Knowing in detail, what you’re signing up for when hiring a Property Manager is essential. Make sure you do your due diligence, ask questions and if something seems too good to be true, as the old adage goes, it probably is. Management Companies come in all sizes and all offer different experience levels, services, and pricing. Here are some of the most frequently asked questions that we’ve received, here at Solid Rock Realty.
What is the scope of services you offer to your clients?
Look for a property management company that keeps your interests in mind and one that will be there for you, to free up your time. They should be able to do it all for you including marketing, leasing, management, and even the ability to sell your property is important. Make sure that they can provide appropriate maintenance, conduct random property inspections, and administer in-depth background checks for tenant screening.
What are the management fees and/or pricing options when the property is being rented?
Some companies offer a flat fee for management and others charge a percent of the rent total. Others charge only a percent of actual rent collected which is beneficial to you since you only pay if they are getting paid. This popular fee structure helps motivate property managers to fill vacancies quickly and to reach for higher rents.
Are fees assessed when the property has no tenants?
This is a very important question to ask for multiple reasons. Many companies will offer flat rate pricing which sounds great… until your property is vacant and they still charge you a monthly fee for managing a vacant property. How motivated would they be to fill the vacancy if they are getting paid while the property is empty?
What miscellaneous or “hidden” fees could I be charged for the management of my property?
A low monthly management rate is not your only concern. Some companies have many extra fees that you don’t expect when signing up. If they offer low monthly fees, chances are they are making money elsewhere off of you or your tenants with miscellaneous fees.
Can I cancel my management contract? There’s nothing worse than getting caught in a contract that you can’t get out of. Find a property management company that will allow you out of a contract if you are unhappy
How is rent collected and disbursed to owner?
The days of paper checks are in the past. Transparency is the word of the day. Your management company should be able to offer direct deposit and accept online rent payments. Direct deposit and online portals offers an immediate access to your account which can save you time and money.
Do you conduct property inspections and, if you do, what charge is associated with them?
Regular inspections are a must. Your property is at risk if you don’t. Most will charge an extra fee for inspections and some are done by request only. Some companies include a certain number of yearly inspections as a part of your contract so your best bet is to find a manager that feels as strongly about keeping your investment in good condition as you and take advantage of those inspections.
Do you mark-up maintenance and repairs?
Another way some property management companies add to their profits are to mark-up repairs. Paying a mark-up on maintenance could greatly diminish your profits so make sure that a potential property management company doesn’t charge more than necessary for repairs.
How often will I get updates on my portfolio?
You should always be able to get updates, as often as you need them. Your portfolio is your business. Communication and transparency are key to the success of the relationship between Owner and Manager. Ideally, look for a company that offers full access to your portfolio, anytime, online through an Owner portal. A manager that doesn’t quickly return calls or emails and leaves an owner in the dark is a definite no, no…
At Solid Rock Realty, we are excited to speak to you and answer all your questions about Property Management! We look forward to hearing from you so contact us today!