Congratulations! You are determined to pull the trigger – and hire a property management company! That is a wise decision. Property management is a complex and time-consuming process. And having a professional property manager can render significant value in the long run.
However, it is important to understand that not all property management companies are made equal. Their level of experience may vary widely, and so are their rates. Some may adopt modern technology for effective property management, while others may not give away with their decade-old process.
To ensure you make a wise choice in choosing the property management company you need, here are 10 vital questions you must ask.
- Is your property management team insured and licensed?
It is crucial that your potential property management company has minimum liability insurance. At the same time, you would not want to have an unlicensed property manager as it can lead to major legal issues later.
- How many years of experience you have in property management? What type of properties do you manage?
This is an important question to ask because the more experienced the company is, the better they can serve you with expert property management services. Additionally, an experienced property manager has better knowledge of the market trends, legal conditions, and other aspects. This will help them provide expert service in every matter related to property management.
It is also crucial to know what type of properties they can manage. For effective Glendale property management, the property manager should have expertise with most types of properties, including single-family, duplexes, triplexes, and others.
- What property management services you offer?
Knowing what your potential property manager has to offer is vital to understand how they can meet your needs. Make sure they provide the following property management services:
- On-going communication to help maintain the sound tenant-landlord relationship
- Effective property advertising and marketing
- Tenant background screening and selection
- Full-service leasing
- Rent collection in a timely manner
- Regular property inspection and maintenance
- Compliant evictions
- Accurate and comprehensive accounting
- How many property managers you have? And how many properties do they manage?
This question will give you a fair idea of how big and credible the company is. Based on their employee/property ratio, understand what type of service you can expect from them. If one person manages 100 properties, the quality of service will be compromised. Ideally, one employee per 50 properties or even less than that is good.
- How do you determine rental rates?
Any good property management company should have the knowledge to perform a thorough market analysis to set rental rates based on a number of factors like the local market, amenities you offer, the unit size, any additions made to the property, etc.
- What strategies do you take to fill vacant properties fast, without compromising with tenant quality?
This will provide valuable insight into the leasing strategies the company uses when they need to fill vacant units quickly.
- What are your property management fees?
The average property management fee is 10% of the monthly rent. If anything is less or more than this, ask why. Ready to interview your potential property management company? Hopefully, getting acceptable answers to these questions will help you make an informed decision.