Screening Property Management Company

[Clint Cook]

What are some good questions to ask, and things to watch out for when looking for a property manager for a Single Family Home?

[William Hochstedler]

@Clint Cook It sounds like @Brandon Rindlisbacher might be able to give you a few specific recommendations.

Look carefully at the fine print. PM companies are famous for nickle-and-diming. Contract signing fees, lease signing fees, turnover fees, marketing fees, etc. Many PM companies are a flat percentage of rents (they don't make money unless you are collecting rents). Look for those models as they share your occupancy goals.

What do they charge for postings and evictions?

Read their lease. What are their pet policies, smoking policies, renter's insurance, etc.

What are their vacancy rates? In our market we look for under 5%.

As a colleague of mine once said, "Property Management is just an endless opportunity to drop the ball." It might be an interesting to pick a few stories from Brandon's post http://www.biggerpockets.com/forums/52/topics/79978-whats-your-tenant-horror-story and ask them how they'd handle it. A good PM company should have proactive policies to handle bad situations.

Lastly, I like to deliver properties in their best possible condition (no nail holes, professionally cleaned carpets, etc) and hold the tenants accountable for the condition so slobs can be held accountable. Ask how the PM company documents and holds tenants accountable for damage.

Finally, I want a PM company to physically get to the property more than me. Are they doing drive-by's, spot inspections, or seasonal inspections. If so do they charge for them and how am I informed of the results?

As far as referrals, you might also ask a few real estate agents about the PM companies reputation. Many RE agents at least know general reputations of the companies in their market.

Wm