If you’re new to owning a rental property, you may wonder about your property management “Is this normal?” Over the years, we’ve encountered many new property investors dealing with concerning issues, only to discover that their property manager was far from the standard.
If you find yourself questioning your property manager’s actions, responses, or lack thereof, this guide will help you discern the red flags from the routine. Remember, it’s easier to ask the right questions up front – but if you’re left feeling uncomfortable, it may be time to make a change.
1. What’s your experience in property management?
Red Flag: “Oh, I just started a few months ago, but I’ve rented out my home before.”
A one-time personal rental is far from managing multiple properties and exposure to the myriad circumstances that may arise with maintenance or tenants. Experience matters in this industry. If your manager is new and lacks a mentor or team, proceed with caution.
2. How do you determine rent prices?
Red Flag: “I just check a few nearby listings and then go with my gut.”
Rent determination should be systematic and data-driven. Gut feelings can lead to undervalued properties or prolonged vacancies.
3. What’s your tenant screening process?
Red Flag: “I usually go with a first-come-first-serve basis.”
This is a huge no-no. A proper tenant screening system is paramount to finding dependable tenants and ensuring a fair and compliant screening process. The first application isn’t always the best fit – there should be a standard in place that is applied to each applicant until the ideal tenant is found.
4. How do you handle maintenance requests and repairs?
Red Flag: “When tenants complain a lot, I eventually get to it.”
Delayed or ignored maintenance not only angers tenants but can lead to more significant, more costly problems down the road.
5. What are your fees?
Red Flag: “It varies. I’ll let you know at the end of the month.”
Transparency is key. If they can’t provide a clear fee structure upfront, you might be in for some unpleasant surprises.
6. How often will you communicate with me, and how?
Red Flag: “Only when there’s a real problem.”
Regular updates are essential. Whether it’s good or bad news, you should always be in the loop about your investment.
7. How do you handle late payments or evictions?
Red Flag: “I try to avoid confrontations. They’ll pay when they can.”
While compassion is essential, a property manager needs to handle late payments promptly to protect your investment.
8. Can you provide references from other property owners you work with?
Red Flag: “They’re too busy to chat, but trust me, they’re satisfied.”
Always, always check references. If they’re hesitant, it’s a sign that there might be issues they’re hiding.
9. What sets you apart from other property managers?
Red Flag: “I’m cheaper than most.”
While cost savings are great, you get what you pay for. Ensure they offer value, not just a low price.
10. How many properties are you currently managing?
Red Flag: “I have hundreds under me. I’m in high demand.”
Having too many properties can mean they’re spread thin and might neglect yours. Quality over quantity.
11. Do you have an after-hours contact system?
Red Flag: “No, but I check my emails occasionally in the evening.”
Issues don’t clock out at 5 PM. Ensure they’re reachable in emergencies.
12. How do you market available properties?
Red Flag: “I put a sign in the yard.”
In today’s digital age, a multi-platform marketing strategy is vital to filling vacancies quickly.
If you recognize these red flags with your current property manager, it may be time to reconsider. A trusted property manager is worth their weight in gold – ensuring you maximize your returns, maintain your property’s value, and sleep soundly at night.
So, ask yourself: Is this normal? If your gut says no, trust it. Your investment deserves the best. Work with the best, contact a Desert Dimensions Properties full-service Arizona licensed Realtor and Property Manager today at 480-270-5355.