As a Real Estate Investor or as someone who has inherited property and rents it out, sometimes you might be too busy to keep up with your investments and will find yourself in need of the services of a property management company. Picking the right company is vital because, after all, real estate of any kind is a financial asset that you’ll want to protect. Here are some questions property owners should consider asking when interviewing a prospective property management company.
General Company Questions
Believe it or not, these are probably the most critical questions property owners should be asking when hiring a property management firm. Although they are essential, these two questions serve as the gatekeepers that determine whether the property management company being interviewed makes it to the next phase.
- What types of properties do you manage?
- How long has your company been in business?
- Do you have a business license, are you insured, and can you provide proof?
If the interviewee provides an inadequate answer, then it’s best to terminate the interview and move on politely. Since this might put you both in an awkward situation, perhaps it would be better to have these questions as part of your job advertisement or application.
Specific Service-Related Questions
Next, you’ll want to delve into more specific questions about services and how the company would handle certain situations that may arise. These questions are an excellent way to determine the accuracy of answers 1-3 above.
- What property management services does your company offer, and do you have references? The more services the company offers, the more return you’ll get on your investment. References are an excellent way to determine the level of the services.
- How do you handle late rent and eviction situations? Giving a bad answer to these two questions should be a deal-breaker. If late rent or something else results in an eviction proceeding, you want a current company from all the legal angles.
You can ask other questions during the interview; however, these could be the most critical. Wrong answers could lead to your losing money. Don’t be afraid to ask tough questions.