Choosing the right property management company is one of the most important tasks you’ll have to do. At Heritage, we’re ready to answer any qustions you might have. We encourage our prospective clients to do a thorough interview. That way you should be able to decide if that particular property management company is worth their cost. Here are some questions you’ll want to keep in mind when interviewing managers.
- Cost: Some property management companies charge by the month, others work with long-term contracts. The fees can range from as low as 5% to 20%. Use your common sense to get the greatest value and take time to research their record.
- Communication: Communication is vital. If your current property management group doesn’t promptly respond, dump them. That’s their job. Get to know the people of the company, understand their habits and build a better relationship with them. That almost always guarantees more attentive service.
- Termination of your Agreement: In the event that you’re not satisfied , you want to know up front what exactly it will take to terminate your agreement. Is there a charge for breaking your contract? Penalties? Be sure to find out.
- Repairs and Maintenance: Does the company have their own maintenance crew, or do they contract out to a handyman? How much do they bill out at? Can they handle all kinds of repairs? What happens if they can’t do something? Do they have other contractors that they work with?
- Monthly Statements: Does your current property management group send out monthly or quarterly statements. Bookkeeping is important for a number of reasons, and though you might assume that they’ll automatically send you a paper statement, it isn’t always the case.
- Evictions: How does the company handle evictions? What are the costs to evict?
- Property Upkeep: Lawn and Maintenance of Commons: How much do they bill yard work out at? Landscaping? Do they handle snow removal? Mow lawns? How much does each cost?
- Reserves: What kind of reserve does the company require? The reserves are used in case anything comes up. Most managers will require a certain amount.
- Advertising: Where and how does your property management company advertise? To what target demographic? Are for-rent signs placed on the property’s lawn? Do they work with a marketing agency to get the best results possible, both for traditional and online marketing?
- Accounting: When will the manager mail your check to you? Beginning of the month? State laws usually dictate accounting rules for managers, but you wo want to know all of this up front. Tenant Deposits: How do they handle deposits? Are they co-mingled, or simply put together with all other income for your account?
- Section 8: Do they have experience dealing with section 8 properties and tenants? Do they know everything they should? Is that relevant to your property?
- Vacancies: Some property management companies will charge half a month’s rent to fill vacancies in your property. There is no reason to pay this fee, since many managers don’t need to charge it. You will need to fill your vacancies, so you will need some advertising done.
