Do you own an investment property but don’t have the time or desire to work with tenants? A property manager will oversee everything from collecting rent to organizing maintenance – for a fee. If you’re considering this option, here are a few questions to ask prospective managers.
1. What is your rate?
Depending on where the property is located and the range of services you’re looking for, rates can range from five percent of the rent to over 20 percent. Between seven and 10 is typical.
2. License and registration, please.
Most states require property managers to have either a real estate broker’s license or a property management license. Check your state’s policy with the U.S. Department of Housing.
3. What experience do you have?
Does your property have a pool? Is there a walk to shovel? Be sure you hire someone with success in handling a property similar to yours.
4. Can I see the management contract?
Check exactly what is included and what will result in extra fees. Look over the policy and process for when renters are late with a payment, and check to see if they charge extra for filling vacancies.
5. How many people have you evicted in the past year?
If it seems like a big number relative to the number of properties managed, they might not have a quality process for screening tenants.
6. Who’s your Maytag man?
Find out if they have their own maintenance crew or if they hire outside vendors (and mark up the fee).
7. What is your maintenance response time?
Problems with appliances, plumbing or the structure of the home itself should be handled in a timely manner.
8. What’s the process for terminating our agreement?
Know your exit strategy in case you’re not happy with the service.
9. Can I have three references?
Don’t just take the company’s word. Call and find out if other clients were happy with their services.
Are you interested in purchasing an income property? Connect with a local agent today to check out your options: www.remax.com/officeagentsearch/.