Choosing a Property Manager

An article by Paul    Comments Off on Choosing a Property Manager

Now you have an investment property the next logical step is to find someone to take over its management. Do some investigation and list questions you want to ask when interviewing potential property management agencies. Short list a couple companies that interest you.
Phone them to ask questions then, if you are still interested; make an appointment to visit in person. Visiting in person gives you an idea of how they conduct their business and you can meet up with the individuals who will represent your interests. Here are the top five questions to ask when you interview a property manager.

1. Does the Company have a Devoted Management Workforce?
You want to know whether the property management company offers a comprehensive service or if it is just a side line for an estate agent. Who and how will your property be managed. How many staff are in the office? Who will manage you and your tenants if staff leave or are sick?

2. Does the Company Owner/Director get Involved in the Business?
Most property management companies are divided in two – selling property and managing property. Usually the company director is involved on the sales side since it is the high earnings area of the business and a property manager takes care of leasing. If the company director is involved with the property management arm of the business, you may discover they take it more seriously than others.

3. How well do they know the Rental Business?
Check with the property manager how long they have personally been handling property management. Just because you are speaking to a well recognised property agency doesn’t necessarily mean their staff possess a great deal of experience. It also doesn’t mean they offer top quality customer service.
Some property managers start out working in a property office as the office person and work their way up. Some shift into property management and the rest into sales. Other property managers have specifically selected property management as their profession.

4. How long has the Property Manager worked for the Firm?
You would like a property manager that is reliable in their employment, and who will take looking after your interests seriously. There is a lot of stress involved in property management, that has a high turnover of staff. In six months time, you would like to be talking to the same person to build a business relationship that understands your needs and the property. This is a good reason to find a property manager dedicated to it as a career.

5. What Area does the Company Service?
You are right to think about companies that have expert local knowledge but, if you intend on investing in more houses in the future, how far does their expertise reach?
You do have a choice – either hire a property management company in each geographic area or find one which covers a wider area to take on all your properties.

6. How do they Conduct Property Inspections?
This is really an important one – the last thing you need is for a property manager to just hand out your keys to prospective tenants. Too much can go wrong. You want to know that the property manager will give good customer service and personally take potential tenants to inspect your property. Or, they might hold open houses at specific times. This provides them with a chance to get to know a prospective tenant better.

7. How many Properties does the Company Manage?
You want to know how many properties the property manager manages personally. Some will have 200 or more. If they do, I wonder how they are able to give you and your tenants top customer service. Others may have only up to 150 but charge more for their service. This may be a better option to get peace of mind and, ultimately, make a good return on your investment property.

8. Does the Company’s Staff Work Six Days a Week?
You want a property management company that can show your properties when it is convenient for the tenant. After all, you want tenants that can pay the rent so that means that most will be at work during normal business hours; unless it is a commercial property for rent. In the world of internet advertising, enquiries come in 24 hours a day. This comes down to their availability and ability to deal with maintenance issues as well.

9. Does the Property Manager Check New Tenant’s Credentials?
It is important to ask how the property management company checks out the credentials of short listed prospects. You need to reassure yourself they check people’s credit and rental history, and their past and present employment.
All prospective tenants must be screened carefully. Does your property manager have adequate access to information for this purpose? Do they provide you with a written report that backs up their claims when handing over short listed prospective tenants?