Once you have found the perfect rental property, you will want to find someone to manage it for you. When you search for a property, there is a certain criteria to follow to help you find the right fit. The same goes for property managers. A property manager can be a great way to free up your time in order to further grow your business if you hire the right one. So how do you find one that you can rely on? You can start by qualifying them with a series of questions like these.
Question #1: How much experience do you have managing properties?
This is an important question. You need to make sure that the person or company that you hire has the experience to manage your property.
Does the person manage properties as a full-time job? If so, how many years has he or she been at it? Was the property management company just established?
You’ll also want to find out what types of property they have experience managing. For example, if you purchased a building with multiple units, it is best to find someone with experience managing this type of property.
Once you have established that the property manager has the right experience, it is also good to ask how many properties they are currently managing. You want an experienced property manager, but not one that already has too much on their plate.
Question #2: How do you screen tenants for the properties that you manage?
This question provides you with some insight into their screening process and how successful they are with it.
One of the primary purposes for hiring a property manager is to keep your property rented – this is how you earn income.So you want someone who is good at filling vacancies and keeping tenants in the property.
The tenant screening process is crucial. If the prospective property manager does not check references or run credit and background checks on potential tenants, then you could be in for some trouble.
To elaborate on this subject, you could ask how many tenants the property manager has had to evict, or how long it takes them on average to fill a vacancy.
Some additional clues on how well they manage tenants is their process for collecting rent, types of payments allowed, and whether or not they give a grace period for paying.
Question #3: What is your background and education?
While it isn’t a deal-breaker if your property manager did not go to or finish college, you will want to make sure that they have adequate training and background in property management.
If they did graduate from college, what did they study? If a college degree was not earned, what is their highest level of education?
You should also find out if they have any specialized training, licenses, or certifications. Are they a licensed realtor or broker? Or do they hold a property manager’s license? Are they members of any trade organizations? And how do they keep up with new information and technology? Many good property managers make ongoing efforts to keep up to speed on current trends and educational opportunities in the field.
Question #4: How familiar are you with landlord-tenant laws?
One of the last things that you want to deal with when renting your property is legal issues that could have been avoided. That is why it is important that your property manager has a solid understanding of the law.
Ask them for information on the fair housing laws and how their tenant screening process is in compliance with these laws. What is their process for evicting a tenant or terminating a lease?
Also, try to gain an understanding of how they handle landlord responsibilities that are under the landlord-tenant law. What about safety code requirements for your property? These are all issues that they should be very well versed in.
Hiring the right property manager is an important step to growing your business. It frees you up to find more properties, or spend time on other things that you want to do. However, it is important to screen property managers so that you can find the right one for your rental property.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
