Questions to Ask a Property Management Company for MF Properties

[Tony S.]

Below is list of preliminary questions I plan to ask various property management companies in my market this week before choosing one to manage my multi-family, value-add property (once I find and close on the deal). Please let me know if I missed anything:

1.How is your management fee calculated? What does the monthly fee include? (Note: Request a price sheet of everything that’s not included in the management fee.).

2.What kind of properties do you specialize in managing? Can you provide me with a few addresses of properties you manage? (Note: Visit those properties, inspect the overall cleanliness, and shop the property as a potential tenant to see how proactive they are in getting you to fill out an application).

3.How long have you managed in this market and how many units total do you manage? (Note: they should have been managing the type of your property for at least 5 years).

4.Do you provide written management plans for your clients?

5.Do you have a tenant retention policy? (Note: Red flag if the property manager cannot provide a tenant retention policy).

6.Do you have a marketing plan to attract tenants, and if so, what does it look like?

7.How long does it take for a typical unit to be made ready after a tenant moves out?

8.How quickly do you schedule showings and return phone calls for potential applicants?

9.How do you screen the tenants?

10.How quickly does it take you to approve tenants and have a lease signed?

11.How often do you communicate with the owner? (Note: Try to obtain various sample reports generated by the management company for their clients).

12.Is the maintenance performed by your staff or outside contractors? If it’s kept in-house, what are the current hourly wages? If contractors are hired, do you obtain multiple bids?

13.Do your managers go through any type of special training or continuing education courses?

14.Will there be an individual property manager assigned to my property, who will that be? (Note: Meet and vet the individual property manager.)

15.Will I have signing authority to the bank accounts where the management company keeps revenue generated from the property? (Note: You must have the ability to sever ties quickly and not have the management company hold your bank account hostage.).

16.Does the contract have a cancellation clause allowing me to terminate the contract upon 30 days’ notice? (Note: You should have the ability to terminate for nonperformance.).

17.Do you just manage or do you also sell? Will I be required to list my property with your company when I want to sell it? (Note: Do not accept a clause in the contract requiring you to list the property with the management company.)

18.Why should I use your company? What do you offer that sets you apart from other companies?

19.Have you been sued in the past 5 years?

20. Do you have any references of current owners you manage the property for? (Note: Get at least three and call them).