As a landlord, you know that protecting your rental properties means protecting your income. What’s why you need to put a massive amount of time and effort into finding the right property manager to help you manage and maintain your properties. Today, that’s what this BC Team blog is all about: questions to ask a property manager before you hire them.
Q1: Are You Licensed For Property Management?
In some states, people are able to get an official state license that proves they are skilled and trustworthy enough to manage rental properties. Arizona is one of the states that does require a license. This should be the first thing you ask about, if you can’t find proof of their licensing online.
Even if your state does not require a real estate or property management license, it’s better to choose someone who has the right credentials. You can also check if your property manager candidate has certifications from organizations like the National Property Management Association (NPMA) and National Association of Residential Property Managers (NARPM). With these qualifications, you can be confident about their skills and abilities before you hire them.
Q2: How Many Rental Properties Do You Currently Manage?
When asking this, remember that more does not always mean better. The more properties they manage, the less time they have to focus on yours. You could run into priority issues, where they have to put another home and tenant over your own. To avoid this, figure out how many properties they manage and how they manage their time with each one.
Additionally, ask where their properties are too. You’ll want to be close by to their other properties to ensure fast results whenever a problem does arise.
Q3: What Property Management Services Do You Offer?
Not all property management companies offer the same services. This question can disqualify people immediately if you know what you want them to manage and what they don’t. For example, you may want a property manager who handles everything except tenant qualification and rent, while some property managers want to control everything, right down to rent prices.
Set your expectations early to save you time and effort.
If you are looking for a full-service property management team, check us out. At The BC Team, we do all of the following and more:
Inspection of property with recommendations to maximize your rental rate
Move-in and move-out inspections
Coordinate repairs, cleaning, request proposals, etc.
Collect Rent, Pay Bills, Collect Rental Tax
Market your property on several websites including Zillow, Trulia, Hotpad & Realtor.com, our Website
Eviction Management (if needed)
On Call 24/7 for Emergency Service
Q4: What Are Your Management Fees?
Every property manager has management fees — it’s how they are able to do their job. How much those fees are, however, could make or break the bank for you.
Monthly management fees depend on the services the property manager offers. Some charge a fixed fee while others charge a percentage of your monthly revenues. If they charge based on your monthly revenue, the national average charge is 7-12%. Anything over 12% is usually considered too high, unless the property manager offers unique services to back up the extra cost.
Q5: How Do You Decide on Rent Costs?
If you allow your property manager to set the monthly rent cost, then you need to know how they do it. Your income should not be based on a gut feeling of another person — they need to have a reputable process.
Your property manager should know how to conduct a market analysis that compares your property to the other comparable listings. They should be able to understand the key selling points of your property that will help to raise the rent to the maximum reasonable level. For example, does your home have a:
Two car garage
Pool
Hot tub
Den
All of these should be a factor in the market analysis and how much they charge for rent. On top of that, the rent they decide on needs to be competitive and reasonable. So charging $3,000 for a 3-bedroom home in a neighborhood that usually charges $2,000 is neither competitive nor reasonable, but charging $2,200 might be.
Q6: Could You Share Any References?
A property manager should always have at least one reference to give you. Their references don't have to be clients either. They can be real estate agents, contractors, or attorneys.
Additionally, ask them to show you sample documents as well, so you know exactly what they hand out to potential and future tenants. They are representing you, so you want to make sure their documents aren’t going to impact your reputation.
For example, have them show you their move-in and move-out checklists, lease agreements and addendums, maintenance reports, and inspection checklists. All of these should be on record for them and they should be able to provide them quickly (within one business day).
Finally, ask if you can drive by a current location they manage. While they may not provide an exact address, you will be able to see that area as well as the state of the homes. It will help you visualize what your property could look like under their care.
Always remember that a property manager is there to help you. If you are looking for one and feel like they’re not the right fit, there is no shame in moving on to the next person or the next company. You need to protect your investments — it is as simple as that.
If you’re looking for a trustworthy property manager who treats your home with respect and your tenants with care, then give us a call at The BC Team — 480-900-1991 — or visit us online. We’ll be happy to help you in whatever way we can!