Property Management Screening

[Jordan Butz]

I'm convinced that most people could do a better job at managing tenants than I. For me, I just find it easier to wrap your head around just managing 1-2 people rather than trying to do everything that they are supposed to do but with multiple units. What are the best ways to screen potential property management companies to determine IF they are going to be a great fit into your system? Are there any crucial and specific questions that you all aim to ask in an interview with them?

Thank you all so much! You all are the best!

[Kim Meredith Hampton]

Hi Jordan

Property Management is the key to success in your real estate investing. Here is a copy of a blog I wrote. Good luck on finding a professional property manager. You could also check the National Association of Residential Property Managers NARPM.org This lists PM by state and area:
Hiring a property manager is an important decision, and can be an asset for a property investor, but can also be a detriment if not chosen carefully and without some due diligence. Here are 10 tips on hiring a professional property manager:
1. Make sure that your property manager is a licensed Realtor or Broker, look them up on DBPR, the department of business & professional regulation.
2. Make sure their office is relatively close to your rental property. The farther it is, the harder it is to manage, show, find tenants, get vendors and inspect
3. Look at the experience of the Property Manager. They may not know the Fair Housing laws, take too long to fill the vacancy, have licensed vendors. How many units do they manage, or are they just doing this “on the side” for extra income.
4. What is their policy for dealing with evictions?
5. Are you willing to give up control? Most Professional Property Managers do everything; collect rent, schedule maintenance, pay taxes, pay mortgages & HOA dues, process security deposit claims, marketing , leasing , on call 24/7, handle landlord-tenant conflict. Its exhausting.....
6. Examine their management agreement, check to see if there is an out clause if you are dissatisfied, make sure it spells out the responsibilities of the owner and the property manager 7. What type of fees do they charge? Most companies will charge a management fee, leasing or placement fee and renewal fee. Ask if there are any any additional fees for maintenance, advertising, evictions, etc... and make sure they are outlined in the agreement. Do your homework, don't be fooled by low or flat management fees.
8. When and how will you receive your money each month? Will I receive a monthly statement? 9. Do they perform property inspections? What kind and how often?
10. How do they handle maintenance complaints or emergencies from tenants?