Do you own residential real estate investments? As a responsible property owner and real estate investor, your top priority is the bottom line. You want to ensure that the real estate you’ve invested in returns the highest profits with the lowest amount of headaches. Which is why you want to ensure you hire a reputable company in the world of property management.
The good news? You’ve come to the right place here at Nomadic Real Estate. If you’ve been vetting other property management companies, though, detailed below are fifteen key property manager interview questions. With this set of questions, you can trust that your screening process only filters the best management options available in your area.
Consider the following statistic regarding the property management industry throughout the United States: In 2019, the real estate management industry generated over $75 billion in revenue.
In other words, new property management companies are opening their doors to grab a piece of the pie. Which then leaves you with tons of options to navigate. But don’t worry, bookmark this page and have it ready for upcoming interview questions for property management companies you meet with.
1. Is Your Team Familiar with the Latest Real Estate Trends?
One of the first things to bring up is the market knowledge base of your potential property manager. When you hire someone to fill, manage, and maintain your property, it’s in your best interest that they’re familiar with current real estate trends.
Fortunately for your investment property, between the years 2006 and 2016, the number of United States renters has increased by 25%. In other words, it’s easier than it was just a few years ago to find quality, interested tenants. Your property manager should be fully prepared to market and fill your property in no time.
Every area in the United States varies in terms of the rental market. So, never be afraid to ask about the current real estate market trends in your properties’ specific area during your hiring interview. That way, you can get proper insights as to whether your potential property manager stays relevant to today’s trends. Otherwise, it’s not too likely they’ll succeed in finding the best, reliable tenants for you.
2. How Does Your Property Management Style Differ from The Local Competition?
You might feel uncomfortable asking a potential property manager about their competitors. If they maintain their professionalism and aren’t trash-talking, you may be speaking with a great company. Overall, there’s no reason they shouldn’t be able to talk about the local market trends.
After all, every property management company is going to be unique in its service offering and pricing structure. This question is a chance for your potential property manager to explain how they’re different from others – and should be able to put you in touch with a few of their clients as a reference. Plus, this is a golden opportunity for them to show you how they will shine ahead of any competitors.
For example, take a look at this article about how to find the best property management company in your area. If your potential property manager doesn’t meet these qualifications, you might need to keep looking.
3. Can You Detail Your Experience with Rental Properties?
Don’t hire a property management company that doesn’t have any experience in the industry. It might be tempting to hire an affordable service that’s just starting. Still, you deserve to hire someone who has proven their efficiency and reliability.
After all, even experts recognize how hard it can be to maintain properties these days. For that reason, it’s wise for you to ask about previous clients your potential property manager has had.
To be specific, how long has your potential property manager been in business? Why have contracts with clients ended in the past? Has there been any history of unethical practices? What issues have they run into in the past, and how were they addressed?
You and your investment deserve to feel completely comfortable with your property manager. Don’t be shy when you’re hunting for these critical details. It’s your money on the line.
4. What Software Does Your Property Management Company Use?
In the modern digital era, every industry has incorporated the development of software and technologies. When it comes to the property management business, there’s no exception.
Ask your potential property manager which software solutions they have experience with. Is that system easy-to-navigate? Overall, ensure that you’re comfortable working with the software portal your property manager will be using to communicate and maintain your properties.
5. How Is Rent Going to Be Determined?
Don’t forget to ask about how your potential property manager will determine rent for tenants. This question goes hand-in-hand with proper knowledge of current real estate trends in your city, county, and state.
Be willing to ask for specific details regarding the rent formula your property manager will use. If you have any input regarding how rent should be determined, now is the time to provide it. That way, you and your property manager can stay on the same page moving forward.
6. How Is Rent Going to Be Collected?
Another crucial detail to remember is the collection of rent. As mentioned above, it’s worthwhile to hire a property manager who’s up-to-date on the day’s latest technology solutions, which automate rent payments.
A high-quality software solution makes it convenient for property managers to collect rent on-time. Plus, you can trust the software’s accuracy and efficiency of financial transactions.
At the same time, ask your potential property manager about other solutions they use in operating the business. For instance, is there an alternative option in case some tenets prefer to pay in-person?
7. What Financial Obligations Will be My Responsibility?
Speaking about financial transactions, don’t forget to ask your property manager about their fees. You both need to have a thorough understanding of this part of your agreement.
For one thing, what percentage of the rent will your property manager be taking?
It’s wise for you to research current trends in paying for property management services.
Also, what repair and maintenance services will be your financial responsibility?
Remember to ask about any hidden fees, too. Otherwise, you will face running the risk of getting taken advantage of or surprised by your financial obligations in the future.
8. How Many Rental Properties Is Your Company Currently Managing?
Sometimes, property managers can be stretched too thin. This happens, in particular, when the property management team has too many clients and not enough staff.
