Jeremy,
Make sure you read the contract. That means EVERY WORD OF THE CONTRACT!!!!! If there is ever a dispute it always comes back to whats in the contract. Nothing else matters.
Here are some things to look for in the contract:
They have to give you 30 days notice, you have to give them 60 days notice to cancel the contract. Unfair. If you're unhappy with their service why should you have to wait 60 days to be rid of them? Why would they want to keep someone who's unhappy around for another 60 days? It doesn't take 60 days to unwind the bookkeeping.
They keep all the late fees. Unfair. You should get half the late fees each month at a bare minimum. If they get to keep all the late fees each month that creates a situation where its not in their best interest to collect YOUR rent on time. They can potentially make more money by collecting your rent late each month. That's not fair.
Who keeps the pet fees/deposits? Assuming you allow pets.
Look for anything in the contract that looks unusual.
Additional questions to ask:
When do you get your money each month? What day do checks go out? If they say, "between the 5th and the 15th" then find another company. They should know to the day how long it takes to cut checks each month.
Get them to show you a copy of what their statements look like.
What happens when a tenant pays late or pays AFTER the cut off date? Do you have to wait until the following month to get paid or will they make the deposit even after they print your monthly report and checks have already been disbursed for the month? Why should you have to wait until the following month? That wouldn't be fair. You're mortgages won't wait will they?\
Can they make electronic deposits to your bank?
How long have they been in business? Anything less than 10 years I'd stay away from.
Do they own property themselves? This may not be a big deal, but if they manage 500 units and 250 are theirs guess who's properties get filled first. Hint, it won't be yours.
Ask for a list of 10 of their clients you can speak with. Ask the clients how they like dealing with this company. Ask the clients when the money really gets disbursed.
Make sure that YOU do the interviewing. They're going to be working for you. Make them EARN your business and make them prove to you they know what they're doing.
Take your time, don't pick the first company because you're in a hurry. You'll regret doing that. Go with a reputable company who's been around for a long time.
Remember, nothing is set in stone and everything is negotiable.
Hope this helps.
Author
