Ten Key Questions to Screen Property Managers

Why hire rental property management?  Because doing it all yourself is the surest way to make your real estate investment experience a bitter one.   You also have more time to find the next deal when there is someone taking care of the details for you.   Hire a good property manager, but first ask the important questions.

Here are 10 key questions you should ask any potential property manager.

1. How much is the fee?  Fees vary around the country from as low as 4% of gross rents for larger buildings, to as high as 12% for single family homes.  Be sure the fee is clearly stated and understood.
2. What other properties do they manage?  It is best if they handle rental properties that are similar to yours and in your area/neighborhood.  It is also helpful to drive by their other properties they manage to see how they are maintained.
3. Who will actually handle your property?  It is best if one person handles your building all the time.  They should also have some experience.  Get their name.
4. What costs extra?  Is it extra for showings?  Do evictions cost extra (beyond the legal fees)? Is there an add-on fee for all service calls and repairs? Do they have charge fees for new tenant placement and lease renewals?  Any other extras?
5. How is the monthly property management fee collected and when?  Will you be billed, or will it be deducted from your account directly?  Monthly?  Quarterly?
6. What type of advertising and marketing will they do for vacancies?  How do they advertise the units and what does it typically cost you?
7. Cost and time to prepare units?  What is the typical cleaning/turn-over fee on a vacancy, and how long will it normally be before it’s rented out again?
8. What needs owner approval?  What dollar amount needs your authorization, and is this negotiable?
9. Hours of operation?  What are their business hours, and who takes weekend calls?
10. Accounting?  What reports do they send?  How often?  How are accounts set up?

There are definitely other questions you’ll have as well, based on your particular needs and the particular property.  Ask everything up front, and you’ll have fewer misunderstandings.

Besides these questions, get references and contact their previous and existing clients.  Also check

With good rental property management is key to your real estate investing success and a lot less stressful.

Bill Manassero is the founder/top dog at “The Old Dawg’s REI Network,” a blog, newsletter, and podcast for seniors and retirees, that teaches the art of real estate investing. His personal real estate investing goal, which will be chronicled at olddawgsreinetwork.com, is to own/control 1,000 units/doors in the next 6 years. Prior to that, Bill and his family lived in Haiti for 11 years as missionaries serving orphaned, abandoned and at-risk children.