April 27th, 2021

When looking for a new property management company or to use the service for the first time, it is important to do your homework before signing any contracts. The level of service and price for those services can vary drastically from company to company, and some managers won’t answer all of these important questions without you asking first. At South Bend Management Co, we believe transparency is a fundamental characteristic of a property manager, so here is a list of 5 questions you need to ask before hiring a management company.

What Services do You Provide?

Property management companies can offer a wide variety of services and you need to know what you’re getting before you sign up. While most will collect rent and handle maintenance requests and billing, other services such as eviction processing and 1099 tax reporting might not be included in your monthly fee. Typically leasing and lease renewals will be an additional fee, as will annual inspections and quality checks. Some unique services South Bend Management Co offer include an annual ‘Safety Package’ including furnace filter replacements, smoke and CO detector battery replacements, dryer vent cleaning, water-main shutoff valve checks, among other items. A list of our services can be found here.

Are Your Monthly Fees Assessed on Rents Collected or Rents Scheduled?

If a property manager collects their monthly fee based on scheduled rent, they are not incentivized to do everything they can to bring income into your property. Why would they? Whether or not the tenant pays, they collect their fee. At South Bend Management Co, we only collect on rents collected, so we earn our fees when you earn your revenue.

Where are Vacant Units Listed for Rent?

Good tenants with solid leases are what produce income for an investment property. Therefore it is imperative that vacant units reach the widest range of candidates possible to provide the most options for a new tenant. Property managers should be listing vacant units on the local MLS, the top online listing services such as Zillow, Apartments.com, Trulia, etc, Facebook Marketplace and Craigslist to name a few.

Am I Signing a Long-Term Contract?

Different companies have different management agreements, and you want to be sure you know how long you’re obligated to a new company. Our management agreement is a 1 year agreement without an automatic renewal, so you can chose to move on from our services if you are not satisfied. A 30-day cancellation policy also allows you to get out of the contract before that 1 year is up.

How Long Can I Expect My Unit to be Vacant?

Vacancy times vary geographically, based upon the class of apartment, and the economy but your property manager should know an estimate of the local vacancy times. Having a pulse on the rental market is essential to pricing vacant units, knowing when to do upgrades, and finding the best tenants available for that class of apartment.

Have any additional questions? We would love to tell you all about our services and fees! Get in contact with us today.

“This article, and the South Bend Management Co Blog in general, is intended for informational and educational purposes only, and is not financial advice. South Bend Management Co is not providing investment, tax, financial planning, legal, or real estate advice. South Bend Management Co is not your advisor or agent. Please consult your own experts for advice in these areas. Although South Bend Management Co provides information it believes to be accurate, South Bend Management Co makes no representations or warranties about the accuracy or completeness of the information contained on this blog.”