Appointing the right property manager is critical to the success of your property investment journey. Here are 6 questions that will determine whether a property manager is the right fit for you.
1. How many years of experience do you have in property management?
Inquire about their years of experience, types of properties managed, and their track record of success. Ask for examples of challenging situations they’ve handled and how they resolved them.
The property manager’s answer to this question will determine their competency and will help the investor understand the property manager’s experience, indicating familiarity with tenant relations, maintenance coordination, financial management, and legal compliance.
Gauging industry knowledge ensures familiarity with market trends, regulations, and best practices, vital for adapting to changing conditions. It will also allow for the investor to determine whether the property manager is in alignment with the property owner’s specific needs and preferences.
Questioning a property manager’s experience is crucial for gaining insights into qualifications, capabilities, and suitability for the role, serving as a fundamental step in the selection process.
2. How many properties do you currently manage?
Understanding the workload of a property manager is crucial to determining whether they can dedicate sufficient time and attention to your property, gauging whether your property will receive personalised attention and high-quality service.
Assessing the manager’s workload aids in evaluating their responsiveness to issues and emergencies, determining if they will promptly address maintenance requests, tenant inquiries, and other concerns.
By inquiring about the manager’s workload, property owners can assess workload, responsiveness, communication, and the overall quality of management services provided, enabling them to make an informed decision when selecting a property manager.
3. How do you market vacancies and attract quality tenants?
Asking a property manager how they market vacancies and attract quality tenants is essential for several reasons:
Maximising occupancy rates is a primary goal for property owners, underscoring the importance of effective marketing strategies to minimise vacancy periods. Property owners seek assurance.
that their property manager employs a proactive approach to marketing vacancies and promptly attracting tenants.
Prioritising quality tenants is paramount for property owners, emphasising the need for reliable individuals who pay rent punctually, maintain the property, and adhere to lease terms. By delving into the property manager’s tenant screening and marketing techniques, property owners ensure methods are in place to attract tenants with stable incomes and favourable rental histories.
Additionally, understanding the property manager’s approach to vacancy marketing offers insight into their grasp of the local rental market. Property managers should possess knowledge of market trends, rental rates, and tenant preferences, tailoring marketing efforts accordingly.
Inquiring about the advertising channels utilised, such as online listings, social media, signage, and local publications, helps assess their effectiveness in reaching the target audience.
Ultimately property managers should implement strategies to maintain tenant satisfaction, address concerns promptly, and renew leases to minimize turnover.
Assessing vacancy marketing strategies allows property owners to evaluate the property manager’s competitiveness in the local rental market allowing property owners to make informed decisions when selecting a property manager to oversee their rental property.
4. How do you handle maintenance and repairs?
Property maintenance is pivotal for preserving the condition and value of a property, making effective maintenance protocols essential for property owners. They seek assurance that their property manager has systems in place to maintain the property’s appeal to tenants.
Prompt maintenance not only enhances tenant satisfaction but also fosters retention by ensuring their comfort and safety. Regular maintenance and timely repairs contribute to preserving the property’s value over time, safeguarding the owner’s investment. Property owners should inquire about the manager’s network of vendors, response times, and workmanship quality.
Compliance with local regulations and laws is imperative to mitigate legal liabilities. Property managers must ensure maintenance activities adhere to building codes, health and safety regulations, and landlord-tenant laws.
Transparent communication regarding maintenance issues, progress and expenses is expected by property owners, as well as prompt communication with tenants and owners. Property managers should develop maintenance budgets, obtain competitive bids, and monitor expenses diligently.
Overall, inquiring about maintenance and repair handling ensures property managers possess the necessary knowledge, resources, and systems to maintain properties effectively, safeguard investments, and deliver quality service to tenants. This evaluation aids property owners in selecting a suitable property manager.
5. How do you handle tenant disputes and evictions?
Property owners seek assurance that their property manager comprehends legal requirements, procedures, and timelines for resolving disputes and initiating eviction proceedings. Given the legal and financial risks associated with disputes and evictions, effective risk management strategies are imperative.
Property managers should implement policies and procedures to mitigate risks, minimize liabilities, and safeguard the owner’s interests. Furthermore, fostering positive tenant relations is essential for tenant satisfaction and retention. Property managers should possess strategies for addressing tenant concerns, resolving conflicts amicably, and nurturing positive relationships to reduce turnover.
Proper documentation is essential in dispute resolution and eviction proceedings, emphasising the importance of maintaining accurate records of lease agreements, communications, and actions taken.
A property managers’ proactive approach to mitigating risks can be assessed through inquiry into their screening criteria, lease agreements, and enforcement policies.
Overall, inquiring about the property manager’s approach to disputes and evictions aids property owners in assessing their knowledge, experience, and preparedness to manage such situations effectively. This evaluation ensures property owners can entrust their property manager to handle disputes and evictions with diligence, professionalism, and legal compliance.
6. Finally, what are your fees and charges?
When evaluating a property manager, it’s crucial to clarify their fee structure, including management fees, leasing fees, maintenance fees, and any additional charges, while also asking about payment schedules, renewal options, and any potential hidden costs.
Clarifying the scope of services offered, including tenant screening, rent collection, maintenance coordination, property inspections, financial reporting, and eviction procedures, ensures alignment with your needs and expectations.
Lastly, inquiring about financial management and reporting practices, such as accounting practices, rent collection procedures, and handling of security deposits and late payments, offers transparency and insight into their financial stewardship capabilities.
These questions can help you assess the property manager’s qualifications, expertise, and compatibility with your investment goals. Take the time to thoroughly evaluate their responses and consider conducting interviews with multiple candidates before making a decision.
This article has been provided by BMT Tax Depreciation, Australia’s leading supplier of residential and commercial tax depreciation schedules.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation. Please contact 1300 728 726 or visit bmtqs.com.au for Australia-wide service.
