As a property manager, the most common question I get when a prospective client reaches out is “What is your monthly percentage or rate?” As an investor myself, I understand concerns about how the cost of services can affect your bottom line, but this is still not the most important thing one should be asking when hiring a property manager. You’ll want to ask alot of questions to be sure your valuable investment is in good hands. Judging on price alone can cost you in the long-run. Below are the 8 questions you SHOULD be asking when hiring a PM.
- Are you a licensed real estate agent? If not, is a license required in the state you are managing in?
- In many states, such as Pennsylvania, a license is required to manage property for others for a fee. Yet, some people actually don’t realize this. Some managers may be investors themselves and manage for others on the side. While as investors, they may know their stuff, if their business is suddenly shut down because they are managing without a license, it could leave you suddenly without a manager at a very inconvenient time. You don’t want to be planning the vacation of a lifetime and suddenly have no one managing your property while you are away.
- What property management software do you use?
- A professional manager should have dedicated software. There are many out there such as Rentvine, Appfolio, Propertyware, and others. They all have their slightly different features and reports, but a professional manager should be able to answer this quickly and not be using a spreadsheet, quickbooks, or other non-dedicated software to track things.
- How are after-hours calls handled?
- A good manager should have a plan for what to do if your sewer line backs up on Memorial Day weekend or the heat goes out on a Saturday morning in January. Some managers use a call center, similar to doctor’s offices, others may have an on call tech or virtual assist available 24/7. Any of these can be fine, but just make sure they have a process in place.
- Is property management your main business? Does your office operate any other businesses?
- Property management is a completely different set of processes than helping consumers buy and sell homes. While some offices can do both very successfully, make sure there are staff and processes dedicated to property management and it is not just their side gig.
- Where are you located? Who is actually managing my property and where are they located? How long have you been operating in my area?
- Property management companies come in many formats. There are small local companies, larger local or regional companies with multiple offices, national franchises with small locally owned offices, and national companies with just a few boots on the ground in each city. Some companies may be able to offer services cheaper because of the way they are set up, but consider how well they know the area, local law, the contractors they may need to send out, how easily they can get to the property etc.
- Can I get in touch with the owner of the management company if there is a problem? If not, how can I get in touch with a supervisor or someone who can help?
- These days it seems no matter what kind of organization you are doing business with, from banks to phone companies, issues can arise and it can be hard to get in touch with someone who can sort them out for you. While many management companies have great staff members performing wonderfully at what can be a very demanding job, you should know how to get help if a problem should arise.
- Are you or your company a member of any professional organizations?
- Property managers can join their local Realtor Association and have a Realtor Designation. NARPM (National Association of Residential Property Managers) is another great organization that great property managers often join. These organizations provide continuing education and keep managers up to date on changes to the law and recent trends.
- Finally – check reviews on Google, Yelp, and Facebook.
- Property managers can often get hit with bad reviews from tenants who may be unhappy with a manager for things like enforcing the lease – so don’t just look at the avg stars. Scroll down and read through multiple reviews. Look for patterns. Are people saying the service is good? Good communication? Or are there some negative patterns that might be of concern?
