31 Questions to Ask When Interviewing Property Management Companies
Some property management companies are better at what they do than others, and some offer services that others don’t. The only way to determine whether a particular property management company is the right one to manage your rental property is to ask the right questions. Below, we’ve compiled a list of what to ask when interviewing property management companies, so you can find your perfect fit.
Searching for an experienced partner to manage your rental property? Palmetto State Properties is known for their ability to manage, market and maintain rental properties in the greater Charleston, SC area. Contact us today.
What to Ask When Interviewing Property Management Companies
In order to make this the most comprehensive list possible, we have broken down the questions into three categories. What the company is all about, what you might sign when working with the company, and how they operate.We understand the best outcome for all of these questions and work hard to provide you the best support and management for your properties possible. Always make sure when you interview a company with these questions that they are up to standard. Let’s dive in:
Company Profile Questions
Are you properly licensed to manage rental properties in the right state?
South Carolina, for example, requires a property management license or a real estate license to manage properties.
What property management services do you offer?
Ask about the specific services you want to delegate to a property manager, such as running background checks on potential tenants, doing property inspections, providing maintenance services, handling tenant complaints, and so on. Palmetto State Properties does all these and more. However, our experience and skill gives us an advantage over other companies. For example, we require a letter from an employer over a W2 statement, as a W2 only shows you once had the job. Our goal is always to protect our clients.
How long have you been managing rental properties?
You want to choose a property management company that has a few years of experience, not a few weeks or months. We’ve been around since 2009, so have a great foundation of experience.
How many rental properties are you currently managing?
You don’t want a property manager who is too busy to give your properties adequate attention, but you also don’t want one with so few clients that their level of experience must be questioned. An important related question is …
How many employees do you have?
If a property management company has two staff members handling 600 rental units, they may be stretched too thin to provide the level of service you expect. An experienced team of professionals running the company, like our team here, is also a must.
What types of rental properties do you manage?
Some property management companies handle only commercial properties, while others specialize in single-family homes or multi-family properties. Make sure the company you hire has experience managing the kinds of rental properties you own.
Who owns the company? Is it a franchise operation?
Some property owners prefer to work with privately owned property management companies because they tend to be more flexible and relationship oriented.
What professional organizations do you belong to?
Property management companies that belong to local realtors’ associations, the National Association of Residential Property Managers, or similar organizations tend to be serious about professional conduct.
What insurance do you carry?
At a minimum, property management companies should be covered for errors and omissions insurance and for general liability.
Have you ever been investigated for a violation of the Federal Fair Housing Act?
Any concerns you may have about a property management company having discriminatory rental practices should knock the candidate off your list.
Do you help to acquire tenants?
A property management company that can also find tenants is a huge bonus. For instance, when working with Palmetto State Properties, we offer listings on the Charleston Trident Area Multiple Listing Service (MLS). We will also work with Facebook, Instagram, and 40+ internet platforms, including Zillow, Trulia, Homes.com, Realtor.com, Apartments.com, Zumper.com, etc. Because of our connections to realtors in the area, we can fill vacancies with greater efficiency than most property owners.
Contract-Related Questions
Do you charge a fee for property owners who want to pull out of their contract with you?
It’s important to know what you’re getting into before you sign a contract.In contrast to other property management organizations, Palmetto State Properties does not charge fees for many services, including accounting and HOA communication.
Do you charge a markup on repairs and maintenance?
Look for a company that doesn’t make a profit on every maintenance task, or your own profits may suffer. Palmetto State Properties never marks up repairs and maintenance services, as we work with our clients to give the best possible service to their residents while protecting their profit.
Do you have a maintenance reserve requirement?
Make sure the maintenance reserve requirement is reasonable, for some companies this is higher for older buildings.
What are your pricing options?
Some property management companies charge a flat rate per month, while others charge a percentage of the total revenue from rents. Our leasing fee is less than industry standard at 30%, compared to a whopping 40-60% found elsewhere.
What miscellaneous fees do you charge?
Some companies charge fees for performing maintenance tasks, initiating evictions, and so on. Never sign on with a property management company until you know exactly what fees you may be charged.
Are there any fees when the property is vacant?
When the company charges a flat rate per month, there is no exception for vacant units. However, when the company charges a percentage of revenue from rents, there should be no charge for vacant units. If a company is charging for vacant units, make sure they are still providing services (i.e. inspections) while the property is vacant.
Operational Questions
There are plenty of questions that may occur to you regarding a property management company’s usual operating practices. Here are some to get you started:
- – How do you arrive at the optimum rent for each unit?
- – Do you require renters to carry renter’s insurance?
- – How much control do I have over the lease agreement?
- – When do you start the eviction process? (This should be determined by the lease terms.)
- – How do you ensure that I’m getting quality tenants?
- – What’s your average response time to questions or complaints from owners and tenants?
- – How often will you update me on the financial performance of my properties?
- – How long does the average tenant remain in the same unit?
- – How long is the typical vacancy in the properties you manage?
- – What percentage of rents do you collect each month?
- – What’s your lease renewal rate?
- – What are your property marketing methods?
- – What is the vacancy rate for the properties you manage?
Final Question
Be sure to ask for references. Then back that up by checking each candidate’s online reviews. Palmetto State Properties understands what it takes to run a property in a way that keeps your tenants happy without sacrificing your bottom line. We appreciate every one of our clients and will always work to make sure you’re satisfied with everything we have to offer.
Get in touch today to find out how we can help.
