What Are the 7 Key Questions to Ask When Choosing a Property Manager?

1. How Many Properties Do They Manage?

This might be the golden question. Even the most skilled property manager can’t juggle too many properties at once. A heavy workload translates to less attention for your investment. Ideally, you want someone managing around 150 properties. Agencies offering super low rates might be tempting, but beware – they could be juggling hundreds of properties, leading to a drop in service quality. Remember, when things get tough with your property or tenants, you’ll want a manager with time to dedicate to your needs.

2. What’s the Real Cost?

Fees can range from 5.5% to 12% commission, but don’t get lured in by the lowest number. Many agencies have hidden fees for things like lease renewals or inspections. To get a true picture, ask for a breakdown of all annual costs.

Here’s the thing: a good property manager can actually save you money in the long run. How? By minimizing vacancy periods (which can cost you dearly!), finding great tenants who take care of your property, and preventing costly repairs caused by neglect. On the flip side, a bad manager can mean extended vacancies, tenant damage, and endless stress. Sure, fees matter, but finding the right balance between cost and value is key. Don’t be afraid to pay a little more for a manager who demonstrates their worth.

3. What Makes Them Special?

Every agency has its selling point. Find out theirs! Do they offer special perks like upgraded advertising to attract more tenants? Do they prioritize small portfolios to ensure quality service? Maybe they go the extra mile with evening and weekend appointments to minimize vacancy periods. Knowing their unique strengths allows you to compare apples to apples when evaluating fees.

4. How Often Do They Show Your Property?

Open houses are a goldmine for attracting potential tenants. They allow people to browse your property without the hassle of scheduling private appointments. Most interest comes from open houses, so frequent scheduling is crucial. Saturdays are prime time, but don’t forget about weekday options to cater to busy schedules.

5. Do They Offer Private Inspections?

Not everyone can squeeze open houses into their jam-packed lives. Quality property managers understand this and offer private inspections to accommodate busy schedules. After all, flexible tenants who take the time to view your property during off-hours might be the ideal renters – reliable and less likely to be swayed by competing properties.

6. Are They Up for the Challenge?

Even the best tenants can bring unexpected challenges. How your property manager handles these situations directly impacts your investment. Ask about their experience and tenure at the agency. A seasoned manager is a plus, but don’t underestimate the value of stability. High turnover in property management can disrupt your portfolio, so finding someone who’s likely to stick around is ideal.

7. How Often Are Inspections Done?

Regular inspections are vital for keeping your property in tip-top shape. Ask how often they conduct inspections and what they check during each visit. Ideally, you should receive a detailed report with photos to stay informed about your property’s condition.