Looking for a property manager? Excellent choice. The time, aggravation and money you will save far exceeds their fees – especially if you are an overseas investor. But how to choose a good property manager? This is a very important decision – here are a few tips to make the right one:
1. Do the research
Look at the website of your prospective property managers and consider the following key pieces of information:
- List of services they offer (refinancing assistance, tenant screening, rent collection and so forth)
- Management fees and scheduling
- Property owner and tenant portal
- Testimonials
- Reviews
- Query response timeliness
A good property management company will invest in a good website to draw in property owners, just as you would invest in unit renovation to draw in tenants.
2. As for referrals
Ask around the local real estate investors world if anyone has ever heard of this company. Word of mouth is your most powerful tool towards finding a good management company. If they are a serious company, people will have heard of them. And if they aren’t… well, people will have heard of them too.
3. Check out their current projects
If you are investing in your own home town then you should scope out the properties they are currently managing – and ask to speak with their tenants.
4. Find out how they handle advertising and vacancies.
Attracting and retaining tenants is an important, perhaps the most important, part of being a property manager. So when you talk to the management company representatives demand detailed answers about their advertising and occupancy policies – and follow up on their responses to see if reality fits the description.
5. Contact and interview more than one company
It may be tempting to simply select the first company which leaves you feeling satisfied, but the more you interview the more likely you are to find one which truly suits you – and the better your perspective and understanding of the situation will be.
Some critical questions you should raise are:
- What are the fees? Are they based on rent collected, rent due, or a flat rate per annum?
- Do they have special fees for filling vacancies?
- What is their management philosophy?
- What is their procedure for returning security deposits – or transferring them to you in case of a late rent?
- How, and how often, do they perform property inspections?
- What are there eviction procedures?
- How many points of contact will you have with the organization?
- How long have they been managing properties?
- How many units are they managing?
- What are their screening procedures for tenants?
- Do they have an online portal for owners – and for tenants?
- What do their monthly and annual statements include?
- What are their procedures for after-hours emergencies (e.g.; burst pipe).
6. Be ready to test the candidates with specific questions.
Any management company representative has a pre-prepared spiel with which he will be comfortable. But an experienced and skilled representative can handle a curveball which doesn’t fit his specific pitch. So be prepared to challenge them on specific points and see how they respond.
