What questions to ask property management companies when interviewing for value-add


#1

How would you go about interviewing a property manager for a value-add property? Let’s say it’s 200-units and you plan on doing a rehab of about $7,500 per door. What questions would you ask them to see if they’re the right property manager to take on not only overseeing the rehab but also manager the property.

Thank you!


#2

I would recommend you ask the below questions

  1. What services do you offer? (leasing, maintenance, accounting, etc?)
  2. What size and type of properties do you typically manage?
  3. How many properties do you manage?
  4. What property management/accounting systems do you use?
  5. What are your fees and what is included?
  6. How are they licensed and insured?
  7. Do you manage or own properties in the area and if so how many and where?
  8. How many property managers do you have and how many properties do they manage?
  9. How long have you been in business and do you have references? (make sure you call them)
  10. What is the average length of time you have managed your client’s properties for?
  11. What type of information and reports do you provide your owner on a monthly basis?
  12. What is your marketing plan for the property and how do you typically market similar properties?
  13. How do you charge for repairs and maintenance?
  14. What is your average vacancy?
  15. Do you have a copy of the management agreement that I can review?
  16. What are your tenant qualifications and how do you screen them?

#3

Thank you! Tremendous


#4

also ratio of prop mgrs to regional mgrs of a mgt company… I know for a fact this can vary WIDELY… and hence the quality / attention to detail of a particular area mgr if taking on too many properties under their aegis, will make added headaches for the asset mgr (aka GP or deal sponsor).


#5

Great questions Josie. Thanks!