When deciding if a property management company is right for you, you’ll likely speak to a property manager about their services. These questions will help you determine which ones might be a good fit.
So, you’ve decided to hire a property manager.
Whether it’s because you no longer have the time to manage, you’ve acquired more properties, or you just want someone with a little more experience to handle your property, a property manager can likely help you with your problems.
Gone are the days where you’re forced to do your own maintenance, select your own tenants, and handle property accounting. Nowadays, there are hundreds of reputable property management companies to choose from that specialize in managing homes just like yours.
However, not every property management company is the same. With different prices, philosophies, and services, it can be difficult to determine which company is right for you.
To help you through that process, we’ve come up with a list of five questions you should always ask a property manager.
What kind of involvement do I have as an owner?
How often do you conduct inspections?
How long are your properties typically on the market?
How long will it take to make my home rent-ready?
How do you screen tenants?
The goal of these questions is to help you figure out which companies will best be able to serve you and take good care of your properties.
1. What kind of involvement do I have as an owner, and what decisions do I get to make?
Every management company operates differently. A property manager serves as the middle person between the landlord and the tenant. This relationship works best when the property manager is given the majority of the control.
If you’ve managed your own properties before, you might be hesitant to fully let go. However, micromanaging everything the property manager does can slow down the process.
For example, when a property management company first takes on your property, they’ll do a walkthrough of your home to inspect the exterior, the front and backyards, and all the rooms to see what aspects may need updates or repairs. As the owner, you have the final say on which updates are made since you will cover the costs.
Property managers will likely notify you about major and emergency repairs, but minor fixes usually aren't worth the time to consult with you.
2. How often do you conduct inspections?
Routine inspections are an essential part of good property management. This ensures that the property manager is monitoring the property and addressing any issues.
A property management company should inspect the property at least once a year, preferably every six months. They should have a checklist for items such as chipped paint, outdated water heaters, etc.
Annual inspections allow property managers to catch unreported maintenance issues or tenant-caused damage. It’s crucial to address these issues promptly, as letting a problem linger for just a couple of months can lead to significant damage.
Managers can also check for unauthorized pets or tenants in the home. If there is visible pet damage but no pet deposit was made, it can be noted.
Inspecting the home while it is occupied is also necessary. Tenants should be informed in advance, and ideally, someone should be present during the inspection. This gives tenants an opportunity to discuss any problems.
3. How long are your properties typically on the market?
Ask about the company’s vacancy rate. Property management companies should track vacancies, and if they don’t know this number, it could indicate a lack of organization.
Typically, a property should rent within 30 days of being listed. If many properties exceed this time, inquire why.
High vacancy rates could mean the properties are overpriced, perhaps due to the neighborhood or home features. An experienced company should accurately price the home, considering these factors.
It could also indicate poor advertising. Low-quality photos that don’t showcase the home effectively may hinder interest.
4. How long will it take to make my home rent-ready?
It’s essential to know how long it will take to prepare your home for the market. While you might expect a quick listing, certain factors influence this.
When a property manager takes on your home, they will evaluate needed updates and repairs. A typical make-ready process at Andren Homes takes around 7-10 days, depending on the property.
Older homes may require more updates than modern homes. If your home has outdated light fixtures, wallpaper, or peeling paint, it could take longer.
Although you may want to expedite the process, it’s best to follow their recommendations for updates, as they know what attracts tenants.
5. How do you screen tenants?
Property management companies typically have criteria for tenant screening. At Andren Homes, we check credit, criminal history, income, and rental references, which is standard practice.
A credit check is always necessary, and a score below 619 may impact the deposit. Applicants are generally required to earn at least 2-2.5 times the rent. Co-signer requirements may be higher.
Checking rental references, whether from a previous landlord or apartment complex, verifies payment history and tenant behavior.
Most companies will select tenants themselves to comply with Fair Housing laws. Even seemingly harmless preferences can be considered discriminatory, so leaving the selection to professionals is wise.
Property managers may choose tenants by either the "best qualified" or "first qualified" method. The former involves screening multiple applicants, while the latter selects the first qualified applicant. Both approaches have their pros and cons.
Final Thoughts
These five questions will help you find the right property management company and distinguish between an organized, experienced company and one that may not meet your needs.
At Andren Homes, we understand that finding the right property manager can be challenging. To simplify the process, check out our "4 Steps to Hiring a Santa Cruz Property Manager" article!
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Logan Andren
Logan Andren is the founder and CEO of Andren Homes Property Management. Since launching the company, Logan and his dedicated team have simplified the rental property experience for numerous Santa Cruz homeowners. Their mission is to enhance the lives of their clients and community, focusing on providing exceptional service and fostering lasting relationships. DRE #02002055
Get in touch with us:
✆ : (831) 291-5043
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