Interviewing Tips for Hiring a Property Manager for your Rental Properties

July 12, 2017

What is worse, a bad tenant or poor property manager? It depends, most likely a bad tenant results from property manager neglect. Are you considering buying rental properties? Are you looking to make a management shift but not sure of the questions to ask? Today we’ll be taking a look at a list of questions to ask potential property managers.

Many of you may be wondering if a property manager is worth the money. If you’re not convinced then self-manage until you’ve learned the ropes. We always encourage our clients to build in the management fee when acquiring rental properties in case you ever do decide to hire it out it won’t lower your expected returns.

Below is a list we’ve compiled and many of them we’ve been asked when investors interview us as property managers. Note that some of the questions may apply to multifamily versus single family residences.

Feel free to pick and choose which questions you’d like to use during your interviews.

1. What areas do you currently service?
2. Do you offer portfolio discounts if I hire you for more than one property?
3. What are your monthly management fees for non-section 8 properties? What about for section 8 properties?
4. What is your fee to lease the property?
5. Do you offer screening services (credit check, background, criminal, etc..) even if I don’t use you to place a tenant or manage the property?
6. How many buildings of the type and size of my property do you currently manage?
7. What is the mix of type of properties in your portfolio: Single-family, small multi-family, larger multi-family, retail, industrial, commercial?
8. How many times will you visit the property each year?
9. How many properties are assigned to each property manager?
10. What system do you have to track work requests, tenant calls, or repairs?
11. Has your firm been sued or been in arbitration with one of your owner/clients in the last 5 years? If so, please describe the situation and how it was resolved.
12. How many people in your company hold a state Property Manager’s License?
13. Will there be a specific point of contact/manager assigned to my property?
14.  Would you use an on-site manager for this property? If so, will you pay their salary, taxes and insurance, or will I?  How much?
15. What will be the on-site managers (if any) duties?  Will he or she do turnover cleaning and repairs?
16. Are there any up-front fees I am expected to pay at the beginning of our agreement?
17. What fee do you charge for finding and installing a new tenant? If a tenant moves out within a few months, will you waive it for the next tenant? If you ever have to evict a tenant; will you waive the lease-up fee? What if I find the tenant?
18. What is included with the monthly management fee?
19. Is advertising included in the management fee?
20. For moneys held in your client trust account, is interest paid? To whom does the interest accrue, me or you?
21. Will you produce my IRS Schedule E or Form 8825 at the end of the year?
22. What do you typically do to prepare a unit for re-renting (turnover)?
23. How much time do you typically do to prepare a unit for re-rent? Would you commit to that in writing?
24. Do you have your own repair staff? If so, what are their qualifications?  What types of work are they not qualified for (for which you have to hire outside contractors)?
25. If you use outside contractors for maintenance and repair, which ones?
26. Can we pay a flat fee for turnover expenses, such as cleaning, carpet cleaning, painting, etc. instead of an hourly rate?
27. When outside maintenance and cleaning contractors are used, will you charge us an “override” on their bills? If so, how much will this be?
28. Do you inspect the work of all contractors and repair person, and not pay them until they get it right?
29. Over what amount do you typically seek permission of the owner before having repairs done?
30. Who will handle the landscaping and lawn maintenance for this property?
31. Should I accept Section 8 tenants? If so, explain your experiences working with the local housing authority and Section 8 tenants.
32. If I accept Section 8 tenants, what would you suggest the rents should be for those tenants?
33. What security deposit do you propose charging?  Will this be collected all up front, or will you allow the tenants to pay it over time?
34. Do you propose collecting a “last month’s” rent?  Will this be collected all upfront, or will you allow the tenants to pay it over time?
35. If I have a vacancy, how long do you think it will take to re-rent it at the current rent?  Market rent?
36. Would you want to offer concessions to fill a vacancy in the current market?  What type and how much would they cost?
37. What is the longest period of vacancy you’ve experienced in the last year?
38. What hours will your staff be available to show vacancies to prospective tenants?
39. Do you have an internet site or advertise vacancies on an internet site?  If so, do you provide pictures and other information?  Please provide the web address.
40. If a tenant must be evicted, will you handle it yourselves or will you contract it out? To whom?
41. If a tenant must be evicted, what charge will I pay?
42. How many evictions have you performed in the last year?
43. What do you do to recover costs, fees and unpaid rent from evicted tenants?  Collection agency, small claims Court?  Who pays the fees for these?
44. Do you allow tenants to pay their rent by automatic withdrawal and/or credit card?  If so, what are the fees for this service and who pays them?
45. What late fee will be charged to the tenants? Is that credited to me or you?
46. What is your procedure if a tenant’s rent check is returned as unpaid?
47. What is the returned check charge?  Is that credited to me or yours?
48. Describe your tenant screening procedure and tenant screening qualifications.
49. Who performs the screening service, you or a third party agency?
50. What is the tenant screening charge? Who pays this charge, me, you or the prospective tenant?
51. How many previous landlords do you (or the screening agency) check with when screening a tenant?
52. For my review, please submit a copy of your tenant screening standards, application, rental agreement and move-in/move-out checklist.
53. Please submit a copy of your standard Property Management Agreement.
54. If I find something in the Property Management Agreement objectionable or wish it add to it, can we modify it to suit my needs?
55. How much notice do you require for terminating the Property Management Agreement?
56. Do you require us to list the property with your company when it comes time to sell?
57. What are your normal business hours?
58. Who should tenant’s contact after normal business hours?
59. Is there a number tenants can call for information after hours?  Is there an automated voice system allowing them to get info about a property?
60. Is it possible for me to contact your company after hours?
61. If I have a problem with an employee, what procedure should I follow?
62. Will you give me either your cell phone number or home number?
63. Please list three of your current clients who have buildings like mine.  Owner will ask the customers the following questions.
64. Have you ever had a problem with the company and if so, what kind?
65. What do you particularly like about this company?
66. What is the worst thing I’d find if I choose to have the company manage my properties?
67. Do you feel you can recommend this company to me?

Let us know if you enjoyed the list of questions by sending me a quick thank you to Jeremy.Kloter@OutFastRealty.com

For more information about property management in Tampa Bay contact:

Jeremy Kloter
COO – Asset Manager – Realtor
C: (813)610-0015
Jeremy.Kloter@OutFastRealty.com