There are a number of questions that you need to ask when you are looking to hire a residential property management company to oversee your investment and rental properties. Some of these questions pertain specifically to money. Here are a few of the financial-based questions that you should always ask as you look to hire a new residential property management company for your investment properties. 

How Much Can You Rent A Property Out For? 

One of the first questions you should ask as you look to hire a residential property management company is how much they think they can rent your property out for. Ask them why they feel that that amount is the right amount. A great company should be able to tell you how much similar properties have rented out for in the area and why your property should get more or less than those other properties. 

How Much Do You Charge For Your Services? 

Another important question to ask a residential property management company is how much they charge for their services. Some companies charge a flat rate, while others may take a percentage of the rent. Also be sure to ask about other services, such as evictions and repairs. Does the property management company pay for these and bill you later or do they ask that you pay upfront for these extra services? 

Do You Charge a Cancellation Fee? 

One of the lesser-known questions that you need to ask a residential property management company is if you are locked into a contract with them. If you are, be sure to ask how long the contract is and what the cancellation fee is. 

Do You Handle Tax Forms?

Lastly, be sure to ask a residential property management company if they handle the tax forms or if you are required to handle the tax forms. Many residential property management companies handle tax forms, such as 1099s, to vendors who worked on your property. However, not all of them do. Some require you to handle the tax forms. Asking this question helps you know what is expected of you and the property management company. 

With some many property management companies available, it can be hard to decide which company to hire. Asking the right questions can help you narrow down the residential property management group that is right for your needs. When it comes to investment properties, money is always important, so knowing the right financial questions can further help you when it comes to finding the right company. Call local property management companies today and ask them these questions to help you hone in on the right residential property management company for your needs.

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