Deciding to hire a professional property management company to care for your investment property is a smart first step to a successful rental experience. The next step is choosing the right company. There are some important questions you should always ask a potential property manager before signing a management contract.
Today, we’re talking about those questions, and sharing some of the qualities that are necessary in an exceptional property manager in Santa Cruz area.
Discuss Management and Leasing Fees
One of the first questions most property owners ask is – how much will professional management cost? Many management companies list their fees online, but even if you know how their cost structure looks, you still want to have an open and transparent discussion about the expenses that will be associated with the management of your property. Ask about leasing or tenant placement fees, and find out if there are any additional fees you might not know about up front.
Ask About the Areas They Cover
You need to know where the company manages most properties. A good management company knows the local area well and is close enough to your property that they can get there in a hurry if there’s an emergency. Ask questions about the area to make sure the property manager really understands the tenants and the properties in your neighborhood.
Talk about Your Investment Plans
If you’re planning to buy additional rental properties and grow your investment portfolio, you’ll need a property manager who can give you good advice. Find out if the property manager has any recommendations and where the best opportunities for additional investment might be. Discuss your portfolio and the plans you have for your properties. A good property manager offers advice and insight.
Talk About Evictions
No one likes to think about evictions, but you need to know what your property manager’s plan is for removing tenants who aren’t paying rent or following the terms of the lease. The eviction process in California can be complicated, so you’ll need someone who understands the requirements and the courts. Remember, it’s a good idea to work with a property manager who knows how to evict, but you don’t want to choose a company with a high eviction rate. That might indicate that they don’t have a great screening process.
How Technology and Automation Can Help
You need a management company that utilizes technology. It supports efficiency and consistency. So, ask if the company is automated. Some questions you might ask include:
- Can their tenants pay rent on time through an online portal?
- Do you as the owner receive an ACH?
- When do you receive a statement?
- When do you receive money from the tenants?
Why Should You Work with Them?
Always ask property manager why you should work with them instead of other companies. Ask what sets them apart from their competition. You’ll also need to know how long they’ve been in business and whether there’s a lot of employee turnover. Ask who will be responsible for your property, and find out if you can meet that professional.
If you have any additional questions regarding the most common questions to ask a property management company, please contact us at Portola Property Management.