How to Interview a Property Manager
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- Amos Roland Holt
- 8 years ago
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1 How to Interview a Property Manager Dear Rental Property Owner / Professional Investor ~ Congratulations on your decision to hire a professional property manager. You are making the right decision one that will save you money and headaches over the long run. It can be confusing to compare property management companies and to understand how to choose the best fit for your needs. I d like to make that a little bit easier for you! This interview template is designed to help you interview each company consistently, document their responses, and compare apples to apples when you make your final decision. In the end it is important to choose a reputable company, with a proven track record, that you trust and have good rapport with, and that you can afford. You should interview 4 or 5 companies prior to making your decision. We welcome the opportunity to interview with you ourselves. Please contact us at if you d like to hear what we have to say. Proud to be a member of I wish you the best of success in finding the perfect property management company for you! Kimberly Ayers - Realtor Broker Professional Property Manager kim@kimberlyayers.com National Association of Residential Property Managers
2 Know What YOU Want Before you begin your property management company search, take some time to understand your own needs. 1. What are your long term goals for your rental property? 2. What is the current state of your rental property? (condition, location, occupancy, cash flow) 3. What do you like / dislike about your current property manager or about managing the property yourself? 4. Do you want a property manager to take care of everything or do you just want help with leasing your rental property? 5. Property management is a relational business. Make a list of character traits that are important to you. 6. How much can you afford to pay a property manager?
3 Company Information Company Name & Location: Phone Number: Spoke with: Website Address: Average Interview Score: Additional Comments: Phone Interview Notes Note: When grading responses, 1= lowest score and 5 = highest score 1) How long have you been in the property management business? Property management is a sideline business Lack of experience 2) What kind of properties do you manage? Too diversified Lack of experience with your type of rental property (e.g. multi-family or Section 8)
4 3) How many properties do you currently manage? Extremely large portfolio, could mean company is stretched to provide service Extremely small may indicate lack of experience or staff 4) Do you have a real estate broker s or property management license? Not able to pass test required for license Not an educated professional 5) Do you participate in and have certifications from any industry trade associations? (e.g. NARPM / IREM) Lack of interest in professional growth Feels they know everything already (laws and best practices are always changing) 6) What do you know about Fair Housing and Arizona Landlord / Tenant Laws? Discriminatory language Lack of knowledge of laws governing the property management industry
5 7) What is your average length of tenancy? Short tenancies may indicate tenant retention issues Lack of service attitude toward tenants 8) How do you fill market vacancies? No Internet Marketing Old-school tactics classified ads and flyers only Lack of a network, like the ARMLS and other real estate professionals 9) How do you protect my property when it is vacant? Property access is not tracked Unlicensed people are able to access property 10) How do you establish a rent rate? No access to rent comparisons Allows you to establish your own rent rate without validation 11) How do you collect deposits / rent and distribute funds to me each month? Lack of access to statements Limited rent collection methods
6 12) How often do you communicate with property owners? Discourages regular communication Limited availability / accessibility 13) What kind of reserve do you require? Unreasonable reserve amount Vague about how reserve is handled 14) How are maintenance & repairs handled? In-House vs. Contract Repair Authorization process at what $$ amount will you become involved? Lack of access to invoices / receipts 15) What are your fees? Up-front Fee? Monthly Percentage? Lease-up Fee? Additional fees (e.g. administrative / listing) Large up-front fee Lots of additional fees, not included in regular monthly percentage
7 16) Do you have a guarantee? What happens if I am not satisfied with your services? Contract termination fees and penalties Understanding Property Management Company Fees Most property management companies charge a monthly fee to watch and maintain your property. This fee is generally between 5% and 20% of the monthly rent. Desert Masters Realty charges 10% monthly management fee. Additional fees: Up-front fee at signing. Desert Masters Realty does not charge an up-front fee. We do not get paid until your property is rented. Lease- renewal fee to fill each vacancy. Desert Masters Realty charges a flat fee of $ for lease renewals. Administrative fees to cover travel, postage, advertising, etc. Desert Masters Realty charges the tenants a monthly administrative fee. The fee is calculated at 1.5% of the monthly rent. This fee covers the cost tenant relations, taxes, repairs and maintenance, HOA issues. Owners are charged $1.00 monthly admin fee to cover misc. bank fees. Listing Fee Desert Masters Realty charges a flat fee of $ to list a property. Desert In-Depth Masters Articles Realty About Property Management E. Stacey Fees: Rd. Queen Creek, AZ Desert MastersRealty.com Property Management Fees (Part 1) ManageMyProperty.com
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