馃攳
5 Questions You Should Ask a Property Management Company | Investing for Beginners - YouTube
Channel: Redacted
[0]
the five questions you should ask a
[1]
property management company that's
[3]
today's video let's dive in hey everyone
[9]
I'm Clayton Morris the president and
[11]
founder of Morris invest long time real
[13]
estate investor and today we're going to
[15]
talk about the five questions you should
[17]
be asking your property management
[19]
company before you hire them let's dive
[22]
into it number one how do you screen
[24]
your tenants I mean it seems like a
[26]
common question right a pretty simple
[28]
one but it's one of the most important
[29]
questions how do you screen your tenants
[32]
take me through your process for me
[34]
we'll work with a property management
[36]
team we work with a couple of fantastic
[38]
ones that they will do full criminal
[40]
background checks they'll verify
[42]
employment
[43]
they'll call up their previous landlords
[45]
to make sure that they pay on time they
[48]
do the credit check of course they do a
[50]
an eviction check so they make sure that
[52]
they don't have evictions on the record
[53]
or late payments on their record so we
[56]
have really great tenants in all of our
[58]
properties so that's not something I
[60]
worry about they pay on time here's a
[62]
perfect example of a tenant we just put
[63]
in one of our properties 17 years with
[66]
the US Post Office she's got two
[68]
daughters so 17 years as a postal
[71]
employee hard worker loves the property
[73]
that's the type of tenants that I want
[75]
in my property number two the second
[77]
question you should ask them is what
[79]
percentage of monthly rent do you charge
[82]
you know a common number is between 8
[85]
and 12 percent sometimes 6 and 12
[87]
percent a common number from you're
[89]
always going to kind of hit on is around
[90]
that 10 percent so 10 percent of monthly
[93]
rent is a common number that you can
[96]
expect to pay your property management
[97]
team and it's a number that I'm happy to
[99]
pay them they manage everything they
[101]
take care of everything they collect the
[103]
rent they take the phone calls if
[104]
there's maintenance problems with the
[105]
property they handle it that 10% is more
[108]
than worth it
[109]
the third question you should ask your
[111]
property management company is what
[113]
happens during an eviction now this is a
[116]
something you don't want to have to
[117]
think about but it does happen evictions
[120]
happen I've personally never had an
[122]
eviction knock on wood
[124]
but you know you want to find out from
[126]
your property management team are they
[127]
prepared to handle it and of course they
[129]
should be right they should be able to
[131]
go down to court on your behalf
[133]
they should be able to file the
[135]
paperwork and they're going to see it
[136]
through to make sure that that tenant is
[138]
out of the property whether they have to
[140]
work with the court get the sheriff in
[143]
there to remove them and remove their
[144]
stuff if they don't leave on their own
[146]
it can get tricky in certain states and
[149]
that's why you also want to ask your
[150]
property management team you know how is
[153]
it a landlord friendly city a landlord
[155]
friendly state that I'm dealing with
[157]
here or how long are they going to take
[158]
to get this evicted tenants out of the
[160]
property if you're in New Jersey or
[162]
Florida the both sides of places it can
[164]
take a long time but that's why you know
[167]
I would like to work in Landlord
[168]
friendly states where it can move very
[171]
very quickly if you had to get a tenant
[172]
out of the property so some key
[175]
questions to ask your property
[176]
management team about evictions and
[178]
question number four you want to ask
[180]
your property management company what
[182]
happens during a tenant turnover now the
[185]
property management teams that I've
[186]
partnered with what I love about working
[188]
with them is that we just they just
[190]
charge us the at cost amount to do a
[195]
tenet turnover so paint carpet drywall
[198]
touch-up those types of things because
[200]
they have those materials ready to go
[202]
use the same paint have the same carpet
[204]
then they're able to get in there
[206]
quickly do that tenant turnover shuffle
[208]
do some touch-up clean it up and get it
[211]
ready to go and get that next tenant in
[214]
the property how long will that normally
[216]
take and are they going to charge you
[218]
for it our property management teams
[219]
that we work with don't charge us the
[221]
labor on that they did we just do the at
[223]
cost version of the materials and so
[227]
that's why you know you you can ask
[229]
those questions and you can find out if
[231]
you can find a property management team
[232]
that will do that for you are they going
[234]
to nickel and dime you for every little
[235]
thing you know that's something to
[238]
consider I don't work with I don't work
[240]
with companies like that so ask that
[242]
question you know what happens on a
[243]
tenant turnover how much can I expect to
[245]
spend for me it's like $300 on a tenant
[248]
turnover you know like paint carpet
[250]
drywall that's your in and out and
[253]
cleaned up the property and ready to go
[255]
for the next tenant and the fifth and
[256]
final question you should be asking your
[258]
property management team what is the
[259]
vacancy rate in this city it's a
[262]
question you might not know the answer
[263]
to if you live especially if you live
[265]
out of state you live across state lines
[267]
what is the vacancy rate you know you
[269]
may find that the vacancy rate is a
[271]
little bit you know higher than you
[274]
anticipated maybe that's an indicator
[276]
that you shouldn't be buying properties
[277]
in that city for instance where I buy
[280]
most of my properties around 4 and 5%
[282]
vacancy rate 6% vacancy rate that's
[285]
below the national average I think about
[286]
7% but you go to certain cities like
[290]
Little Rock Arkansas or Memphis
[293]
Tennessee or winston-salem and you have
[295]
18 19 20 percent vacancy rates so
[299]
important question to ask your property
[301]
management team
[302]
what is the vacancy rate how quickly can
[304]
we get these properties up and rented
[306]
there's a look at five questions you
[309]
should be asking your property
[310]
management team before you start working
[311]
with them I'm Clayton Morris thank you
[313]
so much for subscribing if you haven't
[314]
already done so please click the
[316]
subscribe button right here and become a
[319]
member of this great community I love
[321]
working with real estate investors and
[322]
hearing your stories please share your
[324]
comments in the thread below we publish
[326]
videos multiple times a week so we'll
[329]
see back here next time everyone go out
[330]
there take action and become a real
[332]
estate investor
Most Recent Videos:
You can go back to the homepage right here: Homepage