What should I ask when interviewing Property Management Companies?

When interviewing potential Property Management (PM) companies, and picking one that will Hold The Keys to YOUR HARD EARNED $$ INVESTMENT(S), Ask them A LOT of questions:

1. Ask about their fee schedule. This should be on their website, but ask and see if the quote given is different than what's on their website.

2. Do they charge a flat fee (i.e. $50/door) plus 1/2 the first month's rent? 

3. What is their tenant screening system - what are their minimum requirements, what questions do they ask, what form(s) do they use, how much do they charge as an application fee?

4. There's no upfront way to "ASK", but FOR YOUR OWN INFO, you need to determine whether this PM participates in 'CHURNING'.  You want a PM that's interested in keeping tenants LONG TERM, and not the disreputable practice of "churning"...

Churning is a disreputable practice, and works like this:

1) PM charges amazing, low fees.
2) PM puts tenant in your unit without full vetting. (or puts high-risk tenants in your unit)
3) PM evicts non-paying tenant.  (because high-risk tenants almost always end up not paying)
4) PM profits by charging their standard fee for "signing a new tenant lease" over and over again as they continue to put high-risk tenants in your unit.  

Landlords On FIRE do NOT WANT CHURN!

We want LONG TERM TENANTS who will pay their rent month after month, year after year - including the annual "Cost of Living Increase" built into their lease (if the tenant so elects at the time of signing).

BUT... NO PM company will admit to causing churn because they place bad tenants. Instead, you should...

4. (still on 4. here...) to get info on the PM, ask for REFERRALS from current Investor's who use their PM services.  Interview those investors and ask whether they're happy with the overall PM services of the company.  Ask your fellow investor HOW-LONG their average tenants have been in their units. 

5. Does the PM charge for maintenance calls? (either charged to you OR the tenants)

6. Do they do regular checks on the property? (i.e. 'drive-bys')

7. Do they have a regular maintenance schedule? (winter ready, summer ready, etc)

8. Do they have a system in place for tenants to report maintenance issues before they become emergencies (i.e. leaky faucets)?

9. How many evictions have they done in the past 3 months?

     And last, but not leased... ;-)

10. How many "doors" to they have under Property Management?

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