Property Management – Studio City – Residential and Commercial Property Managers

How Do You  Screen A Property Manager?

If you decide to hire a professional property management company, how do you find one? If you live in a large town you might have several to choose from. If you live in a small town, you might be lucky to find one company.

Just imagine you are a renter and you need to find a house. Where would you look – real estate websites, craigslist, local papers, signs in yards? What company seems to be representing most of the homes you are finding?

Before meeting face to face with any property managers, do some research online. Are the websites professional looking? Would the websites speak to your targeted renter demographic? You can also call and ask some basic questions so you can screen out companies that would not work for your goals.

Example questions include – Is the company only a property management company or a real estate firm as well? Is its focus on commercial or residential properties? In what neighborhoods are most of the properties they manage?

It’s fine if it is a combination real estate company and property management company but make sure it has the resources needed to manage your properties effectively and not all its resources are focused on the real estate side. If the company’s answers meet your needs, you can move on to interviewing them in person.

Now that you have identified a few property managers to interview, how do you know if they are any good? I like to meet them at their office so I can see what my future tenants will see. Is their office neat and organized? Is the waiting room nice? Does the front desk staff greet you warmly when you enter?

These small things do matter and will leave impressions with your future renters. When you meet with the property manager, do you have a good feeling about your interaction? This is someone you will have a long term relationship with and you want to make sure you work well together and can communicate easily.

If everything is going well, you can start asking detailed questions. It helps to have a few basic requirements ahead of time so it will be easier to compare the answers between different property managers.

Examples might be if the company manages more than 50 properties, it uses electronic payments, average length of occupancy is more than 2 years, rent collection rate is greater than 95%, etc. These metrics will vary based on the size of your city, what rental demographic you selected, and how much competition there is between property management companies.

Here are some questions you might use:

What is the fee structure?

Ultimately, my goal is to create a positive cash flow on my properties, and the property manager has the same goal. It’s important to understand the property manager’s profit goals and how it will collect that profit. The primary mechanism for this is through the monthly fee; however many companies will charge fees for other services as well. Understanding the fee structure will drive a lot of your decisions.

In terms of fee structure, I normally ask the following basic questions:

*What is their monthly fee (national average is 8-12%)?
*Will they charge you a fee for starting or renewing a lease?
*Will you pay any fees when the unit is empty?
*Are advertising fees included or an extra cost?
*Are any routine maintenance and inspections included in the management fees?
*How much money do they require to be kept in reserves?

If there are multiple property managers that are willing to service your property, then you have a bit of leverage and should shop around and negotiate where possible.

What kind of company are you dealing with, and what are its goals?

When entering into a contract with a services company, it’s important to understand the motivation, goals, and performance of that company. For example, you might want to consider if this property management company is a power player in the market or a Mom and Pop company whose ownership will change hands when they retire. Is the company planning to expand into different markets or regions? The property manager is a business, and you will need to understand the fundamentals of that business in your evaluation.

From: www.listenmoneymatters.com

Carnahan Property Management Services Woodland Hills,West Hills,Bell Canyon, Hidden Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys, North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, WestLake Village, Agoura, Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500