Owning several rental properties is both a blessing and a curse. On one hand, it’s a financially rewarding endeavor that comes with a host of tax benefits. On the other hand, managing several rental properties can be stressful. Certain things may slip through the cracks.
As much as there is value in controlling all aspects of your real estate business, seasoned investors know that outsourcing property management is key to scaling an operation. This is where professional property managers come in.
Not all property management managers, however, are equal, not just in experience, but the services they offer, too. Finding the right fit is vital to the success of your real estate business.
Are you currently looking for a property manager? Below are several questions that you should ask your candidates.
How long have you been in the business?
As a landlord, the peace of mind that comes with hiring an experienced property manager is priceless. You want someone that you can trust with your investments. While it isn’t necessarily a hard and fast rule, the more experience a property management company or manager has, the better prepared they are to handle any situation.
What types of services do you offer?
Ideally, you want to work with a property management company that can provide you with the range of services you need. Dealing with several third-party operators can end up being more confusing than managing the rentals on your own. Look for a company that can market, lease, and maintain your units as well as screen and retain long-term tenants.
How many rentals do you manage?
Asking about the number of rentals a property management company handles gives you a glimpse of the kind of service they provide. Too few may mean inexperience or unsatisfactory service, but it can also imply dedication and laser-focused attention to the rentals they manage.
Too many properties under their care can suggest that they may not be able to give your rentals the proper attention they deserve unless they have a large team.
What kinds of properties do you service?
Different types of properties call for different types of management. After all, marketing a single-detached home entails a less rigorous process than advertising an entire apartment complex. You want to make sure that the company you sign with has experience in the type of rental properties you own.
What are your management fees?
Property management companies have different payment plans. Some have monthly flat rates, while others charge based on several factors, including the rent amount and add-on services. If possible, ask for a breakdown of fees to understand what you’ll be paying for.
What is your cancellation policy?
There are times that, despite your due diligence, a company that you vetted doesn’t deliver on its promises. For this reason, don’t forget to ask about a candidate’s cancellation policy. You don’t want to be stuck paying exorbitant cancellation fees or waiting out a contract if you are left unsatisfied. To be safe, have an attorney look over the contract before signing.
How do you market properties?
The right property manager knows how to market a unit effectively. Ask about the strategies they usually employ and the marketing channels they use to find long-term tenants.
What is your rental pricing process?
Pricing a rental unit is a tricky affair. The price needs to generate profit. It can’t be too high, however, to the point that you price the rental out of the market. A good property manager knows how to strike the right balance between earning profits and keeping your rental properties competitive. They should be able to conduct market research effectively.
What is your screening process?
To guarantee a steady income stream, find the right tenants and make sure they stay for a long time. To do this, property managers screen tenants. Ask your candidates about their standard tenant screening process. See if it’s up to par with your requirements.
Asking questions is imperative to secure the best deal with the right property manager. As such, don’t hesitate to add more questions depending on your needs and goals.
Relax and let your property manager work for you
Want to learn more about property management? Sundance Property Management can give you a crash course on property management 101. Let us help you manage your rental properties in Ohio, Kentucky, South Carolina, Indiana, Georgia, North Carolina, and Tennessee. Call us 608.513.3933 or email info(at)sdpmi(dotted)com today.