
P and L statement
Items purchased and repairs done
Bank reconciliation, my pm has checking account for the houses
If I weren't getting that, I'd be concerned.
It is better to make sure you find a good one before you hire him/her. Use references, online checking, and interviews.
Then you need to verify if he/her gets the job done efficiently, such as how soon your properties are leased out, rents are paid, detailed P&L are sent on time. And if something happens (late rent or something else), it is taken cared of propertly.
The good situation will be as time goes by, you don't need to check very often and you have the peace of mind.
I agree with
@Zach Liu , I have learned when I was an investor looking for a property management company I had no idea what to ask and who to ask. The best way is to look them up online and see what people are saying about them.
I would ask to speak to references also.
I came up with these questions to see if they know their numbers and their company.
Questions to Ask prospective management companies
- What are your average days on market for vacant homes?
- What is your average rent amount for all properties managed?
- What is your average work order cost for the owner?
- What is your average make ready cost for the owner?
- Are all my invoices uploaded to my owner portal?
- How do you advertise your vacant units?
- Do I receive video of my pre and post make ready?
- Do you have a setup fee?
- Do you upcharge on maintenance?
- When do you make owner payments? How often?
- Are you a Certified Property Manager?
- Are you a member of NARPM?
- What is your Guarantee?
Ask for a standard lease and you will get a lot of answers too. Also there's one episode of podcast mentioned that you should ask what insurance they have so if anyone working on your property gets injured, it is not your insurance that pay the bill.
Mine suck and are barley competent. That's been my experience in dealing with the one's I've encountered. I do a better job than the one's I hire.
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