Instead of being an easy way to earn passive income, renting out a property can become a full-time job and a source of constant stress. If you want to enjoy your investment without having to deal with the hassle that comes with it, consider delegating the tasks related to your property and tenants to a property manager.
Property managers have a good grasp of the law, which is useful when facing legal issues with the tenants. Although hiring a property manager is an added cost, it will save you money in the long run.
They will follow up on the routine maintenance and scheduled repairs, making sure that everything is up to par, which entices tenants to stay longer. Moreover, the property manager will take care of the rent collection, trouble-making tenants, emergency repairs, and complaints.
However, before hiring a property manager, there are some important questions that you need to ask them. Read on to know the 6 most important questions to ask a property manager before hiring one.
What Kind Of Properties Do You Manage?
There are different specialties in the real estate market; therefore, potential property managers should be familiar with the tasks and responsibilities that come with your property.
Managing residential properties is completely different from managing commercial properties. Of course, the best-case scenario is finding a property manager that is experienced in managing different types of properties; however, your future property manager should at least specialize in managing the type of property you own.
How Do They Prepare Financial Reports?
Property managers are responsible for preparing detailed monthly and annual financial reports that highlight each and every financial transaction that took place during that period so that the landlord can keep track of their investment.
However, not all landlords are familiar with the financial terminology and equations. Ask the property managers you are interviewing to give you a sample of their reports to see if they are written in a detailed manner that you can read and comprehend.
What Kind Of Rental Management Tools Do They Use?
Most, if not all, successful property managers use rental management software. You need to ask potential candidates about the kind of rental management software they use to help them streamline their tasks.
As highlighted on this site, the best property managers in the booming Atlanta housing market are those that have successfully managed to utilize the right tech solutions. Have them explain how you, as a landlord, would benefit from these tools.
How Do They Determine The Rent?
Your future property manager should have the expertise to set a competitive price for your property based on the latest market data. The rent shouldn’t be much higher or lower than the market price to keep the tenants satisfied as you continue making a profit.
When you are interviewing potential candidates, make sure you ask them about their rent calculation strategy.
Are They Licensed?
In some states, acquiring a license or certificate in property management is obligatory. Being licensed or certified means that they have attended classes and acquired the knowledge they need to manage multiple properties successfully.
After interviewing the short-listed managers, rule out the ones that aren’t licensed or certified and narrow down your search to the licensed candidates.
What Type Of Property Are They Currently Managing And How Many?
If the property manager is in charge of many different units, they might not give your property the time and care you would be expecting. Also, the type of property they are currently managing is important because there are different laws that apply to residential and commercial units.
So, asking potential property managers about the type and number of units they are managing is crucial and will help you narrow down your search.
Conducting in-person interviews is important to accurately gauge the candidate’s experience. Hiring someone to be in charge of your investments and run your property for you is a decision that should be made wisely.
Take your time, ask the right questions, and trust your gut. Make sure the manager you choose is licensed, find out the type of properties they specialize in managing, and make sure they can successfully run yours.
Furthermore, do not hesitate to ask for samples of their financial reports to ensure that you fully understand their strategy so you can keep an eye on things. Hiring a professional property manager can save you time and stress, allowing you to enjoy the profit while having someone else do all the tedious work for you – it’s a win-win situation!