What are the five questions that you should ask a property management company when you’re screening them?
After all, you may be giving them all of your investment money. All of your retirement is tied up in this investment asset, or at least large portion of it, so you should be able to ask them some pretty direct, serious questions.
What rent ranges do you manage in and what areas do you manage in?
For example: if you are looking for a property that you own that rents for $3000 a month, and they only manage $1000 a month rentals, they may not be the best fit for you. Be sure what they manages fits your property.
What makes you different?
Why are you a different company than XYZ? Do they have a differentiator?
More importantly, do they know their differentiators?
What is your eviction rate?
The fact that you have occupied properties doesn’t tell me much. How many do you kick out in the back end and evict?
What is your average days on market for vacant properties?
If you have a vacant property, how long is it on the market for? Is it just three days or is it sixty-five days?
As an investor, you want to know that to forecast your cash flow.
Talk to referrals
Who are your referrals, and how can I speak with them? I want to know the good and the bad. I want to know about you.
Do you have any guarantees?
That’s a sixth one, but I threw it in. Are there any guarantees of what you do? Do they put their money where their mouth is?
That is a very important number. If it is high they may not be doing a thorough tenant screening. Check out our Empire by the Numbers for our statistics.
We do a pet guarantee. We do a twelve-month placement guarantee, and we do a love-us-or-leave-us guarantee. If you’re not a hundred percent satisfied, you can leave anytime, no strings attached. No cancellation fee. These are things you want to know. Find out more about our 3 point promise.
Make sure to ask about all these topics: rent range, areas covered, what makes them different, eviction rate, and average days on market? Request to speak to a few referrals and ask about any guarantees.
Steve Rozenberg with Empire Property Management and Realty Services