Top 25 Questions to Ask Your Property Management Firm

[Nick Mertens]

Here is the list of questions I tell our potential clients to ask any other property management firms when they are interviewing them. Anyone have anything to add to the list?

• 1.Do you think your Property Manager is paid in a way that aligns your interest with theirs?
• 2.Most Important: Can you provide references - names and numbers of other investors who work with your company?
• 3.What is the structure of the personnel in your organization and what type of support staff do you offer the actual Property Manger? (Examples: Is there an Accountant? Is there a Regional Manager? Handyman? Who/what do you use for a system of checks and balances to make sure that your Manager is on top of renting/quick turns/collections?)
• 4.What is your average turn time on repairs and replacing a new tenant and how long are your units typically down?
• 5.What is your annual renewal rate?
• 6.How long does your average tenant stay?
• 7.What are all of the hidden fees and costs associated with this? (Examples: The company/representative may state or advertise that they only have a 5% management fee, but this is typically just a small part of the equation as they are actually more like 7-9% of total EOI. Do you have additional charges for maintenance and, if so, how much? Do you have a per unit monthly fee? A new lease fee? A renewal fee? A resident manager fee? A janitorial fee? An accounting fee? A split on late fees? Marketing/Advertising fees?, etc.)
• 8.Do you require inspections on a regular basis from your staff? (They should perform at least a quarterly inspection.)
• 9.How do you handle capital improvements?
• 10.Do you charge me a monthly fee for a unit that is not collected and/or occupied?
• 11.What reserves do you require per unit?
• 12.How will you be transferring funds to me?
• 13.What property management software do you use? (Examples: Yardi, Buildium, Quicken, Rentec Direct)

• 14.How do you market the units to residents?
• 15.What does your website offer? Is there a resident portal or third party site for online payments or maintenance requests? Are there tools, reports, or other resources for investors?
• 16.What do your tenants say about your property management services/have you ever done a survey to your tenants on your PM services?
• 17.What kind of lease do you use and what are the addendums? Please send it to me.
• 18.What is the eviction process like in this state? Timelines?
• 19.What attorney do you use?
• 20.What do you believe sets you apart from your competitors?
• 21.What does your monthly statement look like? Please send an example.
• 22.Are they a CPM (Certified Property Manager)?
• 23.Please send me a copy of your contract.
• 24.What do you look for when screening a new tenant and what is the tenant screening process?
• 25.What do you charge tenants for an application and what is your cost? Who captures the rest of the money?