An integral part of the business system is to free up time for yourself. One way of doing that could be hiring a professional property manager. A good property manager will make your life better and allow you time to find more deals, money partners and enjoy your life. Isn’t that why we get into real estate in the first place!
Your role will be to “manage your property manager” and ensure they perform their duties to your satisfaction. Too many times, investors try to negotiate the property managers’ fee down to save on costs. This is often a pivotal mistake! The property manager is your eyes and ears to the property, your tenants, maintenance, evictions, rent collections, and so much more! They are the contact point between you and your tenants. Negotiating their fee down may lead to bad feelings towards you and your property. Paying their fee and showing them praise for well-done tasks is preferred to do the business. Again, the property management fee is a business expense, and it can save you time and stress.
How do you select a good property manager? That can be a challenging task at first and is something that every investor has dealt with. Good property managers are indeed hard to come by, and once you find one, they will pay you back in dividends. Here are some interview questions you could ask a potential property manager:
- What areas (city, neighborhood, etc.) do you manage?
- How much do you charge (usually a percentage of collected rents)?
- What is included in that fee? Please be specific.
- What is your eviction process?
- How long does it take?
- How much will it cost?
- Do you perform renovations or contract it out?
- What is your rate for renovation work?
- What do you charge for unclogging a toilet, fixing a leaky tap? Day time rate vs. evening/weekend rate.
- Tell me about your marketing to fill my vacant units.
- How long until a qualified tenant moves in?
- How do you get paid on that when no collected rents? Placement fee?
- How many staff do you have per 1000 units? This can tell you how fast they may react to your tenant’s concerns.
These are just a few questions; there are plenty more you can ask to determine if this property manager is a good fit to work with you.