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Property managers play a very important role in the world of real estate investment. Not only do they manage and care for your investment properties, but they act as the go-between between you and your tenants to ensure that you have more time to focus on your life.
So, it is important that when you are interviewing for this role you ask the right questions. This way you can be confident that the person who is caring for your investments is the right one for the job.
To help you find the best candidate for the role, here are ten questions you should ask while interviewing a prospective property manager.
But first, if you want to open up funds in your property budget to hire a properly manager today, click the link below for a free strategy call to discuss the possibility of lowering your monthly mortgage payments.
How Long Have You Been in Property Management?
One of the first questions you should ask when interviewing a property manager is how long they have been in the business. Naturally, you are going to want someone who is experienced in property management keeping an eye on your investments because they will know how to tackle a variety of circumstances. However, you may not always want someone who is too experienced because their workflow may be more rigid and harder to adapt into your personal investment strategy.
What Types of Properties Have You Managed?
No two properties are the same. While a property manager may be incredibly experienced in managing single-family homes and duplexes, they may not have experience managing apartment buildings or commercial real estate investments. You are going to need a property manager who has experience with properties similar to yours so that you know they are going to be confident and prepared for the job.
Discover Residential Property Management With This Step By Step Guide
How Many Properties are You Currently Managing?
Some property managers work solely on individual portfolios, so once you hire them on their sole focus will be on your properties. However, others take on a large group of clients with significantly more properties and can only manage a few more than they are currently doing. Ideally, you want to find someone who can prioritise your properties and has the capacity to tackle the most or all of your portfolio so that you do not have to hire additional property managers who may have different styles.
Do Your Work Independently? Or Are You Part of a Team?
Are you hiring an individual property manager? Or by hiring a particular applicant are you also taking on their entire team? Depending on the needs of your portfolio, both are excellent options. However, you do not want to be signing on to pay an entire team of property managers if you were only expecting to hire one.
What is Your Workflow Like?
Does a property manager like to make daily or weekly stops by the properties they manage? Or do they prefer to schedule less frequent visits in order to remain available for any sudden concerns. Most tenants prefer property managers who are not always knocking on their door and interrupting their lives, however for some larger investments such as apartment complexes, it may be a good idea to always have a manager on site in the event of an emergency.
Which Hours Would You Be Available for Tenants?
Another key question you may want to ask a manager during an interview is the hours they intend to keep available to respond to tenant complaints. Some hands-on managers will keep a more limited schedule where they are very responsive, while others who let the tenants be, may opt for a more open schedule with fewer active checks.
Fortunately, if you are hiring a company, they will often have managers employed at all hours of the day so that your tenants never go unanswered.
How do You Manage Tenant Screenings?
Some investors may choose to leave tenant screenings to their property managers. If this is a strategy you plan to use, it is important to ask them how they manage their screenings and what questions they typically ask. You want to find a property manager whose screening procedures and questions align with both local laws and your personal tenant preferences. Just make sure they are not asking any discriminatory questions that can land both them and you in legal trouble.
What is Your System for Tenant Communications?
How do they plan to communicate with your tenants? Do they have a work phone that they will be able to call? Are they part of a larger office that the tenants have to work through? Perhaps they have an email line for tenant communications. Whatever the method, this question is to ensure that any potential hires are properly prepared to work with your tenants and respond to their needs in a timely manner.
If a Tenants Files a Complaint, What Do You Do?
No matter who you hire, it is essential that they have a reliable strategy to respond to tenant complaints. Ask the candidate about a few different scenarios. What would they do it the sink starts to leak? The AC cuts out in the middle of summer? Pests enter the unit? Each of these issues come with their own priorities and a good property manager will give different answers that address each one.
What Percentage of Your Tenants Renew Their Leases?
Finally, the last question you should ask is what percentage of the property manager’s tenants typically renew their leases. Tenant turnover happens, so do not expect one hundred per cent, but ideally you want a minimum of 65-70 per cent of tenants renewing their leases so that you cashflow can go uninterrupted. If a candidate has a lower rate, ask them why. Sometimes they may just be managing properties with higher turnover rates such as student housing.
Stick With the Professionals
Much like you should never settle for a below average property manager, you should never settle for a poor mortgage experience. That is why at LendCity we strive to provide a professional, hassle-free experience to all of our clients. To learn more or apply today, give us a call at 519-960-0370 or visit us online at LendCity.ca Alternatively, click the link below to book a free strategy call with our team today.