How to Select an Ideal Property Management Company – 10 Key Questions to Consider

Selecting an ideal property management company for your community can be a challenging task. In markets with a plethora of residential management firms, they might appear quite similar on the surface. It's important to identify the best-fit company for your community's unique needs by asking the right questions during your consultations with property or homeowner association (HOA) management firms.

1. Inquire about their experience in property management

Choosing a property management company with a stable history means they will be around for the long haul, bringing a wealth of experience to the table. An experienced company can navigate legal, accounting, emergency response, and maintenance challenges effectively because they have dealt with such issues before.

2. Evaluate the number of properties they manage

While there are no absolute rules here, a company managing fewer properties might have more time to devote to your community. Smaller firms often promise personalized service, but they may also struggle with resource constraints. Larger companies typically have more staff and resources, enabling them to provide comprehensive service and backup support.

3. Assess the management team's accessibility

Availability is a critical aspect of a good service. Partner with a company that is easy to contact and resolves issues promptly with well-informed decisions. The best companies offer multiple communication channels, including email, phone, and community portals, alongside property management software for streamlined communication.

4. Request references

A quality property management company can provide customer references and reviews that showcase their service standards. Focus on feedback about services critical to your community, and seek references from properties similar to yours.

5. Examine the contract terms

Typically, property management contracts last one or two years and may include early termination penalties. Reviewing the contract terms is crucial to understand potential penalties and benefits associated with annual renewals.

6. Clarify the services included in your contract

Different companies define “full-service residential management” in various ways. Ensure you know what services are covered in your contract. Investigate whether the quoted price is all-inclusive or if extra fees apply for additional services. Understanding your financial commitments upfront is vital, and inquire about other resources like legal and human resources support.

7. Discover the manager selection process

Every HOA community has unique characteristics. A good property management firm should have a systematic approach to match a manager to your community’s specific needs. For instance, if your community has residents who speak a foreign language, the firm should provide a manager fluent in that language.

8. Review the property manager’s qualifications

The manager who handles your community’s daily operations must have the right qualifications and training. Look for companies that offer experienced management teams, ongoing educational opportunities, and board member training. Verify that the property manager has current memberships and training to keep up with changing regulations.

9. Investigate maintenance procedures

An outstanding management company should have clear procedures for handling maintenance and emergency situations. Check if they have a dedicated maintenance crew and work with vetted vendors. Find out if they obtain multiple quotes and manage costs effectively on your behalf.

10. Confirm their communication practices

Seek a company that offers regular updates with monthly reports and statements. Verify whether they attend board meetings and stay informed to provide optimal service. Ideally, the management company should be accessible 24/7 with a customer care center to handle routine questions efficiently, allowing the manager to focus on managing the property effectively.