What is the difference between a good night sleep and extreme stress? Well, if you own real estate the answer is professional property management! If you are fed up with taking care of your rental properties and dealing with the daily tasks involved with property management, or you simple do not have the time……then you need to hire a manager!

 

Since effective management is important to your success I have compiled a list of questions that you should ask when looking to hire a property manager!

 

 

1. How long have you been in the business of property management?

2. Do you specialize in a specific type of rental property (student rentals, multi family, commercial, etc?

3. What type of property do you own (if any): Single-family, small multifamily (1-4 units), larger multi-family (5 or more units), industrial, commercial, student rentals, etc?

4. How many total units do you presently manage?

5. Do you manage any units near my property? If so, exactly where are they so I can drive by?

6. What type of training do you have?

7. What property management related organizations do you belong to?

8. Do you have a company code of ethics/honor?

9. What do you like/dislike about property management?

10. Has your firm been sued or been in arbitration with one of your owner/clients in the last five years? If so, please describe the situation and how it was resolved.

11. If you have multiple managers; who would be specifically assigned to my property?

12. If you managed my property, what additional staff would you hire, if any? If none, how would you organize your work to accommodate my property?

13. On what schedule will your management staff visit and inspect the property?

14. Are there any up-front fees I am expected to pay at the beginning of our agreement?

15. Would you provide a written management plan at the start?

16. What fee do you charge for finding and placing a new tenant?

17. If a tenant moves out within a few months, will you waive your re-leasing fee for the next tenant?

18. What percentage of gross income do you charge for monthly management? Or is it a flat fee?

19. What is included with the monthly management fee?

20. Can you provide me at least 3-5 references?

21. What property management software do you use?

22. Does your software allow you to project an annual operating budget for your properties, and then compare the actual performance to the budget?

23. Please submit samples of the types of monthly and quarterly reports it generates;

that you would normally send to your current clients.

24. Will you provide a spread sheet for my year end taxes?

25. What do you typically do to prepare a unit for re-renting (turnover)?

26. Do you have your own repair staff? If so, what are their qualifications, and what types of work are they qualified to do?

27. If you use outside contractors for maintenance and repair, which ones do you use?

28. What is your contractor’s hourly rate?

29. Can we pay a flat fee for turnover expenses, such as cleaning, carpet cleaning, painting, and general repair instead of an hourly rate?

30. When outside contractors are used, will you charge us an

“surcharge” on their bills? If so, how much?

31. Over what amount do you typically seek permission of the owner before having repairs or work done?

32. Who will handle the landscaping and lawn maintenance for the property?

33. Do you take care of rental increases?

34. If I have a vacancy, how long do you think it will take to re-lease it at the current rent?….Market rent?

35. Would you want to offer concessions to fill a vacancy in the current market? What type, and how much will they cost?

36. What is the longest period of vacancy you’ve experienced in the last year?

37. What hours will your staff be available to show vacancies to prospective tenants?

38. What are your office hours?

39. What is your typical advertising budget for filling a vacancy in the current market?

40. Do you have an Internet site, or advertise vacancies on an Internet site? If so, do you provide pictures and other information? Please provide the Web address.

41. Please submit a sample classified advertisement you would use to promote my

property.

42. If a tenant must be evicted, will you handle it yourselves, or will you contract it out? To whom?

43. If a tenant must be evicted, What is the cost for your fee and tribunal fee’s?

44. How many evictions have you performed in the last year?

45. What do you do to recover costs and fees and unpaid rent from evicted tenants? Collection agency? Small claims court? Who pays the fees for these?

46. Do you recommend month-to-month tenancies for this property or leases?

47. What is your procedure if a tenant’s rent check is returned ?

48. Describe your tenant screening and qualification procedures.

49. What is the tenant screening/credit check charge to me?

50. For my review, please submit a copy of your tenant screening standards, application, rental agreement, and move-in/move-out checklist.

51. Please submit a copy of your standard Property Management Agreement.

52. If I find something in the Property Management Agreement objectionable or

wish to add to it, can we modify it to suit my needs?

53. How much notice do you require for terminating the property management agreement?

54.  Who should tenants contact after normal business hours?

55. If I have a problem with one of your employee’s, what procedure should I follow?

56. Will you give me either your cell phone number or home number?

57. Why should I use your management services?

 

So as you can see there is a ton of questions you need answered. Take your time; try to find a manager that you trust and can work well with. Property management will be a valuable part of your real estate team!

 

 

I hope this information serves you well. More great info coming soon!

P.S Please leave a comment below. Your feedback is important to us!

 

Sincerely,

Jeff Woods,

Woods & Mazzulla properties

www.wamproperties.com