Things to Consider when Interviewing Property Management Companies.

by Joshua Dorkin    (RPM Answers By Westside Office Manager)
  Picking a great property manager for your rental properties is one of the most important tasks you’ll undertake, once you’ve actually found a good rental. In searching for a manager, you’ll want to do a thorough interview, and in doing so, you should be able to figure out if they are worth working with. Here are some questions you’ll want to keep in mind when interviewing managers.

Questions to Consider When Interviewing Property Managers

1 – Cost: Managers generally charge a monthly fee to watch and maintain your property. Those fees can range from as low as 5% or so, to upwards of 20%. Obviously, you should look for a company that charges less and provides more services. RPM: We have very competative rates & offer more services than any other mgt. co in the area. Call us today for a free quote 310.858.5514

2 – Communication: For me, communication with a manager is of the utmost importance. I need someone who uses email, and is responsive to both the telephone and email. If I don’t get a response back in a timely manner, it is time to walk. In addition, you need someone who can deal with you and your idiosynchricies. Some of us are needier then others. You want to let companies know up front where you stand, and make sure they’re willing to be flexible for you.

RPM: We are available 9-5 mon-fri at the office & 24 hours a day via email & our online interactive system for all owners.

3 – Termination of your Agreement: In the event that your “relationship” does not work out, you want to know up front what exactly it will take to terminate your agreement. Is there a charge for breaking your contract? Penalties?

RPM: We charge 3 months of agreed mgt. fee's when contract is broken.

4 – Repairs and Maintenance: Does the company have their own maintenance crew, or do they contract out to a handyman? How much do they bill out at? Can they handle all kinds of repairs? What happens if they can’t do something? Do they have other contractors that they work with?  RPM: We are a full service mgt co. we offer in house services or we can contract out with vendors & contractors we have relationships with. We bill out at $35 an hour.

In addition, you probably want to have a maximum that the company can spend without contacting you. Generally, I will allow my managers to do what they need to as long as it is for something under $500. I must confirm any expenses over that.

If you are a bit more of a control person, you can also request invoices/reciepts for expenses. 

RPM: We keep $500 in a trust account at all times, any expenses over $250.00 we contact for approval. We also have a full online accounting system for up to day accounting. 

5 – Monthly Statements: Does the company send out monthly or quarterly statements. I wouldn’t deal with anyone that does not provide statements.

RPM: We offer a fully interactive online accounting system, you will have access 24 hours a day 7 days a week 365 days a year. Full transperancy and access to statements, through our website www.rpmwestside.com

6 – Evictions: How does the company handle evictions? What are the costs to evict?

RPM: We have an Eviction Protection Program (EPP) for $12 a month. In the case of an eviction we would handle all charges and eviction process. Without the EPP you the owner is responsible for any eviction. Evictions can cost upwards of $800 plus.

7 – Yard Work: How much do they bill yard work out at? Landscaping?  Mow lawns? How much does each cost?

RPM: We offer full service on yard work & pool services rates vary on property. Call us for more info. 310.858.5514

8 – Reserves: What kind of reserve does the company require? The reserves are used in case anything comes up. Most managers will require a certain amount.

RPM: We require $500 per property. It goes in a trust account.

9 – Accounting: When will the manager mail your check to you? Beginning of the month? State laws usually dictate accounting rules for managers, but you  want to know all of this up front.
RPM: Checks are mailed by the 10th of the month to all owners. We also offer Direct Deposit for quicker transaction period.

10 – Vacancies: I’ve actually interviewed companies that will charge you 1/2 a month’s rent to fill vacancies in your property. I quickly ended my interview with these people. Normally there should be a marketing budget & it should be in the $150-350 range per month. . .

RPM: We charge $200 marketing fee. We aggressivly list your property on over 30 websites to rent/lease your unit in as little time as possible. We average about 18-22 days on the market before finding a tenant. (This vary's unit to unit & state of market)  We are also one of the few management companys that offer "open house 24/7" with our video tours of your property. It's more than just pictures.

11 – Advertising: Where do they advertise properties? Are for rent signs put on the property’s lawn? Do they advertise in the paper? Online? There are quite a few effective places to advertise properties for free, online. Do they use these? In addition, you want your property advertised effectively. What do they do to seperate your property from others?

RPM: We place rent/lease signs, we hold open houses, we offer video tours of property for 24/7 access to property and future tenants. We advertise on free & paysites ie: Craigslist, Renatals.com, WestSideRentals.com, LAWeekly.com, LATimes.com, Youtube.com & more.

12 – Section 8: Do they have experience dealing with section 8 properties / tenants? Do they know what is entailed with such properties?

RPM: We do not handle section 8 properties.

I also like to know how many properties they manage, how many managers work at the company, what specific areas they focus on, how long they have been in the business, and other questions about their experience. This should be a good start to get you going.

RPM: We have over 20 years experience in property management and all we do is property management we are not agents and we do not sell homes. Our office is locally owned and operated from the city of Beverly Hills California. We have four in house managers that are Westside LA experts.

 by Joshua Dorkin
If you have any further questions or if you want a free management quote please feel free to call us 310.858.5514 or info@rpmwestside.com