Due Diligence - Property Management Questionnaire

A property manager is to your investment as your engine is to your car. Without a great finely tuned engine your car does not deliver you your intended outcome (a safe journey without incident). Likewise, without a systemized, knowledgeable property manager, you will never get to your intended outcome (a safe profitable business operated without incident). Due Diligence - Property Management QuestionnaireAs I research real estate markets looking for quality turnkey property providers I have a list of questions I ask the property managers. As my early holiday gift to you, I am sharing this list of questions with you.

The first questions have to do with finding good tenants. A building with good tenants tends to have fewer maintenance and other issues.

Property Management Questionnaire - Tenant Questions

  • How many vacancies do you have right now? Out of how many total units that you manage?
  • What is the average length of time it takes to fill a vacancy?
  • Is that average time getting longer or shorter?
  • How do you market your rental units?
  • Do you use the web site to attract new tenants and to keep prospects informed?
  • What factors would make you reject a prospect?
  • Would you accept a tenant who met your qualifications in some areas, but not others? 8. Which qualifications are most important to you?
  • What screening methods do you use?

Property Management Questionnaire - Tenant Management

The next questions relate to tenant management. It's just as important to keep good tenants as it is to find them.

  • How do you collect rents?
  • What is your late rent policy?
  • What other rules do you set for tenants?
  • What percentage of tenants do you have to evict?
  • How does the eviction process work here?
  • How do your tenants contact you?

Property Management Questionnaire - Maintenance

  • Which kinds of maintenance jobs are handled in-house?
  • Which ones do you use an outside handyman for?
  • Which ones do you use professional contractors for?
  • How many quotes do you get for jobs?
  • How expensive does a job have to be for you to contact me before doing it?
  • What are your rules for contractors being inside occupied rental units?
  • Who are your preferred contractors?

Property Management Questionnaire - Experience

You want managers to know the local real estate world inside and out.

  • How long have you been a property manager?
  • Do you have any certifications?
  • Does your locality require landlords to have a license or permit to operate a rental and if so what are those fees?
  • Do you understand the local rules and ordinances to accommodate things such as local licensure requirements and or section 8 requirements?
  • Do you personally invest in real estate in this area?

Finally, you need to understand your arrangement with the property manager.

  • What is your fee structure?
  • Are your reports web based if not how do we get them?
  • Do you require an exclusive arrangement to broker the property?
  • How much notice will you give before terminating a contract?

Here are some other things to watch out for - a manager with a messy office. Chances are they doesn't much care about the condition of the properties either. A manager you have a hard time reaching by phone or email. If he won't return your messages now when he's trying to get your business, what are the chances that he'll do better later?


 

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