Interviewing Property Managers
Once you decide that it makes more financial sense for you to hire a professional property manager, you need to go about finding the right one for you and your property. There are a few questions you should be prepared to ask a potential property manager before you start working with that company.
Researching Core Competency
Before you even schedule an interview with a property manager, check out the property manager’s website and see what the home page looks like. Notice if it talks about buying and selling real estate, or if it focuses on managing rental property. You want to be sure property management is the company’s core competency. You wouldn’t hire a general practitioner to perform heart surgery, so why hire a general real estate company to take care of property management? Also, many real estate companies/property management companies or focused on making tenants future home-buying clients. Do you as a landlord want your property manager to have you or you tenant’s best interest at heart?
Discuss Technology and Software
Ask your property manager what kind of software tools they are using. There are a few examples of top shelf property management software out there. There’s PropertyBoss, which is what we use, and also Appfolio, Rent Manager, and Propertyware which are very good. Make sure the company is using a fully functional property manager software program and make sure they’re using it properly. There are a lot of functions within these programs and it can be surprising when companies don’t take full advantage of the technology they have available.
Find out if there’s an owner portal where you’ll be able to view invoices and also documentation that goes with the invoices. Make sure you’ll be able to access leases, management agreements and inspections. You should be able to see it all from the owner’s portal provided by the property management software. The data should be available online real-time 24/7. At DKRentals, as soon as an invoice is received, it is posted to PropertyBoss, scanned and put out on the cloud and available for the landlord to view on the Owner Portal.
Work with Licensed Brokers
Ask the property manager if the company is a licensed brokerage. Most states require a property manager to be a licensed broker. In Georgia, property managers are licensed through the Real Estate Commission. Some clients work with unlicensed property managers, but that can be a mistake. Especially if those managers disappear with the security deposits or suddenly cannot be contacted. If a Property Manager offers you unbelievably low fees, perhaps it is because the property management company is not licensed and insured.
Explaining Property Management Fees
Always ask to see a property manager’s total fee structure. You don’t want to negotiate only the property management fee. Take a look at what all the costs will be and then do a comparison with different companies to see who is giving you the most service and the best service for less. These four questions will get you started on a good interview with potential property managers. Don’t hire anyone until you are satisfied the company will do a good job managing your investment.
