Things to Consider When Interviewing Property Management Companies

Lately, a bunch of people have been asking about what to look for when picking a property manager. Its a great question, and I’ll try to cover a few important points. I’m going to ask more questions then I’ll answer, but these are questions you’ll want to keep in mind when interviewing managers.

1 - Cost: Managers generally charge a monthly fee to watch and maintain your property. Those fees can range from a minimum $800 to $11-$13 "per door" charge. Obviously, you should look the company that charges less in comparison to the amount of services they provide.

2 - Communication: For me, communication with a manager is of the utmost importance. I need someone who uses email, and is responsive to both the telephone and email. If I don’t get a response back in a timely manner, it is time to walk. In addition, you need someone who can deal with you and your idiosyncrasies, some of us are needier then others. You want to let companies know up front where you stand, and make sure they’re willing to be flexible for you.

3 - Termination of your Agreement: In the event that your “relationship” does not work out, you want to know up front what exactly it will take to terminate your agreement. Is there a charge for breaking your contract? Penalties?

4 - Repairs and Maintenance: Does the company have their own maintenance crew, or do they contract out to a handyman? How much do they bill out at? Can they handle all kinds of repairs? What happens if they can’t do something? Do they have other contractors that they work with?

In addition, you probably want to have a maximum that the company can spend without contacting you. Generally, I will allow my managers to do what they need to as long as it is for something under $500. I must confirm any expenses over that. If you are a bit more of a control person, you can also request invoices/receipts for expenses.

5 - Monthly Statements: Does the company send out monthly or quarterly statements. I wouldn’t deal with anyone that does not provide monthly income/expense statements.


6 - Evictions: How does the company handle evictions? What are the costs to evict?

7 - Yard Work: How much do they bill yard work out at? Landscaping? Do they handle snow removal? Mow lawns? How much does each cost?


8 - Reserves: What kind of reserve does the company require? The reserves are used in case anything comes up. Most managers will require a certain amount.

9 - Accounting: When will the manager mail your financials to you? Beginning of the month? State laws usually dictate accounting rules for managers, but you want to know all of this up front.

The bottom line is you want to find a property management company that you feel comfortable with. Look for a company that is going to listen to your needs and respond to those needs efficiently. This an important decision for your property, so make sure you make an informed and intelligent choice.