Best Questions to Ask a Property Manager Before Hiring
As a real estate investor, you should strive to work with the best property management company possible. This means searching extensively until you land the best property manager to manage the day-to-day operations of your rentals.
Keep in mind that the best real estate manager is not entirely defined by their property management portfolio, but rather, by how they apply their skills to ensure smooth operations.
Trying to find a propery manager in Regina takes attention to detail, research, experience, and intuition. We'll help make the job easier for you by outlining a few key questions to ask a property manager before signing with them.
1. Are you insured?
Confirm if the property management company has an active insurance cover. A company that's insured shows that it cares for its clients. Should any mishaps occur, the client, tenants, and property may be indemnified.
2. What if I want to end the contract?
A real estate investor and property manager relationship is ruled by a mutually-binding contract. As such, before you can sign a contract to allow them to take over your property's operations, it’s always recommended that you fully understand your options.
Read through the contract carefully, and ask about the policies in place if you want to cancel a contract, what fees are involved (if any), and so on.
3. How do you determine a property’s rental price?
The lower your rent price is, the higher your losses will be. Inversely, the higher the rental prices are, the higher the number of vacancies will be. The best way to avoid both scenarios is to ensure that you apply the right rent price on your property.
Confirm which factors the property management company uses to determine the best price for your rentals. A reputable property expert will know all the right techniques to use to pick a rent price.
4. How do you handle rent collection?
One of the main reasons to hire a property manager is to streamline your rent collection. After all, rent collection is the lifeblood of investment in rental property, so make sure they have efficient, convenient rental payment systems in place for tenants.
5. What kind of fee do you charge?
How does the company charge its property management fee? Is it a flat fee, or do they take a percentage of the rental income?
You should recognize that each option has its own set of benefits and drawbacks. Depending on the situation, it's beneficial to know which is best for you. Pick a provider with a reasonable pricing option that suits your needs.
6. Do you charge for miscellaneous fees?
There are a ton of operations involved in managing a rental property. As a result, property managers may charge extra fees for additional services in specific situations, like:
- Tenant replacement
- And so on.
As a result, you should read the contract carefully to learn about these fees, as well as make sure you agree with them.
7. What percentage of your leases are renewed?
A low tenant turnover or high lease renewal rate is a direct sign of the company's competence. This shows that the tenants are satisfied with the services they receive, and with the management of the property in general.
8. How long do your properties stay vacant? What's the average length of a tenancy?
The average vacancy period should be as low as possible, especially in today's market. Any period of time less than two weeks is an ideal situation.
On the other hand, if the vacancy interval lasts longer than a month, it may indicate that the management company is having difficulty advertising properties. It might also mean that the company’s overall reputation is poor.
9. Will I still pay the management fee if you don't collect rent or if my property is vacant?
Be cautious of property management firms that insist on earning a management fee even if they were unable to collect your rent in a particular month.
Several companies have adopted a system where they do not claim a fee if they don't collect rent due to vacancy or tenant disagreements. The ground rule should always be that they will only be compensated if you are compensated.
10. How do you market properties?
There are many ways to sell your rental property today. The efficiency of a marketing strategy plays a role in how many applicants it attracts, so hire property managers who have experience in creating successful marketing campaigns.
11. What's your tenant screening process?
Even if you invest a significant amount of money in a rentarl property, its success can only be measured by the tenants. Hence, finding high-quality tenants is crucial. You need renters who pay their rent on time, maintain the property, and get along well with neighbours.
So before you strike a relationship with a property management firm, you want to confirm:
• Which techniques do you use to vet potential tenants?
• How do you determine if a tenant is suitable for renting a property?
• How thorough is your background check?
If you want property management services that are both competent and affordable, consider Leenan Property Management. Our expert team manages rental properties in Regina.
We handle all aspects of property management, and we understand the long-term investment that rental properties represent, as well as the duty of providing clients with a safe place to call home. Get in touch with us today!