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Do you know the things to ask when hiring a property manager?
Property managers are supposed to provide you with a range of services that protect your property investment and help you generate a healthy stream of income.
After all, why else would you invest in real estate?
It’s worth pointing out, however, that not all property managers are created equal. Some are great; others, not so good. Here are five questions you’ll want to ask when hiring a property manager.
What types of properties do you manage? Are they similar to what your property is (i.e., residential or multi-family)?
The first question is to find out what kind of properties that the manager is used to managing. While you might think that one type of property is interchangeable with another, that’s not the case at all. The type of property you buy can have significant ramifications on the particular agent you hire to take care of the admin. Ideally, you want a property manager whose focus aligns with the property you own.
Related: Need Help With Your Rental Business Finances? Hire A Bookkeeper!
What are your fees and what’s included/extra?
Property management is a competitive market. Every management company in the industry wants to convince you that they offer the most affordable and best value prices. Choosing the lowest property manager fees, however, isn’t necessarily the best option, even if your goal is to save money.
The main issue is the fact that many property managers only offer a skeleton service for the fee they charge. They might not, for instance, do background checking on prospective tenants unless you pay them an additional cost.
What are your average days on the market before you typically find a new tenant?
As a property owner, you only make money while tenants occupy your real estate. Tenants, however, periodically move out. It’s vital, therefore, that your property manager finds new tenants fast, preventing you from losing money. The number of days properties are on the market between tenancies provides you with valuable information about the efficiency of a particular manager.
What’s your eviction rate? (Are they qualifying tenants properly?)
Interpreting a particular agency’s eviction rate is a challenge. A high proportion of eviction, for instance, could be indicative of a problem with qualifying tenants for specific properties. Equally, it could be an indication that the property manager is willing to take action if a tenant can’t pay their rent. In general, however, a high eviction rate is a problem. It suggests that a property manager isn’t filling vacancies with people who can pay.
What do I need to do to get my property rent-ready?
The answer to this question can tell you how seriously your property manager takes preparing your real estate for the market. Ideally, they should give you a comprehensive list of actions you need to consider before your property is ready for the rental market. Typical tasks include things like sprucing up the yard, re-keying the locks, cleaning the carpets, and changing the air filters. Your property manager will inform you of all the high-value-added preparations you can make to boost the rental value of the accommodation.
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