Many homeowners invest a lot of time and effort deliberately researching property markets and neighborhoods when buying a home. They disregard the role a property manager can play in protecting their property's capital value and maximizing the owner's income when it comes time to lease out the home.Landlords tend to pick their property management company based on management fee alone. We have compiled a list of questions landlords should ask when hiring a property management company.
How long have you been a property manager?
When hiring a property manager make sure they have a long proven track record of managing properties.
What does your management service encompass?
Look for a sense of mission in your discussion instead of a litany of tasks.
What if I want to terminate/transfer services to another company?
Are there any fees? And what is the policy to terminate services?
What other services provided in the management of my property could be charged for?
Examples: legal representation, communication costs, fees for attending HOA meetings, costs for obtaining additional estimates, lease renewals.
What training and licensing do you have?
Both Property Manger and the Management Company should be licensed with the state of Texas and should be members of some of the following organizations: IREM, NAPRM, Texas Realtors
How many vacancies do you have right now? Out of how many total units under management?
This will tell you their vacancy rate and if it's in line with the local market.
What is your repair request process?
Someone should be available 24/7 to handle all maintenance requests. Tenant negligence should be paid for by the tenant and not the owner.
When will I receive my rent money?
Most tenants are given a grace period of 3-5 days. Therefore, a trustworthy property management company will send owner proceeds before the 10th of the Mont.
Do you offer direct deposits for owner draws?
This will save you time and hassle. Most direct deposits take 1-2 business days for funds to appear in your bank account.
What happens if tenant does not pay rent?
Late rent payments should be tracked. The eviction process should be explained and the company should be using the process in action.
What are your placement fees?
Flat fees from 75% to 100% of the first month’s rent is common.
What type of insurance do you carry?
Errors and omissions insurance and general liability at a minimum .
Can I get references from your owners?
A good property management company that has been in business for a few years should be able to provide success stories.
