Top Questions to Ask a Property Management Company Before You Decide to Hire
Hiring an Orlando property management company is an important decision. When your investment is in the hands of other people, you want to make sure that you have chosen the right group that will work with you. More often, when you hire one, you will be working together with them for an extended period. This is especially true if you’re wanting to hold onto your rental property as a long term investment.
There are plenty of Orlando property management companies, which could easily be confusing when it comes to picking the right one. The good news is you can determine whether or not a company is right for you by asking the right questions.
Here is a guide for the questions you need to ask starting from the basic ones to the more advanced topics that will lead you to make a well-informed decision:
Simple Questions to Ask Before You Hire
Let us start with the most basic questions to ask a property management company:
How many years of experience do you have in the real estate industry?
While it does not mean that you should completely avoid new or young companies, most people are much comfortable working with those that have been around for some years in the business. Because of their experience, they know the market inside and out. They may have dealt with different clients with unique needs so it will be easier for them to provide you with better advice regarding your investment.
How many properties do you manage?
This is an important question that the company should answer truthfully. A Central Florida property management firm with multiple managed assets in their portfolio is more attractive than those working with only a few properties. If the company oversees many clients, it means that the landlords find them trustworthy and so they prefer to work with them.
Be careful though; you do not want to assign your property to someone who already has too much on their plate. The key is to go for a firm that specializes in property management and not only an agent who does property management on the side. You also want to make sure that they have an adequate number of property managers for all the properties that they manage so they can take care of your assets without a hassle.
Is the owner of the company involved in the day to day property management side of the business?
Here’s an important question that can be easily missed if you’re not as familiar with the real estate industry. You’ll find many company owners are generally involved in the property sales side of the business while giving the property management side of the business to an employee or property manager to take care of. This is because the sales side of the business has higher income whereas the property management side of the business is more time intensive with lower income. As a result, the long-term upkeep of your home and tenants can suffer because the owner of the company is not personally involved and may not even know the issues surrounding your home.
On the other hand, a Central Florida property management company where the owner oversees the property management on a day to day basis can give you confidence that the owner is personally involved and looks after your best interest.
Questions Involving Money
After the basic questions, you should also ask the following to the candidates:
How much do you charge for your monthly management fee?
Of course, the Orlando property management company that you hire should meet your budget needs. You certainly do not want to pay too much, and at the same time, you should not be paying for cheap services. As the old adage goes, “You get what you pay for.”
How much will it cost to find a tenant?
This question is important if you are looking to have a tenant on your property. As a smart consumer, you should know that this cost can vary. You can compile the answers of the potential companies for price comparison, or you can make other arrangements. In addition to how much it will cost, you should know how long it typically takes for the property management company to find a tenant.
Does your company offer any type of rent guarantee?
When a company has tenants purchase rent guarantee insurance, it protects landlords against loss if the renter defaults. As the landlord, you will find that this risk-management product is beneficial for you because it helps builds trust if ever you encounter bad tenants and you never have to worry about missed rent payments.
Do you handle the repairs?
As the property owner, you are responsible for all the repairs required. However, the property manager that you hire may be willing to do this for you, which will allow you to save time and money. You can also ask a few follow up questions regarding: how repairs are handled, how much typical repair costs are, and how the property manager ensures that the repairs done on your home are done with excellence and meets existing housing codes and standards.
What other charges should I expect?
There are some Central Florida property management firms that charge serving notices, which refer to the information regarding rent increases, termination of a lease, notices of entry, and types of notice. Often, these companies will add more costs to their services.
There are also some companies that charge for service calls and cancellation release fees. You may want to talk to the firm about these possible charges. If you do not need these services, you should not be compelled to pay for them. You do not want to sign a contract with the promise of low monthly management fees only to be surprised with these additional fees that can easily add up over time.
Also ask the company about the collection of late fees, which can actually help you plan out your monthly finances. Some property managers will charge for late fees if you do not pay for their service at the right time. Ask about safety inspections as well, which is done before and after a renter moves out of the property. Some companies may not charge you with it, but if they do, you should be aware of this additional cost, so that you can include it in your budget.
Additional Questions to Ask Property Management Companies
Aside from the ones already listed above, here are more questions that the potential property manager should answer:
How do you market vacancies and make sure that you attract tenants? Learn about the types of vacancy marketing techniques the property manager uses, as well as the efficiency of such strategies.
How do you screen tenants? Don’t overlook this! It is important to know how the management company selects qualifying tenants. The method should be thorough and foolproof to ensure only deserving tenants enter your property.
How is rent collected? You are an investor, and it is only natural that you are concerned about your rental income. Find out about how the management firm plans to collect the rent and how they will submit it to you.
Without a doubt, you want the best out of all the Orlando property management companies, and you have come to the right place.
We will work on your behalf, to assist you in meeting your goals. We would love to hear from you.
Contact us today and experience the American Dream Homes difference!