I think this is a critical trait of a good management company. In my interview with Jake, I ask him questions that you, too, should ask your potential property management company, and Jake talks about what you should look for in an answer and what might be a red flag. Jake says that one of the first things your property manager should ask for is what your investment goals are. He feels this is SOOO important because it will give you an idea how compatible you are with the property manager.
The biggest issue you need to address is how compatible you are with your property management company.
- What are your goals with regards to free time? Cash Flow?
- What are your required returns?
- When do you want to sell the property?
- Do you want to defer maintenance?
- What is your risk tolerance?
Here are some of the “interview” questions we cover next:
- Tell me about your screening process.
- How often do you evict tenants you place?
Questions around vacancy
- Do you renew leases? How does the system work?
- What happens when someone gives you a notice to move out?
- Tell me about your system to turn over a property. How many days does it take to turnover a property?
- What systems do you have in place to manage vacancy?
- Do you have a preventative maintenance program? What is it?
- What systems do you have in place to reduce deferred maintenance while controlling costs? (from below)
- What is your process for handling repair requests?
- How do tenants make requests?
- How quickly do you typically respond?
- Who does the work?
- What do you charge for the work?
- What measures do you take to reduce my liability?
- What is your management fee?
- What services can I expect to be charged for? What about court time? Unit inspections?
Legal / Evictions
- What is your process for evictions? Ask them for the step by step process.
- Tell me about a problem your company has dealt with. Lawsuit accusation?
- Tell me about one your most successful relationships.
Bottom Line Results
- Can you recommend a budget for me?
- What property management software do you use?
- What can I expect on my profit and loss? What other kind of reports do you generate?
- What systems do you have in place to maximize income?
- How does this management company add value?
How to Connect with Jake
Check out Jake’s web site at www.JacobGrant.com or drop him a note at jake at jacobgrant.com.