FIRST: Consider and identify your needs. Why are you hiring a property management company? If you are currently with another company, what is working and what isn't? What are your goals for your property? Does this company have experience with your type of property? Then, ask specific questions that help you determine whether this would be a good match. Identifying what you don’t want usually comes easy, but be sure to identify what you do want as well. Being as transparent with your needs as possible, and then inquiring into the ability of the property management company to meet them, will save you time and headaches down the road. Get down to what is most important to you. And don’t assume! Ask, clarify, inquire. Properly vetting a prospective management company can help you find the perfect company for you.
SECOND: Trust is very important in this business. Too often, the decision about who to hire comes down to cost. Although cost is a consideration, don’t discount the importance of trust. Does the person you are meeting with seem trustworthy? Would you let them in your house? If you were a resident, would you feel comfortable meeting them at a property and giving them your move-in money? Make sure you meet with the prospective management company face to face to help you determine trust and transparency. Trust is harder to determine via email exchange or polished ad materials. Look them in the eye, ask direct questions, and, when you walk away, ask yourself if they seem trustworthy.
THIRD: Do they have local knowledge. In California, there are state, county, and local city laws and regulations that govern housing. Be sure your property management company has the knowledge and experience to navigate the laws and manage your property within the limitations set forth by them. Knowing the differences in laws and regulations, and knowing which apply to your property, is key in properly managing the property and will help avoid potential lawsuits.
FOURTH: Do they have good communication, availability and responsiveness? The most common complaint I get from prospects looking to switch management companies comes down to communication. The management company either isn’t responsive, their point of contact is unavailable, or, they get a different person every time. Whether you are a hands-on or hands-off owner, you will want to be sure your point of contact is available and responsive to you when needed. This goes for your residents, as well. If a tub clogs and overflows on a Saturday, how does the company handle this?
FIFTH: What is the tenant screening process? Good management companies will screen on credit, residency and employment. They will also follow all fair housing laws. Long-term residency is the best type of residency. It is in the best interest of both the property owner and the management company to place a well-qualified resident. The screening procedures should be consistent across the board. Also, consider the screening process from an applicants perspective. Is it straightforward and user friendly, or is it cumbersome?