What questions to ask when choosing a Property Management Company

[Janelle Byrkit]

Good morning all!

My husband and I are thinking about investing in our 1st multiplex (2-4 plex) rental. We will not be living in any of the units and the property will likely be 2-3 hours away (Sacramento/ Stockton, Ca.) from where we live (Hayward, Ca.), so we plan on hiring a Property Management company. When doing our research what would be some key things to look for, questions to ask, etc. Right now I've been Yelping companies but before I start making phone calls, I'd like to ask my friends & mentors at BP what are good questions to ask when choosing a Property Management company. 

Thanks so much!

Janelle

[Kim Meredith Hampton]

@Janelle Byrkit Here is a copy of a blog I wrote on hiring a professional property manager, hope this helps. All the best

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?

Property managers are great as a third party buffer or middle man, this is a business to us, it's not personal. Tenants understand they are dealing with a professional.