@Alberto Leonard
Please do your research! Oftentimes I find that owners are not doing their research, not asking the right questions, and focusing on everything but the right thing. What does any of that mean?
First, get the numbers out of the way! Ask the property manager to show you the numbers! Looking at a sneak peek at the property management services is always a great start. Those numbers could be the following: annual vacancy rate, annual maintenance cost, percentage of residents that renew their first lease, length of resident stay, and number of properties under management.
Secondly, you want your property manager to have a team of experts and local contractors. That team of should be more than capable of conducting thorough assessments of structure, systems, and features of every house. This concept helps draw attention to functionality and consistency. Every resident should feel welcomed into a clean, presentable, and not just some house. That starts with leadership at that company you select to protect your investment.
Finally, reputation is important. Your property manager should know property management! Not all property managers are going to tell you no. That's right.... be careful and try to avoid the who doesn't care where they manage, what they manage, how they manage, etc. That's why you are wanting to be bagged by a company with a reputation built on integrity. As an investor you should expect an excellent standard of care and customer service packaged with transparency. This does not mean you are looking for the "perfect manager" but most importantly a truthful one. Look if they makes mistakes – let's not forget they are human. But what you want more than anything . . . . is the truth, transparency, and their willingness to say no to things that are not their niche! Reputation and transparency is big in this business.
Here are some property management/turn key questions you might want to ask throughout the interview process:
So ask your questions, get your data, and do your research.
Are you an investor?
Do you own in the exact neighborhoods you are managing?
How many investors do you work with?
Do you own all aspects of the operation? (or do they hire third party companies)
Do you offer rental or maintenance guarantees? If they answer yes, ask them why. Then ask them if they will put the guarantee on year three.
Do you defer maintenance?
How many properties do you manage?
Do you sell properties and if so, do you own the properties you sell?
How long have you been in the business?
What is your average vacancy rate?
What percentage of expiring leases will renew their lease each month?
What percentage of signed leases fulfill their full term?
What is the average number of days a property is vacant between residents, move-out to move-in?
What percentage of billed rent do you collect each month?
What is the cost of an average repair bill after move-out?
Do you mark up maintenance costs?
What are your management fees?
What percentage of collected rent goes to yearly maintenance on average?
What is your average number-of-months occupancy per property?
What is your average occupancy rate?
What programs do you have in place to keep residents happy?
What customer service programs do you have in place for owners?
Will you call me every month with an update on my portfolio?
How many team members are dedicated solely to providing service to your clients?
If you are an investor, What has been your biggest mistake as an investor? How do you protect your clients from making the same mistakes?
Again, these questions have a bit of turnkey flavor to them, but they work very well when interviewing management companies. Make sure you take good notes and remember how you feel talking to the companies.
Best of Luck!
