Questions to Ask Before Hiring a Property Manager
When it comes to managing your investment property, who can you trust? After all, your property and your money are at stake. For apartment building owners, having a great property manager is crucial to protect your investment – and avoid some nasty headaches. Every investor will have their own specific needs from their PM, but here are a few often overlooked matters that are crucial to discuss before signing a management agreement.
How many units are they already managing? If taking on your property is going to make them exceed their comfortable limit, you may be better off with someone who isn’t spread so thin. You’ll want them to be able to handle your property’s needs in a timely and attentive manner.
What type of tenant management software are they using? Be sure that the programs they are using are efficient and can produce output reports to your satisfaction, and by a specific date each month.
Go over the fine print with all finances. Most property managers will charge for a percentage (5-10%) of rents, but be very wary of whether they are charging based on rents collected and not just rents due. Why should you pay them for rents that they haven’t collected?
One very important thing to keep in mind is to make sure that you share the same values and mentality with your PM. If you can’t see eye to eye, how can you expect to maintain a positive business relationship over a period of years? You are putting a great deal of trust into their hands, and you need to be satisfied with their business practices and comfortable discussing any issues with them.
Now – how to find the perfect property manager? One of the best ways to connect with a great PM is through referrals! Ask a real estate agent or another property owner that you trust for recommendations. Once you’ve gotten a few names, do your homework and check them out online – Facebook, Yelp, Better Business Bureau, and their company website are all great places to start. Ultimately, though, be sure to make your choice based on who you are most comfortable with!
Need a referral for a trusted property manager? Lyon | Stahl has got you covered! Visit our website for more info on our wide range of real estate services!