Inspecting your property manager should be more meticulous than buying a new car. Here are 5 top questions you should be asking your management company before handing over keys.
Questions For Your Property Manager – Hiring Property Manager Tips
How will you market my home?
Marketing is a crucial beginning task your property manager should be working on. Installing a sign, taking professional photos, placing MLS listing, and advertising online are all critical in creating exposure for your rental. Further, you should search for previous homes they have listed. Are ad-words enticing and inviting? Are the pictures bright, open and professional? The presentation of the marketing is critical to increasing the visibility and likeliness of having a potential applicant see the home. Without proper marketing, your property manager may never get the chance to receive the initial call or email from the best applicants.
What is the process for applications/finding new tenants?
Every company/person is different in their policies and procedures. Does the owner or property manager approve applicants? What are the minimum requirements for processing? (Access Access Inc is no felonies, no past evictions/judgement, and 2.5x the rent.). Do you run a full credit/background check? How is my home shown to prospective tenants? These are all great questions to ask in most important step in property management. It should be in the best interest of both the owner and property manager to find a great tenant. Finding a great tenant is the cornerstone to managing your investment well. Here at Access Asset Inc., we pride ourselves in having dedicated showing agents opening doors and answering questions for applicants, with a knack for following up to keep their interest. Further, a full background/credit check is completed with 5 years verifiable residence history. To complete the process, this information is emailed to our owners to approve/deny the application based on a 0%-100% score. Our property managers understand the risks of renting your home as well, and will talk to you about other options in reducing risk when placing a tenant into your home.
How do you handle maintenance?
A hot button issue. Wear and tear of the home usually increases when renting your home, it is likely you will run into problems while your home is occupied. Here at Access Asset Inc. we receive no money or referral fees from the vendors we use. We view our vendors simply as high-quality tool in our possession, our relationship with our vendors extend to work provided with an expectation to be a priority when we clients need them. Whether it is plumbers, electricians, handymen, or HVAC techs we have the tools to acquire quick response, good service and fair pricing for our owners. Ask your property manager if they have an on-site handyman or affiliated companies. Do they require a tier system or a maximum charge before contacting you? These are all basic questions and concerns you should have regarding maintenance of your property.
How do you handle your daily operations and points of contact?
Often overlooked, but very important is to understand how your property management company handles tenant and owner calls. Will you have a dedicated property manager, or is there support staff to handle calls at a centralized office? Is the same person you met and talked with the same person who will be overseeing your home? While a centralized office does work for task management, many owners prefer direct contact with one source that knows all things about their property. As the property management industry has seen its ups and downs, many companies were charging 7-9% of rent have moved to a flat rate system. Thus creating the need to manage more homes with systems in place to maximize efficiency. In creating a level expectation for services, it is very important to understand how your relationship with the company is handled.
How do you handle accounting?
Last but definitely not least is the overall accounting of your property. How do you know the management company isn’t up-charging invoices? Are your security deposits being held appropriately? First you should always have accurate record keeping beginning with statements detailing all money in and out. Further, you should expect to use a company with systems in place so you can view your records online. There should be uploaded invoices from vendors so you can compare cost of repairs vs costs charged. Another oversight is tax withholding, for certain states it is mandatory that tax is withheld, and be certain you have the correct forms for any exemptions (California, CA590 form). Another question to ask is what barriers/systems are in place for fraud. Does a single person only have access to accounting/overview? Be sure there are multiple safeguards in place to ensure no fraudulent activity occurs.
We are a full service property management company serving the Inland Empire, Orange County, Riverside County, cities include: Lake Elsinore Corona, Murrieta, Menifee, Temecula, Hemet, Perris, Wildomar, Riverside, Anaheim, Santa Ana, Costa Mesa
