Questions to Ask a Prospective Property Manager
Real estate investment can be a very lucrative venture, but it can also be hard work. Unless you’re simply flipping properties, you need to put in a lot of effort to manage your properties successfully.
That is unless you find the right property manager. Property management is tough work and often requires a lot of hours. If you own multiple properties, it can be difficult to do this on your own.
Hiring a manager is a great way to keep your properties in good shape while you focus on finding other investment opportunities.
However, it’s important that you find the best building manager available. Hiring the wrong person for the job could run your property into the ground.
Make sure to ask prospective property managers these questions to find the best person for the job.
How Long Have You Been in Business?
Your property manager should have a history of successful property management endeavors.
When you hire a building manager, you’re essentially passing off your investment to somebody else. As such, you should make sure that your property is in good hands.
It’s recommended that you find a manager with at least five years of experience to take control of your property.
What Services do You Offer?
The more services that your new property manager or management company can offer, the better.
Property management goes beyond maintenance and inspections. You should try to find a manager that also offers marketing, leasing, and selling services.
This will make it much easier to flip your property should you ever make that decision.
How Many Properties Do You Manage?
This question can tell you a lot about a prospective property manager’s experience and service quality.
If the manager only manages a few properties, that may imply either inexperience or poor service. Too many properties and your property may not be handled as a top priority.
It’s also helpful if they manage other properties in your area. This will help them understand the details of your local market.
What Type of Properties Do You Manage?
Do you primarily deal with apartment rental units? Single-family units? Commercial properties?
It’s important to find a manager that has experience running properties similar to yours. A great commercial property manager may not understand the needs of a residential property.
How Do You Set Rent Rates?
Good property managers should be able to explain exactly how they determine fair rental rates for properties in your area.
They should be able to perform accurate market analysis to determine fair value based on a number of factors, including location, local economy, amenities, and more.
Managers should use real estate comps to set rent rates based on similar properties near yours.
Are You an Active Real Estate Investor?
Good property management companies should also be focused on increasing the value of your property.
If your prospective building manager isn’t an active real estate investor, they likely won’t understand what they need to do to optimize your property’s value in the event that you want to sell it in the future.
By asking these questions, you can ensure that your new building manager has the qualities and experience to successfully run your property.