That’s why you should ask about your potential property managers’ current obligations. Also, ask about the size of their staff and maintenance crew. This will provide you a good idea as to whether or not they can offer your property the proper quality of management services.
It’s always a good idea to read the testimonials of previous or current clients, too. That way, you can determine whether or not you can expect five-star treatment as a brand new client.
9. What Are Your Marketing Strategies?
One of your property manager’s key responsibilities is going to be filling your properties with renters. That means they need to be adept at finding and attracting those potential tenets.
During the hiring interview, ask your potential property manager about their marketing strategies. With the online marketplace of the modern world, digital marketing should be a top priority.
For that reason, ask if you can see any current advertisements for vacant rental properties that they manage. Take a look at the property management business’s website, too.
Do you like the design and marketing messages they use overall? Do they invest in their brand? If so, you can likely trust this property manager to solicit trustworthy tenants for your properties.
10. How Will Repairs and Maintenance Be Handled?
Another primary job for your property manager is going to be maintenance and repairs. When your property presents an issue for a tenant, it needs to be addressed promptly.
Check out the following statistic regarding homes throughout the country. A typical homeowner spends one to four percent of the home’s overall value on repairs and maintenance.
That means you can expect your rental properties to need some sort of maintenance or repair regularly. When you hire a qualified property manager, this will be their responsibility.
Do you trust their system of handling and processing work orders? Are you satisfied with the level of experience exhibited by their maintenance crew?
11. Is Your Company Properly Licensed?
Did you know that different states require different licensing for property management services? It’ll be up to you, though, to do the research and determine what qualifications are needed in your area. Then, you can ask your potential property manager about their current licensing, if any.
For instance, most states do require a license as a real estate broker to be a property manager. After all, they’ll be doing a lot of similar work when it comes to finding residents for their available homes. Though, some states require a more specific association with a recognized real estate organization.
Ask to see proof of their licenses. You deserve to feel comfortable with your hiring decision.
12. Is Your Property Management Team Properly Insured?
Not only should your potential property manager be adept at maintenance and repairs, but they should also be covered by a thorough insurance policy as well.
It’s an unfortunate truth that accidents do happen. If a maintenance technician is injured on the job, for instance, you don’t want to be the one liable. Take a look at your property manager’s insurance policy details before hiring them.
13. How Will Communication Be Handled Between Myself, Your Management Team, and Renters?
A modern software solution may be great for most communication between you and your property manager. To develop a trustworthy relationship over time, though, other communication channels should be open.
Take the time to work with your potential property manager regarding the best ways to reach each other. This can be of particular advantage in times of stress of crisis concerning your properties. You want to be able to get ahold of your property manager whenever you need to.
It might be worthwhile to ask about how other clients have communicated in the past. Are texts or phone calls more successful, for instance?
Remember that it can sometimes be wise to have an archive of communications between you and your property manager. Both parties should be in agreement about the appropriate ways to handle getting in touch.
14. How Are Late Payments or Evictions Going to Be Handled?
Not every tenet your property manager finds will be worth maintaining. As these unfortunate circumstances come up, how is your potential property manager going to deal with them? What processes are in place to ensure late payments are eventually recovered, for instance.
No matter what, your property manager should still maintain a high level of respect when it comes to evicting tenets. This is the same for delinquent behavior or late payments by the tenants. After all, there are legal considerations to remember when it comes to evicting someone.
15. What is Your Familiarity with Legal Regulations?
Speaking of those statutory regulations, your property manager must be familiar with them. For more detailed specifics about Arlington County, check out this article on local rental laws.
You should confidently rest assured knowing that your properties won’t cause you any legal headaches in the future. Be cautious to not make the mistake of hiring a property manager who isn’t familiar with local or federal laws regarding renters.
Don’t Put Your Property and Your Money at Risk. Hire the Ideal Property Management Company
Hopefully, now, you have a thorough understanding of the most essential property manager interview questions. In today’s competitive industry, you must hire the best company in your area. After all, you’ve already invested time, money, and energy. Now, it’s time you deserve the peace of mind that comes from knowing you’re making the most of your properties.
That’s why qualified property management companies take their client relationships seriously. You must trust the property management you end up hiring.
Well, perhaps that’s where we can help you. We have plenty of experience providing clients, just like you, with top-quality property management services. We offer a variety of customized management services to find a solution that fits your needs.
Go ahead, feel free to browse through our blog, as well as the rest of our website! On it, you’ll find today’s latest and most significant trends in property management and real estate. It’s worthwhile to stay informed of the best practices and relevant topics on the market.
Plus, you’ll see just how our team can help you with your property management needs. Ready to get started? Check out our property management services today.