What to ask potential property managers

Question

Good morning, everyone!

My husband and I are trying to buy our first buy and hold property and are both working full time, so are going to be interviewing property managers to help us.  What questions should we be asking?  What are the top issues you have found so I know what to look for?  Any advice would be helpful.  Thanks a bunch!

Annette

Annette Wanamaker · Answer

Thanks, all!  Much appreciated. :)

Drew Sygit · Answer

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

Davartay Miller · Answer

Are you an investor?

Do you own in the exact neighborhoods you are managing in?

How many investors do you work with?

Do you own all aspects of the operation?

How many properties do you manage?

How long have you been in the business?

What is your average vacancy rate?

What percentage of expiring leases will renew their lease each month?

What percentage of signed leases fulfill their full term?

What is the average number of days a property is vacant between tenants, move-out to move-in?

What percentage of billed rent do you collect each month?

What is the cost of an average repair bill after move-out?

What are your management fees?

What percentage of collected rent goes to yearly maintenance on average?

What is your average number-of-months occupancy per property?

What is your average occupancy rate?

What programs do you have in place to keep residents happy?

What customer service programs do you have in place?

Will you call me every month with an update on my portfolio?

How many team members are dedicated solely to providing service to your clients?

What has been your biggest mistake as an investor? How do you protect your clients from making the same mistakes?

Patrick Page · Answer

Good luck with your search. Here are a few things to note and questions to ask. A good property management company will answer all of your questions and listen to your concerns. They should be able to provide you with a list of references upon request. A great way to find property managers is to search on NARPM or a google search. Make sure to read reviews and ask the property manager about any reviews that grab your attention.Some Questions to Ask:

How long have they been managing properties? How many units do they currently manage? How big is the staff and what do they do? Also they should visit the property and do a walk through with you.

What are the PM Fees? What are the additional fees that they charge? Do they hold onto a maintenance fund? They should be able to provide you with a list of services that are included with your PM fees and those that require additional costs.Are they a licensed broker and real estate agent? It's important that they are well versed in the state laws and regulations regarding property rentals and rent collections.

What is their listing process? Where do they market the rental property? What is their tenant screening process? You want someone who does a thorough screening process including background checks, credit report pulls and understands how to find a tenant that will take care of your property and pay rent on time.

Do they have a portal or a way to view your portfolio? How will you receive monthly payments? Is there someone that can answer your questions around billing and invoicing?

They should have open communication and want to help you protect one of your biggest assets; your property.

Annette Wanamaker · Answer

Super helpful; thank you, Dave!

Dave E. · Answer

@Annette Wanamaker

https://www.biggerpockets.com/blog/property-manager-questions