Aug 5, 2024
When it comes to managing your property, choosing the right Property Manager is crucial. As a landlord, your investment is more than just a financial asset — it's a cornerstone of your future. But with so many property management companies around, how do you ensure you're making the best choice? Here are the top questions you should ask a property manager before you hire them to ensure you’re partnering with a professional who will protect and enhance your investment.
1. What Experience do you have managing properties in the area?
Experience is key when it comes to Property Management, you want a property manager who knows the local market, understands the unique challenges and opportunities in your region, and has a proven track record of managing properties like yours. Ask for further specifics: How long have they been in business? What types of properties do they manage? What is their client retention rate?
2. What is your Tenant Screening process?
One of the most critical aspects of Property Management is finding reliable tenants. Ask your potential PM about their tenant screening process. What criteria do they use to select their tenants? How do they handle background checks, credit history, and references? A thorough screening process helps protect your property and ensures steady rental income.
3. How do you Market your properties?
There are many ways to sell your rental property today. The efficiency of a marketing strategy plays a role in how many applicants it attracts. Hire property managers who have experience in creating successful marketing campaigns and understands the local market and how to leverage the various media channels available.
4. How do you determine a Property’s rental price?
Determining the rental price for a property involves several steps and considerations such as a market analysis of the local market and comparable properties in the area, current and recent listings. They assess the property's location, size, condition, and unique features, such as parking or modern amenities, to gauge its value. Supply and demand, seasonal trends, and vacancy rates can also influence rental pricing. Legal requirements, such as compliance with the Residential Tenancies Act and Healthy Homes Standards, play a role insetting a fair and lawful price. Additionally, broader economic factors, including inflation and interest rates, are factored in to ensure the rent is competitive yet meets the property owner’s financial goals.
5. What's your Tenant Screening process?
Even if you invest a significant amount of money in a rental property, its success can only be measured by the tenants. Hence, finding high-quality tenants is crucial. You need renters who pay their rent on time, maintain the property, and get along well with neighbours. You want companies that complete detailed background checks, verifying the applicant’s rental history, employment status, and income to ensure they have the financial capacity to meet rent obligations. In addition to that run criminal checks, credit checks to assess their creditworthiness and review references from previous landlords for insights into their behavior as tenants. Additionally, we perform criminal background checks to ensure the safety and security of your property and community. So before you strike a relationship with a property management firm, you want to confirm the techniques they use to vet and deem tenants suitable for your property.
6. What are your Fees, and what Services are included?
Transparency in fees is important. Ask for a detailed breakdown of the property management fees and what services are included. Are there any additional charges for specific services, such as tenant placement or maintenance coordination? Remember although initially you might want to save money and do the Property Management yourself, a professional and experienced PM Company with their expertise will save you time and money in the long run
7. Are You Insured?
Confirm if the property company has an active insurance cover. A company that's insured shows that it cares for its clients. Should any mishaps occur, the client, tenants, and property may be indemnified.
8. How do you collect rent or rent in arrears, and what is your Financial Reporting process?
Efficient rent collection and clear financial reporting are vital for maintaining cash flow and keeping track of your property’s performance. Ask about their rent collection process—how do they ensure timely payments? What happens if a tenant is late? Also, inquire about the financial reports they provide. Regular, detailed reports will give you a clear picture of your property's financial health.
9. What is your approach to Maintenance and Repairs?
Maintenance can be a major headache for landlords, so it’s important to know how your property manager will handle this. Ask about their process for routine maintenance and emergency repairs. Do they have a network of trusted local contractors in the local area? How quickly do they respond to tenant requests? Clear communication and prompt service are essential for keeping tenants happy and protecting your investment.
10. How long do your Properties stay vacant? What's the average length of a Tenancy?
The average vacancy period should be as low as possible, especially in today's market. Any period of time less than two weeks is an ideal situation. On the other hand, if the vacancy interval lasts longer than a month, it may indicate that the management company is having difficulty advertising properties. It might also mean that the company’s overall reputation is poor.
11. What Percentage of your Leases are renewed?
A low tenant turnover or high lease renewal rate is a direct sign of the company's competence. This shows that the tenants are satisfied with the services they receive, and with the management of the property in general.
12. How do you communicate with landlords and tenants?
Effective communication is crucial for addressing issues promptly, so it’s important to know their preferred communication methods and frequency. Good tenant relations are key to reducing turnover and maintaining a steady income stream. Ask your property manager how they handle tenant communication, disputes, and lease enforcement. What steps do they take to ensure tenant satisfaction? How do they handle lease violations or evictions? A proactive approach to tenant relations can save you time and money in the long run.
13. What is your process for handling tenant disputes or evictions ?
Knowing how they manage conflicts and enforce lease agreements helps landlords gauge their approach to difficult situations. A professional PM should follow a strict, legally compliant process, starting with issuing the appropriate notices as required by New Zealand’s Residential Tenancies Act. They should keep property owners informed at every step, ensuring transparency and that all actions are in the best interest of protecting the property and minimizing financial loss.
14. What if I want to end the Contract?
A real estate investor and property manager relationship is ruled by a mutually-binding contract. As such, before you can sign a contract to allow them to take over your property's operations, it’s always recommended that you fully understand your options. Read through the contract carefully, and ask about the policies in place if you want to cancel a contract, what fees are involved (if any), and so on.
15. Can you provide References from other Landlords?
Finally, ask for references from other landlords they have worked with. Speaking directly with current or past clients can give you valuable insights into their experiences and the property manager’s effectiveness.
If you’re a landlord in Whangarei or Northland looking for a property management partner you can trust, don’t hesitate to reach out to us. I-Rentals are your locally owned professional Property Management Company in Whangarei. We’re here to answer all your questions and help you make the most of your investment. Give us a call today!
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