Interview questions for property managers…Ideas? - Posted by Marc in Portland
Posted by Marc in Portland on February 05, 2003 at 24:06:10:
Rental Property Owners,
As experienced investors know, all property management companies suck; some just suck a little less. On that note, I am trying to develop a list of screening questions that folks might want to ask property management companies as part of an interview. Below is a list of possible questions. I would love to get the forum’s input to see if I am missing anything…I’m sure I haven’t thought of everything! Please let me know by posting here.
Marc Coan
I own a ___ -unit property in ___________. Would you be interested in managing it?
How long have you been in business?
How many buildings of the type and size of my property do you currently manage?
How many total units do you presently manage?
Do you manage any units near my property? If so, exactly where are they so I can drive by?
Have you or your staff been accredited or certified by the Institute of Real Estate Management or the National Association of Residential Property Managers?
If not, will you agree in writing to abide by IREM and NARPM Codes of Ethics (http://www.irem.org/i02_about/html/CPM_Code.html and National Association of Residential Property Managers (NARPM®))?
What special training do your professional off-site managers receive?
What publications do you and your agents subscribe to and read?
What local or regional property management related organizations do you belong to?
What fee do you charge for finding and installing a new tenant? If a tenant moves out within a few months, will you waive it for the next tenant? If you ever have to evict a tenant; will you waive the lease-up fee?
What percentage of gross income do you charge for monthly management?
What is included with the monthly management fee?
Is advertising included in the management fee?
For moneys held in your client trust account, is interest paid? To whom does the interest accrue, me or you?
Would you consider a net/net lease, whereby you lease the property, subleasing to the tenants, pay the operating expenses, and just pay me a flat fee? If so, what rate would you propose?
On what schedule will you or your off-site staff visit and inspect the property?
Would you use an on-site manager for this property? If so, will you pay their salary, taxes, and insurance, or will I? How much?
What will be the on-site manager?s (if any) duties? Will he or she do turnover cleaning and repair?
Describe any training you offer the on-site manager.
Can I interview and approve of the on-site manager? Can I determine if they are retained?
Which property management software do you use?
Does your software allow you to project an annual operating budget for your properties, and then compare the actual performance to the budget?
Please submit samples of the types of monthly and quarterly reports it generates.
Will you produce my IRS Schedule E or Form 8825 at the end of the year?
What do you typically do to prepare a unit for re-renting (turnover)?
How much time do you take to prepare a unit for re-rent? Would you commit to that in writing?
Do you have your own repair staff? If so, what are their qualifications, and what types of work are they NOT qualified to do (for which you have to hire outside contractors)?
If you use outside contractors for maintenance and repair, which ones?
What is the hourly rate charged for work performed by your repair staff? Contractors?
Can we pay a flat fee for turnover expenses, such as cleaning, carpet cleaning, and painting, instead of an hourly rate?
When outside maintenance and cleaning contractors are used, will you charge us an ?override? on their bills? If so, how much will this be?
Do you inspect the work of all contractors and repair persons, and not pay them until they get it right?
Over what amount do you typically seek permission of the owner before having repairs or done?
Who will handle the landscaping and lawn maintenance for this property?
The building?s current rents are $______ for a ___ bedroom unit that?s ____ square feet. What do you feel is the current market rent for my units in this submarket or market area? How do you know that?
If I wanted you to raise it to the market rent, how soon and on what schedule should we raise them?
Should I accept Section 8 tenants? If so, explain your experiences working with the local housing authority and Section 8 tenants.
If I accept Section 8 tenants, what would you suggest the rents should be for those tenants?
What security deposit do you propose charging? Will this be collected all up-front, or will you allow the tenants to pay it over time?
Do you propose collecting a ?last month?s? rent? Will this be collected all up-front, or will you allow the tenants to pay it over time?
If I have a vacancy, how long do you think it will take to re-rent it at the current rent? Market rent?
Would you want to offer concessions to fill a vacancy in the current market? What type, and how much will they cost?
What is the longest period of vacancy you’ve experienced in the last year?
What hours will your staff be available to show vacancies to prospective tenants?
What is your typical advertising budget for filling a vacancy in the current market?
Where would you advertise vacancies for my property?
Do you have an Internet site, or advertise vacancies on an Internet site? If so, do you provide pictures and other information? Please provide the Web address.
Please submit a sample classified advertisement you would use to promote my property.
If a tenant must be evicted, will you handle it yourselves, or will you contract it out? To whom?
If a tenant must be evicted, what charge will I pay?
How many evictions have you performed in the last year?
What do you do to recover costs and fees and unpaid rent from evicted tenants? Collection agency? Small claims court? Who pays the fees for these?
Do you recommend month-to-month tenancies for this property or leases?
Do you allow tenants to pay their rent by automatic withdrawal and/or credit card? If so, what are the fees for this service, and who pays them?
Would you recommend offering tenants a discount for early payment of rent?
What late fee will be charged to the tenants? Is that credited to me or you?
What is your procedure if a tenant?s rent check is returned as unpaid?
What is the returned check charge? Is that credited to me or you?
What sorts of things do you do to screen a tenant?
How many previous landlords do you check with when screening a tenant?
Who performs the screening service?
What is the tenant screening charge charged to me? The prospective tenant?
Do you visit a tenant?s existing residence to see what their lifestyle is like?
Please submit a copy of your tenant screening standards, application, rental agreement, and move-in/move-out checklist.
Please submit a copy of your standard Property Management Agreement.
How much notice to you require for terminating the Property Management Agreement?
Do you require us to list the property with your company when it comes time to sell?
What are some of the reasons we should use your company?
Describe the weaknesses at your company that you hope to improve.
Is it possible for me to contact your company after hours?
Will you give me your cell phone number?
What are your normal business hours for tenants to contact you?
What if they need to reach you after hours?
Do you have an email address?
If I write to you by email, how soon will it be answered?
Please list three of your current clients who have buildings like mine. [Owner will ask the customers the following questions:
a) Have you ever had a problem with the company and if so, what kind?
b) What do you particularly like about this company?
c) What is the worst thing I’d find if I choose to have the company manage my properties?
d) Do you feel you can recommend this company to me?]