What 5 Questions Should You Ask A Property Manager - Before Hiring Them?
It's important to choose the right property management for your investment, as this may be what separates a profitable and losing venture. The key is asking pertinent questions in order to find out whether or not they're qualified professionals who will take care of all aspects of managing your rental properties. Avoiding problems such as non-payments or illegal activities can happen with some due diligence on the part of both you and them!
If you're looking to hire a property manager, it's important to do your research beforehand. You'll want to ask them these 5 questions before agreeing on anything.
1. Do They Have A License For Property Management?
In California, you must be a licensed real estate professional in order to lawfully manage rental property for someone else and get pay. Be careful of "property managers" who do not hold a valid state license, which is necessary from the state before they can legally work with your house or apartment. In addition to holding their own licenses, some organizations provide certification programs that give professionals more qualifications than just an individual's personal experience.
In other states, property managers must be licensed to engage in real estate operations such as leasing and managing investment properties. When a property manager is licensed, it indicates they have never been convicted of any crime related to theft or extortion—which ensures that only the most trustworthy professionals are allowed to practice their trade! It also implies they spent significant time in the classroom and have actively practiced real estate brokerage for some time before becoming certified.
2. How Many Properties Are They Managing At Present?
You cannot have a successful property management company if your prospective manager has to split their attention among too many properties. If you are looking for the best of the best, make sure your potential employees can devote 100% of their time and energy to directing all that is required on behalf of each rental unit under his or her care.
3. How do you go about vetting potential tenants?
Property managers have the power to make or break a deal. It is important for prospective tenants to know that their property manager goes through a rigorous screening process, and they are able to investigate an applicant’s criminal history before leasing their space. Always be sure your potential property manager investigates these factors as well as other aspects of being responsible landlords such as verifying work histories and papers from applicants, among others!
4. What factors go into determining rental rates?
A seasoned property manager should be able to give you a competitive price for your property. They will also offer the best advice when it comes to calculating rental rates. You'll have an easier time securing renters if their prices are comparable with other properties in the neighborhood, or even cheaper than some of them!
If they charge more than others do and then ask you to raise the rent, later on, those potential tenants might get tired of not being able to afford the rents at that point and just move out instead so reconsider working with this type of management company - find one who can give up-to-date market pricing information based upon current data.
5. How Long Will It Take Them To Reply If You Have A Concern?
To avoid losing potential tenants, it is important to have a property manager on call. Landlords should be able to reach their management company within one business day for any queries or worries about the lease agreement and they can't afford not having an immediate response from those managing their properties.
As a property investor, you know that hiring the right property manager is crucial in getting great results. So it’s important to interview them properly and ask all of the tough questions before making your decision. Let us know so we can help guide you in finding the best person for your business. We are always happy to partner with other entrepreneurs like yourself who want to get more out of their investment properties without taking on any additional risk or responsibility themselves!