Property Management companies

[DJ Slivka]

I have used my property management company for 4 years and their communication has progressively gotten worse. It is time to make a switch. Does someone have any recommendations for property management in Cleveland, Ohio?

[Davartay Miller]

@DJ Slivka While I might not have any property manager recommendations in the area – I do have somewhat of advice. The most important thing here is to see if the company is a great fit for you! Just because John Doe thinks the world of his property manager, John Doe is not stuck with the headache, if you are not careful. We try and remind potential clients it's about asking the right questions. We sometimes have to tell clients, "we might not be a great fit and that's okay." But a great Property Manager should know what is within his or her wheelhouse and how they operate within the markets they serve. So here are some questions we often tell people to ask: 

So ask your questions, get your data, and do your research.

Are you an investor?

Do you own in the exact neighborhoods you are managing?

How many investors do you work with?

Do you own all aspects of the operation? (or do they hire third party companies)

Do you offer rental or maintenance guarantees? If they answer yes, ask them why. Then ask them if they will put the guarantee on year three.

Do you defer maintenance?

How many properties do you manage?

Do you sell properties and if so, do you own the properties you sell?

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 residents, 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?

Do you mark up maintenance costs?

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 for owners?

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?

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

Again, these questions have a bit of turnkey flavor to them, but they work very well when interviewing management companies. Make sure you take good notes and remember how you feel talking to the companies.

Best of Luck!