Hiring a qualified Property Manager may be one of the most important decisions that you will make after purchasing your rental property. Renting a property can be a significant investment, so you want to hire someone that you can trust completely.

So once you begin interviewing potential property managers, what are the most important questions that you should ask? Below are the five most important questions that you should ask your property management company:

1. What do you charge for a management fee? This may seem like the most obvious question, but it is one of the most important. Property management companies typically charge between 4-10% of the gross monthly rents collected each month. Some companies charge additional fees, while others only charge the monthly management fee. It is very important to discover exactly how much the property management company will be charging you.

2. What screening is done on potential tenants? One of the main reasons to hire a property management company is to mitigate the risk associated with entering into a lease with a bad tenant. A good property management company will conduct a thorough background and credit check, as well as verifying all references.

3. Does your management agreement include a termination clause? The last thing that you want to do is enter into a long-term agreement with a property management company only to find out that the property manager is not holding up to their side of the agreement. A quality property management company is confident in their service and will offer a “satisfaction guarantee” that will allow you to cancel the agreement if you are not happy with the service.

4. How many properties does your company manage? Keep in mind, there is no right or wrong answer to this question. If the property management company manages several hundred properties, you will know they are successful and have been in business for some time. If the company is smaller, you can expect superior customer service and a more personal relationship with your property manager. You will need to decide which is most important for you as an owner, but the most important thing is that the company has adequate staff to handle their inventory.

5. Will the property management company authorize maintenance requests without consulting the owner? A good property management company will authorize maintenance requests under a certain dollar amount, without consulting the owner. This allows the management company to maintain the property without having to bother the owner every time there is an issue. Obviously, the company will obtain permission from the owner anytime there is an issue that is going to cost the owner a significant amount of money.

From: https://wolfnest.com