7 Crucial Questions to Ask a Property Management Company
Hiring a property manager for your rental property can prove to be one of the best decisions you make. Whether you’re a first-time investor or an established landlord, getting professional help can generate you more rental income than ever before.
That said, the interview process can be challenging if you don’t know what to look for in a reliable property management company.
Not all property managers are created equal. And when it comes to handling the day-to-day tasks of your properties, it’s crucial you make the right hiring decision.
That’s why today we’re going to take a look at the questions you should ask a Phoenix property management company.
What to Ask a Phoenix Property Management Company
1. How Many Rental Properties Do You Currently Manage?
It’s important to know how many rental properties they are currently responsible for. The last thing you want is for their property managers to be spread thin across too many rentals.
A property management company that manages too many rental properties may not provide the kind of customer service you deserve. And a property management company that manages too few rentals could prove inexperienced and cost you money.
It is suggested that the perfect balance is around 200-600 rentals. You should, however, take into consideration the size of their staff before making a final decision.
2. What Services Do You Offer Property Owners?
One of the most critical questions to ask a Phoenix property management company is what services they provide. After all, if you’re going to invest your hard-earned money in a property manager, it had better be worth it.
Some companies will provide minimal services for maximum monthly fees. You want to avoid this at all costs. And you can do so by asking about the things they will be responsible for while managing your rental.
Here are some of the top services you should look for in a high-quality property management company:
- Professional advertising of all vacancy properties
- Thorough tenant screening and placement
- Solid rent collection procedures and quick no-payment follow-ups
- Monthly and annual reporting of income/expenses
- Routine property inspections
- Eviction management, court representation, and knowledge of all landlord-tenant laws
- 24/7 maintenance and repair services
- Legally compliant lease drafting
Of course, this list is not exhaustive and your needs will differ depending on your individual situation. The key here is to make sure you’re getting enough services to justify the added monthly cost.
3. How Do You Determine Rent Rates?
A good property manager will provide a comparable market analysis of all available listings nearby that are similar to yours.
From there, they will be able to accurately price your rental to be competitive enough to get you the most rental income possible. However, they won’t demand too much rent and risk turning away high-quality tenants.
Based on things such as the local market, your rental size, the amenities you offer, and more, you should always expect to generate a positive cash flow. And the right property manager will do just that.
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4. Do You Provide Any Guarantees?
If you’re wondering what to ask Phoenix property management companies during the interview process, make sure you always include a question about guarantees.
Experienced property management companies can offer many types of guarantees, such as an eviction guarantee or tenant guarantee.
5. What is Your Rent Collection Process Like?
Whether you’re an accidental landlord or one trying to build a business, making money is the ultimate goal. And, the only way you make money as a landlord is to collect rent from your tenants.
One of the questions you should ask Phoenix property management companies you’re interviewing should be about their rent collection procedures.
While there are many ways to collect rent from tenants, the one answer you should be looking for is online rent collection.
Online rent collection is the most convenient for tenants, which reduces late or non-payments. It’s also the fastest way for you to get funds deposited into your account. Lastly, online payments are the most secure method for collecting money from tenants.
If your property management company offers tenants other ways to pay their rent, that’s okay. Just make sure there’s an online portal for those that are accustomed to paying everything online.
6. Do You Have a Website?
You might want to ask the property management company you’re considering if they have a website.
In addition to making online rent collection a cinch for tenants, a property management website has:
- A way to provide vital information to tenants that may affect them directly
- A property owner portal for monitoring the management of their rental property
- Resources that can help you build your rental property business into a success
- A tenant portal for making maintenance and repair requests
- An advertisement section for available properties (such as yours) for those looking to lease
If the property manager you want to work with can show you the company’s website, you are well on your way to making a good hiring decision.
7. How Do You Handle Maintenance and Repair Requests?
One of the top complaints tenants have is that there is no urgency when it comes to maintenance and repairs.
If you want to keep your tenants happy, you’re going to need a property manager dedicated to handling these requests right away. After all, happy tenants lead to more lease renewals.
Here’s what to look for in the answer your potential property manager gives you regarding maintenance and repairs:
- There are several ways for tenants to get in touch with them to request maintenance and repairs. This may include the online portal, email, phone calls, or even text.
- A reliable, professional, and affordable maintenance crew or insured contractor will handle all requests, no matter how minor.
- Requests will be coordinated with tenants to suit their scheduling needs to decrease disrupting your tenant’s lives.
- During routine inspections, all minor issues will be handled immediately to prevent more costly repairs in the future.
- Your tenants will receive ample information about who to contact in the case of an emergency.
- You will always be notified of major maintenance and repair issues.
- The property management company never profits off the maintenance and repairs services they provide tenants.
There’s a lot that goes into maintaining your investment property. And, while the tenants that lease from you are partially responsible for some things, you need to know anything beyond that will be taken care of.
In the end, hiring a property manager to help you with your rental properties can be daunting if you don’t know what to ask during the interview process. And if you don’t ask the right questions, you risk losing money and tenants due to poor service.
Before hiring the first company you talk to, make a list of questions you’d like to ask all Phoenix property management companies you plan to meet with. This way you can make an informed decision. But best of all, you can rest assured your property is well cared for, your tenants are happy, and you’re making money.
If you’re interested in having Brewer and Stratton manage an income property for you, contact us today. We can help with everything from tenant screening to property inspections and rent collection to maintenance and repairs. All you have to gain is more time and money to enjoy the investment you’ve made and the rental income you generate.