When you’re looking for property management in Phoenix, there are a few important questions you can ask that will make a difference. Today, we’re helping you make a good decision by sharing some of the types of questions that will be helpful to you. It is a big decision as your property manager will be taking care of your investment for several years. Pick the right person to work with.
Vacancy Rate
Find out how many days their properties are on the market before a tenant is found. You will probably want to see a vacancy rate under 30 days. Any more than that, and it’s going to eat into your cash flow and profits for the year. Ideally, your manager will find a tenant in a couple of weeks. That tells you they can market the property correctly and have a good selection of tenants to choose from.
Renewal Rate
A manager’s renewal rate will tell you how long your tenant is likely to stay in the property. This is affected by the service level provided to the tenant. If maintenance is handled promptly or there’s an online portal and other conveniences, the tenant will stay longer. A good renewal rate should be no less than 50 percent, meaning the tenant will only move every other year, so you don’t have to pay too many turnover costs. If you can get closer to 75 percent in a renewal rate, that’s huge savings for you.
Maintenance Costs
Ask if the management company makes money on maintenance. You’ll want to know what kind of hourly rates they pay their handymen and contractors. You can ask about upcharges on the maintenance calls they handle.
Service and Technology
Find out what services they provide. You’ll want to know if there’s an online portal and if they send money electronically. When will you be paid and when are funds cycled? If a tenant is late, will you still be paid that month or will you have to wait for the following month? Ask for referrals and look at their Google rankings and BBB rating. Ask how they advertise and what kind of technology they use. Find out how they inspect properties, and whether they utilize video with their inspections. Ask about screening and whether they are a company that’s available 24/7.
Continuing Education
Make sure they stay up on their education. Your property manager should know the current laws. If they are members of the National Association of Residential Property Managers (NARPM), you can be assured they are taking regular education classes. Managers must stay up on their courses to be able to be part of NARPM. There hold designations, that is also helpful: you know you’re dealing with a professional.
If you have any questions about finding Phoenix property management, please contact us at Service Star Realty.
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