Managing rental property in Denver, Colorado is not for everyone. Property management, among other things, requires experience and a unique skill set.
If you are thinking of hiring a property manager, there are certain traits you should be on the lookout for.
Luckily, this blog will help you weed out the amateurs from the pros.Generally speaking, though, a good property manager is…
- Friendly and professional
- Up-to-date with industry news
- Calm in conflict situations
- Passionate about the rental business
- Constantly seeking to learn more
While not exhaustive, these are just some of the qualities most successful property managers in Denver tend to share.
So, how exactly do you find a good property manager for your rental property? Well, by asking the right questions when interviewing them.
The Best Property Manager Interview Questions
Question #1: What services can I expect from you?
Not all property managers offer the same kind of services. Ideally, you want a property manager that offers a complete full-service package. That is one that can advertise your property, lease it, manage it, and even help you sell it if necessary.
In addition, ensure that the property management company is offering crucial management services such as:
- Tenant screening
- Property repair and maintenance
- Property inspections
- Tax management
- Bill paying
- Tenant evictions
- Tenant placement
- Rent collection
Question #2: How many properties are you currently managing?
This question gives insight into the size of the property management company. Too many units and you risk getting lost in the shuffle. On the other hand, too few units and you might start to wonder if they lost their clients due to poor service or inexperience.
So, what is “just right?” Broadly speaking, the Goldilocks level is between 200 and 600 rental units. It’s important to know that your rental property will be given the attention it needs.
Question #3: How many years have you been managing properties in Denver?
A substandard property manager is bad news for your rental business. They won’t have a clue on how to properly market your property let alone manage tenants. To avoid issues, look for a property manager that has at least 2 years of experience.
Question #4: Can you help determine a fair price for my rentals?
A good property management company should have the tools in place to determine the right rent amount for a unit. In most cases, this is achieved through comparative market analysis. They should compare similar rental units in your geographical location to find the highest possible rent price. They should also take into consideration any unique amenities that your rental offers.
Once done, your manager should then help you determine the right price point. Not too high – as this may scare away potential tenants. Not too low – as this may mean leaving money on the table.
Question #5: Do you have rentals of your own?
As already told, a good property manager should have a passion for the rental business. That means investing in the local rental market themselves. With first-hand knowledge in the Denver rental market, it’s more likely they have the understanding to help you outshine your competition.
Question #6: Can I cancel the management contract?
If you are not careful enough, you may find yourself locked in an undisputable property management contract. It’s never a good thing to be held captive to the management company. It’s better to have the company’s services speak for themselves.
Question #7: How much do you charge for your services?
Now, different management companies will have different pricing packages depending on the services they offer. So, expect pricing to differ throughout.
Some will offer a flat rate while others will offer a percentage of collected rent.
With a flat rate pricing, you’ll pay the company regardless of whether the unit is occupied or not.
With a percentage of collected rent, the fee is usually between 4 and 10% of the gross monthly income. This gives them an incentive to ensure that the unit is occupied. Without a tenant, it’ll mean zero income for them at the end of the month.
Question #8: How do you handle rent collection?
This is an important question to ask a potential property manager. Do they still require tenants to drop checks off at their office? If they do, it’s best to continue looking.
While that might have worked in the past, times have changed. Today, that’s akin to listening to a portable walkman.
You want to look for a property manager that is using the perks of modern technology to run their business and collect rent. For example, offering an online rent payment solution.
Enabling an online rental payment service reduces the chances of tenants missing rent payments. It’s not only more convenient for the renter but they can also automate their payments as well. Plus, it speeds up the rate at which you get paid.
Question #9: Do you perform property inspections? If so, how often?
Property inspections are significant when it comes to protecting your property’s value. As such, find out whether they perform them, how often, and at what fee.
Generally speaking, most management companies usually conduct four inspections per lease term. That is, when renters first move in, during seasonal changes, when driving by, and when renters finally move out.
Question #10: How will you market my property?
A vacant property is bad for business. It means no income at the end of the month.
You want to look for a company that has proven marketing skills.
If the company is still placing “For Rent” signs at the front yard and hoping for the best, continue looking. While such signs may still work, you want a property manager that is confident in their ability to craft rental listings and obtain maximum exposure.
There you have it. The ten best questions to ask when looking to hire a property manager.
Their answer to these questions will help you evaluate their company and determine whether they are the right fit for your rental property.
Choosing the right property manager can make all the difference when it comes to the success of your rental property.