How to Identify a Good Property ManagerMar 26, 2022
Before hiring a property manager, there are certain issues that should be reviewed with them:
Setting the Rental Rate
• How do they determine their rental rates?
It's important for a property manager to have knowledge of the local market. It should also be able to perform solid research on the 10-20 most recently-rented comparables to successfully maximize rent.
• How often do they raise rents?
Rental rate surveys should be performed at least annually, and more frequently if there are vacancies or lease renewals.
• Do they put contractual escalators in the lease?
Contractual rent escalators allow the rents to be raised without the need to negotiate, offer an explanation, or give notice.
• How is rent collected?
• How do they deal with bounced checks?
After the first bounced check, tenants should be prohibited from writing personal checks until at least 6 months of good payment history has been established. Additionally, there should be a provision in the rental agreement that says tenants agree to pay the maximum the law allows for all returned checks.
• How do they deal with delinquent payments?
• What is their current rate of delinquency?
A good property manager should not allow things to get out of hand.
• When is rent due? Is there a grace period, if so how long?
• How much is the late fee?
• How do they handle evictions?
The higher the number, the less confidence you should have in the screening process of the property manager.
• How quickly do they usually get repossession of the property when an eviction takes place?
Property managers should be able to contain and eliminate problems as quickly as possible.
• Do they provide eviction insurance?
This is a small monthly fee that ensures that the management company will pay for all attorney and court costs associated with evicting a tenant they placed. It is not a widely offered service, but it is a valuable service that speaks to the property management companies’ confidence in their screening process.
Don't miss a beat!
New moves, motivation, and classes delivered to your inbox.
We hate SPAM. We will never sell your information, for any reason.