property management questions

[Clarence Taylor]

I'm interested in interviewing a property manager or management company. Seeking various questions to make sure I cover all basis before I turn my properties over to them.

[Lisa Doud]

I am not going to speak for every state, but here in Virginia licensed agent (sales or broker) may manage rental property.  The only difference is the money has to go through a licensed real estate firm, which is required to maintain the escrow accounts accordingly.  I would suggest  you check the North Carolina here is the link to NC licensing law http://www.ncrec.gov/pdfs/studyguide.pdf

I tell all my potential clients that they need to ask these following questions of every property manager they interview and I suggest you interview 3-5 just so you know what you are getting in to.  

1. How much is your management fee, and what other fees can I expect?

2. Do you require a minimum Reserve? (minimum reserve is a designated amount of money that your property manager wants to hold incase the rent doesn't cover any bills).

3. Where are you going to advertise to get my property rented quickly?

4.  How is maintenance handled, can I do my own repairs, or do I have to use their preferred vender, and also ask if there is any mark up's on the bill...

5.  How do you keep track of the ins and outs, do you a property management software, or is done by pen and paper?

6.  When I should be getting paid?  

7. What happens if the tenant doesn't pay rent?

8. Do I have to sign a long term contract with this company?  

I always say that if you sign a property management agreement, it is kind of like marrying someone, it is easy to get hitched but  gets bad it is harder to get unhitched.