Property Management: Eleven Questions to Ask When Looking for a Property Manager Part 1

It’s not easy finding someone to care for and watch over your investments. It’s often more difficult knowing what questions to ask to find the right person. These eleven inquiries will help you get started. We’ve broken the questions up into bite-size morsels so you can digest the information slowly and at-will. If you’ve got a voracious appetite, plate yourself a double serving of property management know-how! 

Part 1: Questions to Ask a Prospective Property Manager 

1. Can you give me some background on your business?
While this seems obvious, it can be forgotten in the hurry to find out how much they charge and if they’ll stay on top of tenant maintenance requests. Ask them how long they’ve been a property manager or been in business. Time doesn’t necessarily equal good experience but it’s one indicator. Someone who’s been a property manager for 5 years may not have had enough time in the day to learn everything needed to effectively manage your property. How many people do they staff? Who will be the primary contact with the company? Will they provide references and client testimonials? How many properties do they already manage? These will all help you get an overall feel for how the company or individual works and if they’re a good fit for your needs.

2. How well do you know the area?
A good property manager will think like a tenant. They’ll know if your asking price on a year lease is competitive or overpriced for the location and features of your property. “Keeping up with the Jones” may be a sad way to think about many things but with rental properties, it’s a necessity. Keeping a unit rented with happy tenants will require a manager that knows about the median rental rates, what people will be looking for in a certain area and the amenities they’ll want for the price. If the property down the street is the same price with stainless steel appliances and a landscaped patio, your 10 year old appliances and plain backyard will not seem worth the price to a tenant. Asking a property manager how well they know the area will reveal if they’ll have the competitive edge to get your property rented and keep it occupied.

3. What kind of experience do you have?
Get specific. Ask about types of properties managed, sizes of communities, if they specialize in individual investors with a handful of homes or huge corporations with apartment megaplexes. Make sure that the properties they specialize in match the type of investment property you own since the priorities and how they’ll run their business will be different. It also helps to ask if they’ve had experience with Section 8 housing just to be on the safe side. Even if your property isn’t Section 8, a well rounded property manager will not be blindsided by any situation that may present itself with a prospective or current tenant.

4. What are your accreditations, qualifications, and coverage for what I need you to do for me?
Official certification with national associations signify a certain level of dedication, education and experience for property management. You wouldn’t let someone without the proper licenses manage your market investments and a property manager should be held to the same standards. Is their entire staff bonded? How much insurance do they carry? What does the insurance and bonding cover? If something goes seriously wrong with your rental property and the manager could have somehow prevented the damage incurred, their insurance coverage is going to be your saving grace.