Telephone interviewing property managers and management companies

[Baze M.]

Blessings BP,

I'm purchasing multifamily properties in areas I don't reside.  Therefore, I've been speaking to several property management companies lately.  What are some of the main questions you guys ask when you're vetting property management companies over the phone and for the 1st time?  Thank you.

[Marc Cunningham]

Don't waste your time asking for a few client references. Any company is going to have 2 or 3 clients who like them. Rather, do a google search and read the unfiltered reviews (good & bad) on the firm.

1. How long have they been in business (you can fake success very long in this industry).

2. What is their lease renewal rate (turnover is your biggest cost, so you don't want it!). Good companies will have 75%+ lease renewal rates. 

3. What is your monthly collection rate on rents. (most companies won't even know this number - but it is fun to see how they answer).

4. Ask if they will do a month-to-month management agreement terms. Only the best companies are willing to do this.

We have a download on our site called '20 questions to ask a property manager' which may be helpful to you. Under our 'owner resources' page.

If you do your due diligence, you will increase your chance of success dramatically!