Experience
One of the most important questions you can ask is how many years of experience do they have in the property management business? This is a question for the business as a whole as well as the individual employees. At Fox Management, we have over 50 years of combined property management experience and individually, our property managers have between five and nine years of experience in the business. That’s a good average. You should also ask how many properties they manage. That will give you a good indication of their presence in the community and how long they’ve been established.
Costs and Services
Ask about costs. A clear property management agreement should be presented to you as a sample and there should be costs outlined in that agreement. Ask that up front. You should also find out if they are a full service property management company. They might provide only property management or only rent ups. Find out if there is a division that handles maintenance. You’ll want to know if they can handle maintenance on your property and if they’ll be familiar with all aspects of your rental.
Communication
Discuss how the property manager will contact you and how you will be expected to contact them. At Fox, we’re very tech savvy but we also take phone calls and respond to emails. Our statements can be emailed or sent through the regular mail. We are always willing to answer your phone calls and meet with you at your property or make appointments in our office to discuss your investment.
Licensing
Are the property managers certified and licensed? This is important because you want to make sure they have a commitment to the industry and a presence locally. Find out if they go to NARPM conferences and take continuing education classes. This provides a property manager with all the updated information they need to effectively manage property. At Fox, we all have broker’s licenses or we’re in the process of getting those licenses and we also have property management certifications.
Screenings
Another good question to ask is how do they screen potential applicants? A thorough, written screening criteria has to be used when looking for an ideal tenant. You also want a property manager to do nationwide searches that include a credit check, reference check, employment verification and a criminal background check.
Company Structure
Find out what sorts of support staff are employed and what departments exist within the company. Here at Fox, we have a landscaping department, a maintenance department, a cleaning department, plumbers, leasing experts, property managers and also a receptionist. You’ll want to ask if there are any reserve requirements. Most management companies will ask you to keep a small savings with them. Here at Fox we ask for a $250 reserve. Find out if there is a cancellation policy as well. We ask for a one year commitment and if a client can’t keep that, we do have a small cancellation fee.
Rental Process
Always ask if they use a move in checklist. This will show you that the property manager has a solid procedure and is documenting the condition of your property. It protects your investment and allows you to legally charge a tenant for any damage that’s beyond normal wear and tear.
Ask about advertising and how they attract tenants. If a property manager can get your home rented in two weeks - which is our average this summer - your vacancy is minimized and your cash flow is maximized.
Ask how often they will visit the property. A manager can find a running toilet, notice a leak or some dry rot and find unauthorized occupants and pets. It’s really important to protect your property by going for regular inspections.
Selling
Will they be able to help you sell? Everyone has an exit strategy. It might not be this year, but maybe 10 years from now you’ll want to sell your home. At Fox, we have a realty group which our clients find beneficial because we already have that relationship in place. Sales go smoothly because we’re so familiar with property.
These are some of the things you should ask your potential property manager. If you have any questions, contact us at Fox Management.