As a landlord, the decision to engage an experienced property management agency is a significant one that can affect your rate of returns. Engaging a trustworthy professional to manage the day-to-day responsibilities of owning an investment property can relieve you of stress and give you back your time – with all this in mind, it is crucial to choose the right property manager to represent you.

Here are the top 8 questions you should ask before selecting a property manager.

1.    Who will be my property manager and how long have they been with the company?

In most cases, your first conversation will be with a business development manager who will provide you with an overview of the company, agency fees and service guarantees. They should then connect you with the property manager who will be looking after your investment property. One of the most crucial questions to ask your prospective property manager is how long they have been with the agency. Due to the stresses of property management, staff turnover in the industry is high so you’d want to ensure longevity of dealing with the same person.

Here are a few questions to ask the property manager:

• How long have you been a property manager?
• How many years have you been with the current agency?
• Are there recent testimonials that you can share?

2.    How Do You Screen Tenants?

Tenant screening is a critical aspect of property management. Ask about the agency’s tenant screening procedures, including checks on the national tenancy database, rental references, and criminal or social background checks. A thorough screening process helps minimise the risk of problematic tenants and late payments.

3.    What is Your Vacancy Rate and Average Time to Fill a Vacancy?

Understanding your property manager’s history in minimising vacancies is important for maintaining a steady flow of rental income and maximising your returns. An experienced and dependable agency should have low vacancy rates and the ability to quickly fill any vacancies with a quality tenant.

4.    How Do You Manage Maintenance and Repair Requests?

Maintenance requests can arise at any time, and a property management company should have a clear protocol for addressing these in a quick and professional manner. Ask about their network of trusted contractors and how they communicate with you about maintenance concerns and associated costs.

5.    What is Your Approach to Rent Collection?

Timely rent collection is essential for the financial cashflow of your investment property. Delve into their procedures for rent collection and their strategies for addressing late payments. A proactive approach to rent collection is a key indicator of a dependable property manager.

6.    Can You Provide References from Current Clients?

Connect with current clients to gain first-hand insights into their experiences. Request references and ask about the company’s responsiveness, professionalism, and overall performance in managing rental properties. Online reviews, especially on platforms like Google, can provide a unbiased perspective on the company’s reputation and service levels.

7.    How many property inspections do you conduct per year, and what is the cost?

The frequency of routine inspections depends on the legislation for your state. You want to ensure that they are conducting the maximum that’s allowed, which in WA is four each calendar year. Ask about the level of detail the provide in their reports and if they take photos for each report.

This is also a great time to ask them whether landlords can access an electronic statement or if they do things the old-fashioned way with mailed financial statements. As communication is key to any good property management practice, it is expected for property managers to return calls or emails within the same day. If they do not have this basic policy in place as part of their service levels, it may be time to look elsewhere.

8.    What is Your Fee Structure?

Whether it is a percentage of the monthly rent or a flat fee, be thorough in understanding the costs associated with their service. Ensure the fees are clearly defined and be sure to enquire about any additional fees or charges for items like advertising, inspections, or lease renewals.

Choosing the right property management company in Perth is an important decision that requires thoughtful consideration and by asking these fundamental questions, you will gain a better understanding and have greater confidence of the company’s capabilities, experience, and reliability. Taking the time to select the right property manager not only alleviates the burdens of property management but also sets the stage for the long-term success of your property investment portfolio.