5 Questions to ask any property management company before you sign
Dustin Edwards • March 27, 2020
Ask the Questions to Help You Find the Best Property Management Company
Your first rental property is a big deal and the first time you hire a property management company is another milestone. You have made a leap into becoming the landlord and it’s something to be proud of and it can also be scary when you are considering letting someone else take care of your asset on your behalf. We have discovered over the years that many first time owners don’t ask as many questions as more seasoned landlords. For many it is because they aren’t sure what questions they should ask. It is after all their first time.
Whether you ultimately decide to engage with Beach Cities Property Management or you decide on another local property management we want you to be prepared to ask questions. A local property management is charged with taking care of one of your largest assets and that means you certainly are empowered to ask as many questions as possible to help you feel confident in the relationship.
To help jump start the interview process as you consider which property management would be best for your property in Long Beach, we invite you to consider the following:
Can you share with me what my monthly statement would look like based on the fees you are proposing?
While the most common form of marketing property management services is that of a % of the monthly rent (i.e. 6% of the monthly rent is due to the property management company) you want to make sure this is truly the fee that will be charged during the engagement with the company. For example do they have other charges such as:
- Tenant placement fee?
- Renewal fee?
- Advertising fee?
Just because they have additional fees beyond the property management fee doesn’t mean they won’t be a match for you; however, it is important to understand every possible fee and get it in writing prior to signing an agreement. Having a proper net income on your rental comes down to the true cost of ownership and the management fees will impact your overall costs. If you see a fee in the marketing or in their presentation packet keep asking questions to ensure you understand all of the fees.
How many properties do you have under management? How many properties within [your city] do you manage?
Understanding whether a company has <10 properties under management or >800 properties under management will give you perspective on the level of systems they have developed and even the service you can expect.
Smaller companies (i.e. <100) are often operated by individuals and that can mean you get their full attention...or it could mean they are stretched a bit thin and you might have trouble getting a hold of them. If the company has less than 100 units under management ask them to share with you what their daily schedule looks like to give you an idea of what you can expect.
Property management companies with >500 units generally have staff, a physical office location, and have set up systems that allow them to stay in clear communication with tenants and property owners. Of course not all >500 unit firms are created equal and one area you will want to explore is how many properties each manager has under their purview. You can even dig deeper and ask how they delegate work to see how your property will be handled.
Asking specifically how many properties they have under management within your city (or better within your neighborhood) will help you to understand their knowledge of the local market. Rents in Long Beach can vary by more than 10% with a difference of just a few streets and having a company that understands that will benefit you in the long run.
What is your process for fixing something small at the property (i.e. like a clogged sink)?
One of the biggest reasons people hire a property management company is because they don’t want to get the late night phone call “my sink is clogged, what are you going to do?”. As you are interviewing property management companies ask them how they handle the small challenges that inevitably arise from a property. Do they have a handyman on-staff? Do they have a process for calls that come in after 9pm? What happens if the owner of the company is on vacation? Dig deep to make sure that one of the answers isn’t “well they could call you” as it truly is the property manager’s job to make sure the smallest of details are handled.
What is your process for replacing or repairing something larger at the property (i.e. like a roof or mainline)?
If properties only had the small challenges of “my sink is clogged” then life would be much easier but we all know that isn’t the case. Even the best maintained properties will have something major occur such as the need for a new roof or mainline. When something major occurs how does the property management company handle it? How many proposals do they gather? How do they work with the tenant to minimize disruption? When do they seek your approval? Major repairs can be stressful and it is important to understand before an event occurs what will happen to alleviate your fears.
How many people are on your staff? Can you explain their job roles?
The size of a property management company’s staff is usually inline with the number of units they manage (i.e. larger number of units and a larger staff). A larger staff doesn’t always mean that they are the best fit for your goals and that’s why we recommend asking what the job roles are for each of the staff members. Companies that are well managed have specific job titles and roles defined for each team member because that results in better service for the client and better operational efficiency (a true win-win).
Finding the right property management company for your Long Beach rental means taking the time to interview a few companies. We are happy to be interviewed to see if we are the right match for you and your Long Beach rental. We can answer any of the above questions and we can even answer questions about how much your property could rent for when you request our Free Rental Analysis.
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Have you considered including utilities in your rent? Here are some of the most common utilities that help tenants see a greater value on renting your property
Your property’s roof is its first line of defense from the sun, rain, and wind. Which means it will eventually wear out. Many landlords overlook this since a roof is generally designed to last twenty or so years, and they simply forget until the signs begin to show. Below, we’ve compiled a short list of five signs it’s time to replace your roof for when doing property inspections. Tenant Complaints When your roof has become damaged, your tenants will likely be the first to notice. When tenants report water stains on the walls and ceilings, it's a sign that you should inspect your roof. In severe cases, your tenant may notice water dripping from roof leaks. This moisture, if left unchecked, can lead to the growth of mold and mildew, which can be a health concern for your tenants. Some tenants simply move out, assuming the odors or recurring respiratory issues are caused by the rental and not just the roof. This leaves you with a vacancy to manage, and if you’re unable to find the leak during this period, the following tenant may have a negative experience as well. Many landlords have found it beneficial to have property inspections regularly in order to preserve both the property’s value and the tenant’s trust. Roof’s Age Even with the highest quality materials, a roof still has a shelf life. Most roofs in Long Beach, CA, use asphalt shingles, and these generally last around twenty to twenty-five years. Once they've passed this threshold, the faults begin to show themselves. A sagging roof line is a sign that your roof is due to be replaced, as it's a serious concern. It often indicates that moisture has entered the underlying decking and caused some structural damage. From ground level, you may not be able to notice these problems. However, during an inspection of the property, an experienced inspector should be able to notice soft spots or contours on the roof. These forms of damage often get worse over time. Coordinating these inspections and preventative maintenance can be difficult for landlords with an extensive portfolio, which is why many enlist help. Shingle Damage Damaged shingles are one of the most obvious signs that your roof is deteriorating. If you ever notice cracking, curling, or patches with missing shingles, the roof is no longer providing adequate protection to your property. Although you can buy time with spot repairs, if the entire roof shows signs of damage, it’s likely time to replace the roof. Aside from protecting your property, the roof affects your property’s curb appeal. A patchy and worn-out roof can drive down the rental appeal. Prospective tenants will easily be able to spot the differences between pictures taken in the listing when compared to the property in person. This can not only hurt your chances of filling a vacancy, but it can also hurt your reputation as a landlord. Granules in Gutters After heavy rainfall, it's a good idea to inspect your rain gutters. If you or your property manager notice large amounts of black or gray granules, it means your roof shingles are breaking down. These granules are critical for shedding water off the roof. Once the granules fall off the shingle, the shingle begins to degrade faster under the sun and elements. If you’re not sure how old your roof may be, Loss of granules can be a strong indicator that your roof is nearing the end of its lifespan. Regular gutter cleaning and roof inspections can help catch these problems early before they become expensive repairs . Increase in Utility Bills Your tenants complaining about their utility bills increasing or poor temperature control in the rental may not realize the roof is to blame. A failing roof can result in subpar insulation and ventilation. This can lead to higher heating and cooling bills for your tenant. This can be frustrating for your tenants while putting more strain on the HVAC system. This puts more wear and tear on your HVAC system. Being aware of the warning signs and being proactive can protect your rental property, maintain tenant satisfaction , and avoid emergency repairs. If you need help inspecting your roof or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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