Using a Property Management Company

If your rental property is more than an hour away from your residence, you should consider hiring a professional property management company to manage your property. You should also consider using a property management company if you are too busy to properly manage your property or if you do not want to bother with tenants and the complexities of property management.

If you have decided to use a professional property management company to manage your rental property, be sure to hire a competent company that provides the level of service that you desire. Below are some questions you should ask prospective property management companies.

Questions to Ask When Hiring a Property Management Company

1. In what types of properties do you specialize?
2. In what geographical areas do you manage properties?
3. Is there a broker license for your company?
4. What are all your fees and commissions?
5. What are your fees for leasing a property?
6. What services are included in your property management?
7. What accounting program do you use?
8. What is your tenant screening process?
9. How do you filter out potentially problem tenants?
10. How often do you inspect each property that you manage?
11. May I review a copy of the documents that you use, such as the rental application, lease agreement, tenant rules document, and move-in and move-out checklist?
12. What day of each month do you mail the monthly statement and rental proceeds?
13. Are the sub-contractors that you use for repairs licensed, insured, and bonded?
14. Are your employees covered by worker’s compensation insurance?
15. Do you have an emergency number for tenants to use?
16. How do you handle defaulting tenants?
17. Would you provide me some of your references?

Warning! Not hiring a knowledgeable, experienced, skilled, and service-oriented property management company can cost you money, time, and grief. Be sure to hire a competent property management company.