This week we continue with our suggested list of questions to ask while interviewing property management company candidates for your property. The original blog post can be found here: How to Interview and Hire the Right Property Management Company for Your Apartment Building
We have put together a list of 12 questions to consider asking during the interview process with PM companies – questions #3 and #4 are below:
Property Management Company Interview Question #3
What is the term of the contracts between the property management firm and its’ clients? Are there any early termination penalties or fees? What type of notice must be given in order to dissolve the relationship?
In the event that the contractual relationship with the property manager does not work out, it is best to know up front what exactly it will take to walk away from the agreement. Remember: as with all contracts, everything is absolutely negotiable. If the termination clause is unreasonable, let the property management company know and try to settle upon terms that are agreeable to both parties.
Property Management Company Interview Question #4
Does the property management firm have its’ own in-house maintenance crew? Or does it contract out all maintenance and repairs?
If the maintenance crew is in-house, what does the property management company charge per hour for repairs? Does it mark-up materials?
If the maintenance is contracted out, does the property management company mark-up the invoices from the contractors or charge any type of fee? How are the outsourced contractors screened and selected?
The purpose of this line of questioning is to ensure that any hidden or embedded maintenance costs are disclosed from the beginning so that there are no surprises when the first monthly statement arrives. Furthermore, if the property managers are hiring third party vendors to service and maintain the investment property, it is advisable to find out if licensed, bonded and insured contractors are being hired.
Have a great week,