When investing in a property, a smart investor will always want to minimize their operating expenses to maximize their revenue. One approach that property owners have is to manage the property themselves. This way is possible if they have the expertise and knowledge to successfully manage a property within the bounds of the law.
However, it may be more profitable to hire a property manager if:
- you don’t have enough experience in the market,
- this is not your only job,
- you intend to own many properties.
Many beginner property owners or landlords make common mistakes. These mistakes can lead to costly consequences that may result in you losing your investment.
When hiring a property manager, make sure he or she has the skills needed to effectively and efficiently manage your property.
Here are the top nine questions to ask when interviewing a property manager in Reno, Nevada:
1. Are you a licensed property manager? What are your certifications?
For your and your tenants’ protection, as well of that of your properties, ask your property manager if they are licensed and what their certifications are.
A Nevada Real Estate license is required prior to applying for the Property Manager Permit. The Property Manager application will not be accepted along with the original application for a real estate license.
2. How many properties are you currently managing? What types of properties are they?
To determine if they are capable of managing your investment, it’s important to know if they are knowledgeable about your type of property. Different types of properties entail distinct tasks and responsibilities.
Determine what types of properties they manage. For example, the management of a duplex is considerably different from that of a larger complex, or from a condo.
If the property manager is managing too many rentals, you may get lost in the shuffle. If they are managing too few rentals, that may be an indication of inexperience.
3. How are potential tenants screened?
Selecting the right tenants is one of the keys to a successful rental property. Tenant screening is a thorough process that involves strict checks on employment, rental, and criminal history, among other background screening checks.
If you are experienced in this area and have the necessary resources, then you can conduct the tenant screening yourself.
If not, an experienced property manager has a good screening process that will help you select the best type of tenant for your Reno property.
4. How is rent collected?
Look for a property manager who has a solid process for rent collection. It should be convenient and efficient for your tenants. They should have different payment options such as online solutions and bank transfers.
Furthermore, the lease should outline when the due date is, the amount, and any penalties that come with any late payments. The lease should also indicate what occurs when a tenant defaults on their lease terms and the eviction process that follows.
5. What is your fee structure?
Property managers often charge different types of fees. Make sure that the fee is based on the rent collected rather than the rent that is due. Meaning that you’ll only pay when there is a tenant.
You should also ask if there are additional charges such as tenant finder’s fees, maintenance markups, emergency on-call services, maintenance reserves, evictions, court costs, and other charges.
Keep in mind that your fee structure should be clearly outlined by the property manager and written into the management contract.
6. What types of reports will I get?
It is recommended to stay on top of your finances to understand how your property is doing for you to make justifiable financial decisions. Any property manager should be able to produce sample documents for you to review.
Look for a property manager that is able to explain each aspect of their report. You also need to ensure when and how you will be getting these reports.
7. Who will take care of the maintenance work?
Understanding who is responsible for maintenance is important to keeping your property well taken care of. You should also keep track and record what repairs and maintenance work has been done and by whom.
8. Can I ask for references?
It’s important to do your research. Check for reviews on your prospective property manager. Speak to their past and current clients, vendor partners, real estate agents, and contractors.
A good property manager should have no issues giving you references.
9. How long is the management agreement for?
Before signing the contract, understand all the terms of the agreement first. Make sure that you are aware of what the process is to terminate the agreement if both are not satisfied with the partnership. It’s also suggested to have an attorney review the agreement before signing it.
There you have it. 9 of the best questions to ask a property manager before hiring them. Deciding to hire a property manager is a big decision, so make sure to use these questions to help you in making your final choice for your Reno, Nevada property.