Property Manager Screening

[James Denon]

Does anyone know a good property manager in Springfield MA?

I am buying a 3 family home built in early 1900s. It is fully occupied with good cash flow.

I am looking for a property manager who provides good service to the tenants and me and has good rates. I am looking for something in the neighborhood of 5-6%.

This is my screening questions that I will be asking? Am I missing anything?

1. What is your property management fee? (percentage of gross rent or flat fee)

2. What is your tenant placement fee?

3. What is your make ready and cleaning fee?

4. Do you charge property management while a unit is vacant?

5. Are you have licensed in: electrical, plumbing, HVAC, builders (drywall, carpentry, renovations)

6. What are your hourly rates? Will you provide material and labor receipts with the before and after pictures for the repairs?

7. For any repair I would like you to call for authorization. Will you be OK with that?

8. Will you visit the property once a week and take photos of areas of interest once a month? Do you charge per visit?

9. What is your rent collection process?: Online, Cash, check? Please provide an example of the monthly statements you send to investors. 

[Linda Hastings]

I don't know anything about property managers in MA, but most PMs I've seen in other places charge between 8 and 10%. Unless 5-6% is the norm in that area, I'd be concerned about the quality of manager you would get for that low of a rate. It is also a bit unrealistic to expect them to visit the property once a week (and if they did, I'm sure they would charge you extra for it).

BP has a pretty good PM Interview Worksheet in the FilePlace. You might consider adding some of the questions there to the ones you already have. Another idea I read recently in a blog post was to call the management company posing as a prospective tenant enquiring about one of their available properties to see how their customer service is. This can give you a feel for how they would be treating your tenants.