If you've just bought a new rental property and you're now looking to hire a manager, such as those at Calibre Real Estate, to handle all the issues related to marketing, renting and maintaining that property, there are some important questions you must ask before you hire a property management firm. So to help make the process easier, here are the questions you should ask all prospective property managers.
Will Your Managers Show a Property Or Delegate That Task? -- This is an important question, because you don't want to hire a property management firm that doesn't know your property and its unique characteristics. Management firms that delegate showing your property to a third party will lack the personal investment that you want when you hire this type of company.
How Often Will You Inspect a Property? -- It's essential that any property management firm you hire have in place an inspection schedule. Whether you own an apartment complex, condo or a house that you rent, you must hire a property management firm that will ensure that the condition of your property remains at a high level. For example, if you're frequently out of town and you're renting a house, what happens if your property management firm doesn't inspect that house for six months? Your tenants could easily sublease your home to other people whom you have not vetted, and those people could cause damage to your rental property.
How Do You Vet Prospective Tenants? -- Finding the right tenant is the most important aspect of renting out your property, which is why you need to hire a management firm that has established a rigid set of standards regarding prospective renters. First, ask for the full checklist the management firm uses on their rental application. At minimum, a credit check should be included on the application as well as financial documents to back up the prospective tenant's ability to pay. Second, ask for the number of evictions that the property management firm has initiated. This number should be low, because high eviction rates is an indication that the vetting process isn't sufficiently rigorous.
How Do You Handle Repairs and Maintenance? -- Some property owners like to use their own contractors to handle all maintenance and repair issues. Other owners let the management firm use their own professionals to save themselves the hassle of finding someone reliable. But you must ask how the prospective property management firm handles their maintenance, especially if you are an owner who is hardly ever in the same city as the rental property you own. You must also determine the threshold at which the firm can approve a repair request without obtaining your permission, or whether you prefer that all maintenance requests require your approval.
Hi, my name is Molly. I have been a property owner since my grandma died when I was eighteen, and I inherited a rental property. Over the years, I have managed that property very successfully, and about ten years ago, I started adding to my collection. While I would definitely say that the investment property game is not a get-rich-quick scheme, it can make lucrative money. To help others who are interested in getting into the game, I have decided to start a blog. Here, I am going to share insider tips, experiences and ideas. Get comfortable and feel free to explore!