Interview Questions to Ask a Potential Property Management Company Before Hiring
If you own residential real estate, probably one of your main goals is to earn the highest possible profits with the least amount of hassle. After all, no owner or owner can be there to monitor all of their real estate at all times.
This is where a reliable property management company comes in. Of course, the most important word here is “reliable”. It is the company or the property manager that will potentially be in charge of your investments and your income. It is therefore important to have a control system in place.
Whether you have mobile homes for sale or are part of a land lease community, real estate investing is not cheap or easy to monitor. With an experienced company or manager by your side, the day-to-day management of your property will hopefully become much easier.
When you hire an employee for a job, they must pass at least one interview. The same goes for a property management company; of course the questions could be more detailed as there is so much at stake.
Confused About What To Ask Your Potential Property Managers? Let’s take a look at some of the main questions to keep in mind.
Questions to ask when hiring a property management company
Before hiring a property management company or property managers, these questions should be on your list:
Question 1: How familiar is your team with current real estate trends?
Real estate investing is a finicky game. So you want to make sure you ask your property managers what trends are in place right now. This will show you their knowledge of the market. This is important for managing and maintaining your property in the best possible way.
Your potential property manager should be able to contact and find reputable tenants to fill your property. This is an easier task than in the early 2000s, as the number of people renting property in the United States has increased in various cities.
Question 2: How do you stand out from the competition?
While it can be a bit awkward to mention competitors to any potential property manager, it’s a good way to filter out really good companies. If they are true professionals, they will respectfully mention their competition and display their knowledge of local market trends.
Asking about the competitors will also spark the conversation about how unique this potential property management company is in their pricing and services. The company representative should be able to explain what makes them different and better than others. Ideally, they should also provide referrals from clients so you can be sure to move forward.
Question 3: What is your business’s record on rental properties?
If you are interviewing a relatively new company, chances are they won’t have relevant experience in the real estate industry. Their prices may seem affordable, but it’s just not worth the risk.
The questions you ask will tell you if the business is efficient and reliable enough to make everything run smoothly. Even an expert can have a hard time maintaining real estate these days. Therefore, you should also ask to get in touch with old customers.
You can also ask why and after how long precious contracts have ended, whether there is a record of unethical practices, etc. These details are essential. So don’t feel weird to ask.
Question 4: What type of technology do you use?
Staying on top of real estate trends also means modern property managers need to stay up to date on digital tools. Almost all industries have made changes to incorporate software and other forms of technology to make their process easier and smoother.
Ideally, your potential property management company should have software solutions that make their system easy for you to use. You should also be comfortable with the setup they have, as this is what they will use to maintain your property.
The communication software used by the company is also important. This is how they will contact you. So make sure it matches your needs.
Question 5: What will be the income structure?
One of the most essential questions to ask a potential property manager is about income from your property. This usually means determining the rent of tenants. The answer to this concern lies in knowing how real estate works in your state, city, and region.
Make sure you know the details of the rental formula from the property manager. This is also the time when you give your own opinion on the rent and how it is fixed. This way, both parties will stay on the same page and can move forward without too much confusion or resentment.
Question 6: How will the collection of rents take place?
Collecting rents will generally be the responsibility of property management companies. That is why it is best to hire one who has worked with the latest solutions. With automated payments and online systems, you can be sure of fast and convenient cashout from all sides.
If your potential property manager has a great software solution in place, you should consider hiring them. With decent updated software, you can also rely on the accuracy of your transactions.
There is also the fact that some tenants may want to pay cash or make a payment by some other method. Ask the company about alternative solutions for such cases.
Question 7: Do you have a credible license for this service?
Whether you are interviewing family-owned property management companies or larger companies company structure, make sure their license is up to date. Keep in mind that different states will have their own licensing rules and regulations.
Besides just asking this question, you’ll also need to do some research on your own. See what qualifications are required for your area and ask the potential manager if they have the necessary licenses.
For security reasons, also ask for proof of license. Some states may require a more direct connection to a known real estate organization. Others may require a real estate broker’s license before becoming a real estate manager.
Question 8: Who will handle maintenance issues and how?
One of the main concerns in residential property management is that of repairs and maintenance. When a tenant experiences leaks, breakages, infestations or any other problem, the problem must be given proper and prompt attention.
A homeowner in the United States can expect to spend 1-4% of the value of their home on maintenance. Keep this in mind ahead of time so you don’t get confused by sudden repairs.
Property management companies will typically face these issues. So this is one of the questions to ask a property manager during an interview. The way they handle work orders and their experience will matter a lot.
Question 9: How will the financial responsibilities be distributed?
Financial transactions are usually a tricky business, but that’s why you need to be clear in this area. Remember to find out about the fees of the trustees or the property management company. Both parties should fully understand the financial section of their mutual agreement before moving forward.
One of the first details to settle is the percentage of rent that will go to the property manager or the management company. If you research the payment trends for these services, you can negotiate the fees in an informed way.
It also makes sense to ask if there are any hidden charges somewhere. Make sure you read the fine print before signing anything!
Question 10: What type of compensation plans does the property management company have?
Any potential property manager should be made aware of repair and maintenance issues. However, it is also very important to clarify which party will be held responsible for managing the costs associated with the repairs or damage caused. Make sure everything is covered by a written policy.
When you ask a property manager about such a policy, you are covering your own bases. No matter how careful a manager or leadership team is, property damage can still happen.
So when thinking about questions to ask rental property management companies, make sure the detailed compensation plan is at the top of the list.
Question 11: How will you deal with tenant issues like late payments or evictions?
The hardest side of property management is usually dealing with late payments from tenants or having to evict them for some reason. The property managers you end up hiring need to be responsible enough and tactful enough to deal with such issues without incurring much damage. Such tasks can be complex, especially if the tenant is part of an HOA or other influential group.
Nonetheless, you need to make sure that any manager under you should receive these payments and kick out if necessary. In both cases, they must also remain respectful and within legal limits.
If you are looking for a property manager to manage your condo, apartment complex, or any other form of real estate, there are likely many choices. Many new property management companies will be happy to have the chance to serve you in exchange for a reasonable price.
Once you know what questions to ask the property manager, the way forward will be a little clearer. There are still several steps to take. But you would be able to make the important decision to hire the company without any worries. Start looking for a reputable potential property management company now. Hope you will soon have the best for your needs.