Property Management Companies

[Jacob Ham]

Hello BP,

When looking for a Property Management Company, what are somethings that you should definitely be looking for, what are some questions you should ask, and what would be some red flags that would make you say no to that company? Would love some advice about this.

Thanks, 

[Jeff Hornberger]

Hi Jacob, I'll list a few things to watch out for:
1. References (always call their references)
2. Ask to review their pm agreement and leases they expect tenants to sign. Ask if you can have them add clauses you feel are necessary.
3. Ask them what their criteria is for screening tenants
4. How long have they been managing properties. How many properties, and how many employees are running the show. Sometimes one man wrecking crews can over promise and under deliver.
5. Do they perform their own condition reports prior to move in or do they have the tenants do them. Are pictures taken. Tenants tend to be lazy when they have to do the reports so if you can't prove the condition prior to move in good luck getting compensated on the move out.
6. Do they offer discounts if they manage multiple properties.
7. What is the cost to "lease up" a tenant.
8. How do they advertise
9. Why did they get into the business. Is it something they have a passion for or are they just doing the day to day grind
10. Do they provide financial statements every month. Most do.
11. How many vacancies do they have and on avg how long does it take to fill them.
12. Do they offer in house maintenance or do they sub everything out. Do you get to see those invoices or do they mark them up.

That should get you a good idea and get some good dialogue going to help you determine a good fit for you.

Good luck!