I am often asked what to look for when choosing a property manager. It’s a great question, and I’ll try to cover some important points. Although they can be expensive at times, they can also save you from a lot of the headaches that come with owning. I’m going to ask more questions than I answer, but these are questions you’ll want to keep in mind when interviewing managers.

one – Cost: Managers generally charge a monthly fee to monitor and maintain your property. Those fees can range from 5% or so to more than 20%. Obviously, you should look for a company that charges less and provides more services.

two – Communication: For me, communication with a manager is of utmost importance. I need someone who uses email and is responsive to both phone and email. If I don’t get an answer in time, it’s time to walk. Also, you need someone who can deal with you and your idiosyncrasies. Some of us are more needy than others. You want companies to know where you stand up front and make sure they are willing to be flexible with you.

3 – Termination of your Agreement: In the event that your “relationship” doesn’t work out, you want to know in advance what exactly it will take to terminate your agreement. Is there a charge for breaking your contract? Sanctions?

4 – Repairs and maintenance: Does the company have its own maintenance team or does it hire a maintenance staff? How much do they bill? Can they handle all kinds of repairs? What if they can’t do something? Do they have other contractors they work with?

Also, you probably want to have a maximum that the company can spend without contacting you. In general, I will let my managers do what they need as long as it is for less than $100. I must confirm any expenses above that.

If you are a bit more in control, you can also request invoices/receipts for expenses.

5 – Monthly account statements: Does the company send monthly or quarterly account statements? I would not deal with anyone who does not provide monthly income/expense statements.

6 – Evictions: How does the company handle evictions? What are the costs to avoid?

7 – Work in the garden: How much do they work in the invoice yard? landscaping? Do you handle snow removal? Mow grass? How much does each one cost?

8 – Bookings: What type of reservation does the company require? Reserves are used in case something comes up. Most managers will require a certain amount.

9 – Accounting: When will the manager mail your check? beginning of the month? State laws generally dictate accounting rules for managers, but you’ll want to know all of this up front. Tenant Deposits: How do you handle deposits? Do they come from or are they just bundled with all the other income in your account?

10 – Holidays: In fact, I have interviewed companies that will charge you half of a month’s rent to fill vacancies at their property. I quickly finished my interview with these people. There is no reason to pay this fee, as many managers do not need to charge it. You’ll need to fill your vacancies, so you’ll need some advertising done. . .

eleven – Advertising: Where do they advertise properties? Are signs for rent posted on the lawn of the property? Are they advertised in the newspaper? Online? There are quite a few effective places to advertise property for free online. Do they use these? Also, you want your property to be advertised effectively. Do you have the basic HTML skills to add images to your online rental ads? This makes a big difference, trust me.

12 – Division 8: Do they have experience dealing with section 8 properties/tenants? Do you know what such properties imply?

I also like to know how many properties they manage, how many managers work at the company, what specific areas they focus on, how long they’ve been in business, and other questions about their experience. This should be a good start to get you going.