What Should I Ask My Potential Property Manager?
Managing an investment property on your own is quite hard, especially if you don’t have the knowledge and experience. But that’s where a property manager comes in - they can do the work for you. How can you pick the right one? Here’s a list of questions you should ask your potential property manager.
How knowledgeable of the local rental market are you?
A property manager should have adequate knowledge and experience. Ask them how long they’ve been a property manager and what other experiences they’ve had with real estate before being a property manager. Don’t hesitate to ask for referrals from previous or present clients with similar properties.
Are you familiar with relevant laws and policies?
Numerous legislation govern owning and leasing an investment property. Those legislations are constantly going through amendments as well. It’s important that property managers are up-to-date with said legislation. They should have proof of professional development training.
What is your marketing strategy?
They should have a clear marketing strategy that can attract tenants. Ask them how they advertise your property. Do they use social media? Are they more traditional? What time do they do viewings? Make sure that they have a clear and focused strategy for your type of property, and a database of good tenants.
What is your edge?
Ask them what they think makes them stand out from the competition. Look through their strengths and weaknesses.
How much does the management cost?
Ask for the full breakdown of one-time and ongoing fees involved. Some of the basic fees are management fees, letting fees, and administration fees. Make sure that you understand what each of these fees include.
How many properties do you and your agency currently handle?
One of the essential things to look for a property manager or agency is that they have enough time and resources to allot on you and your property. It is ideal that a property manager has less than 120 properties to manage.
How does your team work?
You need to know everyone involved in handling your investment. Do they have a good team to support them in the different aspects of property management? Who will inspect the property? Who will do maintenance? Ask the person you’re talking to if they will be the actual manager looking after your property. If not, set a follow up appointment so you can meet them. Ask the questions you asked the other manager.
What is your communication system with your landlords?
They should be in regular communication with the landlords through an agreed-upon method, be it through email, phone, monthly personal meetings, etc. They should also inform you of every happening in your property such as a tenant vacating, renewals, reviews, maintenance issues, and the like.
How do the finances work?
It’s important that you understand how and when rents are collected and when you can expect to have the money - that’s your property manager’s job. They should also explain to you what the management fee entails. All of these should be in the management agreement before you sign it.
How will my property get good tenants?
Property managers should have a tenant screening process in place. See if a tenant’s credit and past rental history is included in the screening process. These two factors are very important as they will show if a potential tenant is likely to incur arrears.
What is your estimate of the rental potential of my property?
After they give an estimate, ask them how they got the estimate and ensure it’s based on similar properties in the area. Then, ask them how to make the property a reliable source of income and how to increase the property’s returns. They should constantly inform you on the property’s rental returns or how much it might be worth if it’s for sale.
How often will my property be inspected?
This is dictated by legislation, but you should make sure that the property manager will abide by that legislation. Also, find out if you’ll receive reports every after inspection, and if there are additional costs involved.
How do you deal with any potential issues?
While it’s important that they inform you on every happening in your property, discuss when the property manager will inform you - during or after? For example, do you need to be informed everytime there’s a maintenance request or once it’s done? Discuss these fully before you fully agree and select a tenant.
What if my property needs urgent maintenance?
Ask them about the process of attending to urgent maintenance requests. They usually have a list of contractors they use in these instances. You need to know whether they work with a pre-agreed financial limit. Make sure that you’re happy with how their process before agreeing and signing a contract.
Do any of your tenants currently in arrears? What do you do?
It’s for you to find this out, because one of the key responsibilities of a property manager is to ensure that tenants pay their rent on time and in full. Also, ask them what policies they have in place in case a tenant incurs arrears.
What stipulations can I add in the management contract and the tenancy agreement?
If you have any special requests for tenants or for the property manager, this is the time to discuss it.
We hope this list helps you! If you’re looking for a property manager, look no further - we’re here! Champions in Real Estate will manage your property like it's ours. Our clear and focused marketing strategy, clear communication, your property information at your fingertips, we ensure that your investment is in good hands. Want to know more? Just drop a message!
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