Hiring a Memphis property manager is an excellent decision if you want to earn more on your rental property and spend less on things like maintenance, vacancy, and expensive legal mistakes.
But, how do you choose the right management company for your property?
You’ll need to do a bit of research. Check out the websites, social media platforms, and online reputations of several property management companies in Memphis. You’ll begin to get an idea of how they do business and what they value when it comes to managing rental real estate.
Then, schedule some interviews. Pay attention to how quickly a potential management company responds to you. This might give you an idea of whether they value communication and service.
Once these phone calls or meetings are in place, think about what you’ll ask. Based on our own experience, we have some essential questions to ask before you hire a Memphis property manager.
Ask About Memphis Property Management Experience
Experience is important in a property manager, especially since you expect them to handle rent collection, lease enforcement, tenant relationships, and maintenance. An experienced management company will anticipate challenges, solve problems creatively, and offer a set of processes and systems that have worked for them effectively in the past.
Make sure to ask about their experience in the local market and also find out what types of rental homes they manage. If you’re renting out units in several small apartment buildings, for example, a property manager who specializes in single-family HOA properties may not be the best match.
We also recommend you ask how many rental homes they’re currently managing. You want to be sure they have the capacity to keep up with the demands of their portfolio before you give them more work.
Ask About Maintenance and Vendors
Don’t hire a property manager without understanding how maintenance will be handled. You’ll want to know what the process is for reporting emergency and routine maintenance. You’ll want to know if there are preventative maintenance plans in place.
The most important question you’ll ask pertaining to maintenance is where and how they hire their vendors. Some companies use an in-house team and others work with a preferred set of vendors and contractors. There’s no one way to do it, some property managers also have a hybrid system where they use both in-house workers and outside vendors. Just make sure the professionals are licensed and insured. This will protect you from liability and ensure that good work is done at your investment property.
Talk about maintenance costs, too. You’ll want to know how they manage to keep your expenses reasonable without sacrificing the care and condition of your rental property.
Ask about Rents and Rent Collection
How is your property priced? Talk about how a company establishes an accurate rental value. What kind of data does the property manager use?
You’ll also want to know how rent is collected from tenants and paid to you. Good management companies have invested in technology and likely have an online portal for both tenants and owners. Tenants today want to pay rent online, securely and conveniently. Make sure the management company can provide this service. Find out if you’ll be paid electronically as well, and when.
Accounting statements are part of rent collection and payments. You’ll want to know if statements are provided monthly, quarterly, or if they’re always available through your online portal. A good property manager will have a system set up so you can follow the income and expenses associated with your rental property. Look for the appropriate use of technology and good safeguards to protect your money and your information.
There are dozens of additional questions you should ask, but these three subject areas will get you started in the right direction for a robust conversation about why you should trust a Memphis property manager with your investments. We’d love to answer these for you ourselves, so please contact us at RiverTown Realty.