We believe there are the four questions you should ask a property management company before hiring them.
Number 1: What is their tenant screening process? How do they screen them? Take me through what their process looks like. What's included? Is it a full criminal, credit, eviction, background check? Do they require proof of on time rent payments? Pay stubs? Do they look into their social media accounts? Do they call references? You really want to dig deep into how they do their tenant screening to be sure that you're finding a top quality tenant.
Number 2: what is the management fee? Do they charge a flat rate or a percentage of the monthly rate? Typically, eight to 12% is a common number you can expect to pay a professional property management company. They take care of everything, collect the rent, deal with all the phone calls and the maintenance issues. Be careful of those low-rate companies that charge a low-rate fee but then add additional charges on for every little thing.
Number 3: what happens when a tenant calls in with a maintenance issue? Do they have an in house maintenance team, or do they need to hire out for all repair issues? How do the tenants reach them? Do they mark up their maintenance or charge at cost? Are they going to nickel and dime you, or will they share the savings they receive from their vendor, value discounts? Is there a 24 hour line you can call and reach a live person? These are all important questions to ask to ask about repairs and maintenance.
And finally, number 4: what happens during an eviction? Not something you want to think about, but you should find out if your property management company is prepared to handle an eviction. They should be able to work with a local attorney and make sure that they can get the tenant out of the property. Find out what their experience is.
We believe these are the top four questions you should ask your property management company before hiring them. If you have any questions or would like to discuss our services please call us at (630)587-7400.