23 Questions to Ask Your Property Manager
Hiring a property manager is hard, especially for new investors. We met with 2 premiere property managers, who manage over 6,000 properties between them. Here is a list of questions they came up with.
Here is a quick cheat sheet of questions:
- How many properties do you manage?
- How long have you been in the business?
- I’m looking in this particular neighborhood, what properties do you manage there?
- What exactly are your revenue sources?
A. For instance, do you flip on your own? Manage your own rentals?
Why did you get into property management?
A. Did they get into it in 2008 after the downturn and now they are just floating along?
- What is your support number? Can I call it?
A. Then do call it
- What length of lease agreement do you start with?
A.2 years is what the best are using and this SAVES you money
- How do you find tenets?
A.Agents? Internal staff?
- How do you inspect properties?
A.Be concerned if they inspect every property because its not a scalable task.
- How do you train your staff to get feedback after they fulfill a work order?
- Tell me about your work orders and how you close them out?
- Do they train the plumber on what to look for when he fixes the toilet? Has the unit been painted? Has the flooring been ruined?
- What is your average length of stay for a renter?
- Who do I call if I don’t get paid? What if I have a question in general?
- What is your approval policy?
- What are you non-negotiable and why?
A. For instance, past evictions, felonies, poor credit..
- What is your minimum rent to income?
A. Recommend 3 times income to rent for applicants?
- How long on average does it take to fill a vacancy?
A. 60 days is doing well
- What is your vacancy rate?
- How many full units do you have now?
- How many units are empty?
- Do you go to court on my behalf?
- What percentage of repairs are made by tenants?
A.For instance, did the renter clog the toilet?
Bonus Main ideas:
You will be spending some time over a number of years with your property manager, do you like them? You don’t need to do business with someone you don’t like.