Are you thinking of hiring a property management company in Utah? Then you need to ask the right kind of questions. With the right questions, you stand a high chance of selecting an efficient, effective, and reputable property management company.
Here are 10 general questions to ask a property manager before hiring them.
1. What types of properties do you manage?
It is important to know that your future property manager will be able to give your properties the attention that they need, as well as be familiar with how to handle tasks associated with the property. The management of a duplex is substantially different from that of a larger complex, or from a condo association. The laws vary depending on the number of units in a complex – for instance, escrow accounts must be maintained differently for a larger complex than for a duplex.
2. How many rental properties do you manage?
You need to find your level of “just right.” A minimum of 80 units and a maximum of 600 rental units is ideal.
When there are too many real estate units, you can get lost in the shuffle. Alternatively, too few units can signal their inexperience. These are simply guidelines we recommend you look out for but are not definitive by any means.
3. Do you require renters to have renter’s insurance?
Renter’s insurance provides protection for your tenants and your property. It usually covers against perils such as vandalism, theft, and fire. You’ll want to find out if the property management company requires renter’s insurance when a tenant moves in.
4. What’s your average response time to owners and tenants?
You and your tenants deserve a reasonable response time. Period. If your tenants need to wait 3 weeks to get a reply from their property manager it’s highly unlikely they’ll stick around for a long time.
5. How do your tenants contact you?
There should be an effective two-way communication process in place between property managers and their tenants.
6. What methods do you use to market properties?
Does the property manager’s system include a proactive marketing strategy? In this day and age, marketing strategies should be more than a “for rent” sign on the street corner.
Your property manager should be advertising properties through a variety of channels. Steer clear of managers who still just place newspaper ads.
7. How do you collect rent from tenants?
Property managers should have a policy in place on how to rent collection is handled. Do they pick it up, or do tenants mail it? Perhaps the tenants can take it right to the bank? Every lease should outline exactly when the rent is due, the amount due, and any late fees associated with late payment. It should also specify after what point the tenant is considered in default of their lease terms, and when the eviction process can begin for nonpayment.
8. What are your pricing options?
An important aspect and consideration in having a property managed is cost. Every management company is different with its pricing structure but should be clearly outlined and never a random fee.
Specifically, you should ask to see if the company offers a flat rate or a percentage of the rental amount.
9. What services do you offer clients?
Managing a potential property comes with many responsibilities. From finding tenants and dealing with complaints, to initiating evictions. You want to hire a property management company that can handle multiple functions.
For instance, they should be able to administer in-depth background checks, conduct inspections, and provide top-notch maintenance.
10. Can you give a few references?
Past performance is often the best indicator of future performance. A good property manager will have a good number of references. You could also ask to see those for your exact type of property.
In addition, you should check their online reviews and look for any red flags.