You have made the best decision by having a property manager oversee your rental property. However, you still have one more hurdle to cross: selecting the best property manager for your property.
Several people think of themselves as expert property managers nowadays, but they must have what it takes to handle your investment smoothly. You must interact in-depth with potential property managers to choose one who aligns with your investment goals and objectives. The property manager you choose should have the necessary skills and expertise for your property.
You want a property manager who is passionate about your business, has good communication skills, is up-to-date on industry news, knows about real estate investments, and is organized.
But how do you identify that suitable property manager from many others? This article will explain the best questions to ask a property manager you are considering hiring. Their answers will guide you when making your choice.
Best Questions to Ask a Property Manager When Considering Hire Them
Below are some of the best questions to ask a property manager:
1- Do you have a property management license?
Some people take on the name of Property Manager without having the required license. For that reason, some states make it mandatory for property managers to obtain licenses and registration.
To ensure you are dealing with a professional property manager, you should ask to see their certification. You can also do a background check with the licensing body to ensure it is genuine. Doing this prevents you from dealing with quacks that can impact your investment property.
2- Are you affiliated with any professional organization?
The property manager you choose should be affiliated with the National Association of Residential Property Managers (NARP) or similar professional organizations. Verifying that they belong to a local chapter of the group is essential. That will help you avoid dealing with property managers who engage in disreputable acts during business transactions.
3- What services do you offer?
You need a property manager who will provide you with a comprehensive package. You will get marketing, tenant screening, a lease agreement, maintenance, evictions, cleaning, rent collections, accounting, tax management, bill payments, property inspection, and more. Getting a property manager who can offer all these services is best because hiring different people for each service will be expensive.
4- What kind of property do you manage?
Property managers specialize in different types of properties, such as commercial properties, single-family homes, or apartment buildings. It is advisable to choose property managers who only work with the kind of property you want them to handle because different property types have variable needs. Property managers who deal with all property types may not have an in-depth knowledge of the specific needs of certain properties.
5- How many properties do you currently have in your portfolio?
Property managers with so many properties in their portfolio may be so occupied that they have limited time to give your property all the attention it deserves. Conversely, property managers with few properties may not have the necessary experience, expertise, or network to cater to the needs of your property. For that reason, you will need to strike a balance. The property type will also help you determine an ideal number of properties the property manager should have in their portfolio.
6- What are your management fees?
Most property managers charge 10% of monthly revenue as their management fees. However, this depends on the services included in the package. Be cautious with property managers who offer management fees higher than 12 – 14% of monthly revenues. You may accept higher rates if they offer more value or provide unique services. It is essential to note that some property managers do not have a fixed monthly fee. They may provide different rates or plans.
7- What is your cancellation policy?
Before you settle on a property manager, you need to understand their contract in detail. One aspect you should look out for is the cancellation policy. Conditions for ending the contract should be specified so that the agreement does not lock you in. Ensure you can hire another property manager if they default on the contract.
The bottom line
Choosing a suitable property manager for your property is not as easy as it appears. You will need to consider the peculiarities of your property and work with the answers you have gotten from different property managers. Reach out to current clients of potential property managers where necessary to obtain their honest reviews.
