A property manager and the management company must be licensed and registered with the city and the state. In addition, inquire about other professional property management affiliations that the company has as well as any trainings they attend.
12. What happens if a tenant doesn’t pay rent?
The delinquency and eviction process should be explained to you. The company must have a clear and aggressive collection process for tenants who are not paying on time. Progressive companies will track their internal tenant delinquency rate monthly, and should be able to show that to you. Inquire about the eviction process and costs. A strong screening process can assist in preventing the need for eviction.
13. What insurance do you carry and what insurance should I carry as an owner?
Inadequate insurance can leave an owner high and dry if a catastrophe happens. Most management companies are required to carry errors & omissions insurance, workers compensation as well as general liability. Owners need a minimum of one million dollars in coverage per hazard, as well as liability insurance and flood insurance if necessary.
14. How often will you inspect my property?
Some type of walk through or inspection should be performed annually. Ideally, there is a move in inspection, a six month inspection and then an inspection at 11 months, prior to the tenant move out or renewal. If your tenant is moving out, an additional inspection should be conducted after the tenant leaves and before the security deposit is returned.
15. How often does the company send out financial statements and reports?
This is a critical factor in your relationship with a property management company. It’s important to receive and review monthly financial statements and maintenance repair updates.