Questions to ask a Property Manager?

[benz1]

Can anyone advise what questions to ask when looking for a Property Manager?

Thanks in anticipation,
Ben

[Marc]

Hello!

We have question sheets for the following professionals:

1) Property Manager
2) Mortgage Broker
3) Accountant
4) Solicitor

Click here to access the sheets

Cheers

Marc

[benz1]

Thanks Marc, that's perfect. Just when you think you've explored the whole site you find something new... ;-)

Ben

[Glenn]

You need to ask some really nasty questions that will cut through the sales hype.

Like when were you last in the tribunal. Can I see a copy of the tribunal order.
What is your current sitting tenant debt across the portfolio.
How do you notify the tenants when they miss the rent. Like letter, Txt, phone call, personal call.

Ask for a list of the current vacancies and compare that with the number of properties advertised that day in the newspaper.

Look to see how many properties are available today.
This indicates how many empty properties not earning rent they have in their portfolio.

Compare the number of properties they have to let compared to the total number in the portfolio.

See if the firm supplies a free car for the staff to use or do they have to supply their own. A tight owner will be tight on advertising also.

Ask how they go about finding lost tenants and collecting old debts.

Love to hear everyones comments on these questions.

[Marc]

You need to ask some really nasty questions that will cut through the sales hype.

Like when were you last in the tribunal. Can I see a copy of the tribunal order.
What is your current sitting tenant debt across the portfolio.
How do you notify the tenants when they miss the rent. Like letter, Txt, phone call, personal call.

Ask for a list of the current vacancies and compare that with the number of properties advertised that day in the newspaper.

Look to see how many properties are available today.
This indicates how many empty properties not earning rent they have in their portfolio.

Compare the number of properties they have to let compared to the total number in the portfolio.

See if the firm supplies a free car for the staff to use or do they have to supply their own. A tight owner will be tight on advertising also.

Ask how they go about finding lost tenants and collecting old debts.

Love to hear everyones comments on these questions.

Wow! Great questions!

Cheers

Marc

[benz1]

I second that - great questions! Maybe they should be added to the Question Sheet?

Ben

[Propoholic]

I think the standard rental agent will have a standard sales speak response to the questions in the PT question sheet.

You need to hear the facts and how they actually deal to the difficult situations, typically as per Glenn's examples.
Glenn wrote:

How do you notify the tenants when they miss the rent. Like letter, Txt, phone call, personal call.

Get the PM to demonstrate on their system where the above correspondence is kept. They should be able to show you letters sent to tenants following rent defaults. How do they record verbal communication/agreement with the tenant, is there a log on the system for this?

Up to what value of work will the PM rely on the contractors honesty to complete a job satisfactorally, without personally inspecting the work. Have they got any examples where they have had to with hold final payment to a contractor untill defective work has been
remedied.

Give the PM an example of a small project you want them to manage for you eg a $15,000.00 paint job (interior & exterior) on a weatherboard house. How are they going to run this job for you, from innitial pricing, checking off of work and reletting the property in a short time frame. How do they produce a basic paint specification for the painter to work to....or do they let the painter do what he wants? Are they going to be checking off paint work between coats, if not who is going to be doing this??

You dont want to hear: 'Terry is very good, we dont need to check his work'. Equally, you dont want to hear that they havent had any contractor disputes- there needs to be a healthy level of assertiveness and confrontation backed up with problem solving. If property managers are comfortable with being tough on their contractors they are more likely to be tough on the tenants. If they are soft on the contractors it is likely they will be soft on the tenants.

[Marc]

Hello all,

Has anyone got a little bit of time to update our property manager question sheet? Donna and I are busy keeping the site going so any help would be great!

Cheers

Marc

[benz1]

I guess I should volunteer as I started the thread off... will try to do it over the weekend. Can you PM me an email address to send it to?

Ben

[duvetray]

good points Glenn, the sheet of questiosn is a good resource for general questions but I have found the type of Questios that Glenn has asked are based on actual shortcoming of baad property managers and the answers will help you to identify how that company may deal with problems. as thats the only area you are concerend with. a Child can oversee a place where a direct debit is in place and the tenants keeping the proeprty in good conditon, its the way problem tenants are handled that maketh a great PM.

another question suggestion.

Please provide me an example of a monthly statement that you provide to clients and one ideally showing irregularities in payments and how quickly they were resolved

[Glenn]

Well then how about these for starters.

Once a tenant misses their rent at what stage do you contact the tenant.
At what stage or time do you issue a 10 notice.
After issuing the 10 day notice when do you apply to the tribunal.
When the tenant fails to pay the agreed rent and arrears when do you typically evict them.
What do you do when you find the tenant has a dog or noisy parties.

[Marc]

I guess I should volunteer as I started the thread off... will try to do it over the weekend. Can you PM me an email address to send it to?

Ben

Yay! Thanks Ben. I will PM you my email address now!

Cheers

Marc

[leapy]

I like Glenn's suggestions. They cut to the quick. The question sheet is just soooooo long. You may even find your business being turned away if you barrel prospective property managers with so many pages of questions. Pain-in-the-butt landlords who look like over-pedantic newbies can be as much of a headache for property managers as misbehaving tenants.

Hey so it's a Monday morning and I am feeling outspoken. :-)

[Glenn]

That is so right.
I have been known to sack the occasional owner,
I had someone ring last week. They rang because someone they trusted told them to ring me.
They lost interest in talking to me when they found I charged 1/2 percent more than the competion.
On a typical $280 PW property that amounted to $70 per year. So they will go off to a cheapy and wonder why they only get 40 weeks rent.
I have someone else nibbling that also came as a result of a referal (almost all do). They have their complete block empty and have all sorts of problems. (they say) Yet they wanted two references. I ask you. I think they are the only clients that have asked for this. The person that told them to come to me surely should have been sufficient. He after all is a proffessional property adviser. So really folks for the most of the time.
Forget the hype. Go for someone that your friends or someone you trust has recommended.
Make sure that your friend has a similar property to yours. No point in comparing apples with pears.

[cube]

Does the PM question sheet still exist?