It’s critical to interview several Property Managers (PMs) to find the right fit to manage your property. But do you know the right questions to ask these property managers? We’re providing a list of the most important questions you should cover with a PM before you hire them.
Use these questions on a baseline to determine how much their services cost, what kind of customer service they provide to both you and your tenant, and how much work unexpected issues will cost you in both time and money. Knowing how PMs operate their business is key to having a successful relationship.
Check out the podcast to get the full list.
- Listen to the podcast “#138: The Must-Ask Questions That Will Help You Hire the Right Property Manager” Colorado Springs Real Estate Investing Podcast
- Listen to the full episode (at the bottom)
- Watch the episode on YouTube
Top Questions for Property Managers
- What are your costs and how are they determined? Some PMs charge a flat fee and some charge a percentage of the rent.
- What’s the vacancy rate of your portfolio? The lower the number the better because either the tenants are happy and staying, or the PM is adept at filling the unit, or a combination of both if that number is high.
- How long have you been in operation? It’s good to find a PM who has seen a variety of issues and knows how to respond to different situations.
- What is the annual tenant stay and turnover cost? If the average tenant stay is only a year, then you’re turning over the unit on an annual basis, which is very expensive. It can be more cost-effective to keep a good tenant who pays a little under market rent than to have to fill a vacancy every year.
- Do you have preferred vendors and how many types of each vendor do you have? Find out how many plumbers, electricians, etc. they work with so you’ll know if you have any options for who’s doing the work on your property.
- What are your methods for screening tenants and advertising units? You’ll want to find a PM who is comprehensive about screening tenants and keeps up with the ways tenants are researching units