Questions to Ask your Rental Property Management Company

Why hire a rental property management company? Because doing it all yourself is the surest way to make your real estate investment experience a bitter one. You also have more time to find the next deal when someone takes care of the details for you. Hire a good property manager, but first, ask the following questions.

 1. How much is the fee? Fees vary from as low as 6% of gross rents for larger buildings to as high as 12% for single-family homes. Propertycare investor-focused business model charges a flat rate monthly management fee, low than industry percentage standards.  Be sure the fee is clearly stated and understood when you are shopping for property management.

 2. What other properties do they manage? It is best if they handle rental properties that are similar to yours. It is also helpful to drive by their other properties to see how they are maintained.

 3. Who will actually handle your property? Will your property be managed by one person or a team? Get the contact information for the person that will be your main point of contact.

 4. What costs extra? Is it extra for showings? Do evictions cost extra (beyond the legal fees)? Any other extras?

 5. How are management fees collected, and when? Will you be billed, or will it be deducted from your account directly? Monthly? Quarterly?

 6. What type of advertising does the company do to lease your property? How do they advertise the units, and what does it typically cost you?

 7. Cost and time to prepare units? What is the typical cleaning fee for a vacancy? How long will it usually be before it’s rented out again?

 8. What needs owner approval? What dollar amount requires your authorization, and is this negotiable?

 9. Hours of operation? What are their business hours, and who takes weekend calls?

 10. Accounting? What reports do they send? How often? How are accounts set up?

There are probably other questions you’ll have as well, based on your particular needs and the specific property. Ask everything upfront, and you’ll have fewer misunderstandings. With good rental property management, real estate investing is a lot less stressful.