Best questions to ask a potential new property manager

We are in process of getting a new property. We have a current property manager for our current properties, but are considering going trying a new one for this new property.

What are your best questions to ask a new property manager?

 

Here are questions I keep on file that I have used and would expect to be asked by any serious owner (after having owned a PM business in the past). Obviously not all required, you can tailor it to your needs/the agency, but it'll help.

Firm/Agency Questions

1. How many properties does the agency manage?

2. What is the size of the staff and will I get a dedicated staff manager?

3. What is your code of ethics and are you associated with a professional body that oversees this code?

4. Will the agency represent me in court and what success have you had in the past? Are there any additional fees for this service?

5. What is the current vacancy rate across all of the residential properties?

6. Who does the agency insure with and what is the nature of the cover?

7. Does the agency use a Pod philosophy or a task based approach?

8. What are the fees and how are they structured? Are there any hidden fees?

a. Initial Lease Fee –

b. Advertising costs

c. Incidentals

i. Key cutting

ii. National tenancy database credit reference checks

iii. Police check

d. Additional management fees

i. Inspections

ii. Statements

iii. Postage

iv. Direct Credit

v. Rent reviews

vi. Lease renewals

vii. Arrears follow up

viii. Phone calls and faxes

ix. Photo condition report

x. Bill paying


Leasing Questions


1. Do you prepare detailed condition reports using photos and specifications on appliances?

2. Will you take calls and show the property after hours if required?

3. Will you personally show the property? Will you show it for individual enquires or open houses only?

4. How exactly will the property be marketed to attract the best tenants? Are there limits on marketing costs and if so, what are they?

5. What is your approach to marketing photos?

6. Do you have a comprehensive system for checking prospective tenant’s ratings and past rental history?

7. How long does do your agency usually take to lease a vacant property in this area?


Management Questions

1. What software do you use?

2. How often will you inspect the property and how often will you report to me?

3. What is included in the report and can I see a copy of the report I will receive?

4. Will you provide market rent information and advice when a rent review is needed?

5. Will you consult with me prior to making any adjustments?

6. How will you provide contractors access to the property during the tenancy?

7. Which maintenance tasks are handled by the manager and which are farmed out to contractors?

8. If you get sick, who will take over?

9. Do you have procedures in place during holiday periods and what are they?

10. How often do you pay me the rent? Are you prepared to amend that to fortnightly?

11. Can you please outline the exact process you follow if a tenant gets behind in rent right through to eviction?

12. When the tenancy ends, how are issues such as bond refunds and final property inspections managed?

Agent Questions

1. How long have you been in real estate?

2. How long have you been managing rental properties (min. 4 years)?

3. How long have you been a property manager in this area?

4. How many properties do you personally manage?

5. What are your professional qualifications?

6. Do you update your knowledge through courses and training?

7. Tell me a bit about recent changes in property law that is relevant to my situation.

8. Have you personally invested in property?

9. Are you related to the manager or owner of this agency?

10. Do you have any referrals from other land lords?

- Andrew

 

Who will be my main point of contact and how experienced is this person?
How long has he/she been with your business for?
You want to try and avoid having a new property manager every couple of months that doesn’t know your property, your tenant or yourself.

 

I think getting a good understanding in the following areas will help you make a decision:

Fees - what are ongoing fees, are there hidden fees, what are tribunal and potential project mgmt fees
Experience - who is my PM, do they own their own properties, how much turnover is there
Communication - who is my point of contact, how responsive are they, will I be consulted on maintenance
Agency - what is their reputation (reviews etc), how many properties vs PMs, do the PMs have an experienced department head, are they more focused on sales than PM

 

Keep it simple. when we are looking to hire a Pm we ask them a number of questions to get an understanding of their experience. something simple like tenant calls to advise they don't have any hot water. what do you do? you would be amazed at the responses we get. hire the one that gets the answer correct. Nothing worse then having to pay a call-out fee for something your Pm should know how to trouble shoot first

 

thanks @Russell Peter, @Mel Morgan @Ed Cassidy

 

Ask to see an example of an entry & exit report with photos, as well as a routine inspection report with photos, to see what the quality of their work is like. These reports really are the crucial bit in protecting your property.

 

Ask them their aspirations (ie do they want to become a sales person for the big bucks? ====> will they shoot through at the first opportunity), do you believe that you're paid enough for the job that you do?

 

All valid good questions, but gee, I'd hate to be your PM!

 

- Have they leased similar properties in that area, and average days on market
- Who would be looking after the property once it's leased
- Letting & management fees, advertising costs and other charges for example, for routine inspections, representation at Tribunal.
- What's their percentage of arrears and what their arrears policy is
- References from recent clients
Good luck with your new investment property.

 

The ONE thing that matters to me the most: am I going to have direct contact with my PM? Or do I need to use one of those absurd [email protected] addresses, and be replied to by whoever happens to decide to pick up my ticket?

Second, if I need to do something, am I required to login to a freaking portal and handle it myself? I pay YOU a fee to handle it. I can't stand it when there's a maintenance request and I'm asked to log into a portal I don't even remember my credentials for just to review and approve it. When I'm busy at work and see this come through I just thinking oh god here we go, I don't have the time for this crap.

Those two things are an instant turn off for me.

I don't interact with my PM's that often. Like once every 3-6 months for most properties. For the very few times we need to communicate, don't make it hard for me. PLEASE!

 

Ha! As I said, I would never ask all of these but it's just a reference list. Better to break it down a bit and make sure you're comfortable

- Andrew