Choosing a new property management company for a homeowners' association or a rental property is an important decision, involving many considerations and questions. You should choose these questions carefully to ensure an efficient selection process. This article explains why it can often be better to ask fewer, but more targeted questions.

Fewer questions are better

Successful property managers are highly selective when taking on new properties, especially given the current shortage of skilled staff in the sector. For a property manager, a long list of questions suggests a "difficult" group of owners, which they would prefer to avoid. This is because they may worry that the owners will continue to demand a lot of time, making the contract unprofitable.

Rule of thumb for detailed questions

The size and profitability of the property play a decisive role in how detailed your questions to a potential property manager can be. Larger, more lucrative properties allow you to ask detailed questions, whereas you should hold back a little with smaller properties.

Questions for the new property manager

The questions you ask candidates will depend on whether you are looking for management for a homeowners' association or a rental property. Some questions apply to both, while others are specific to association managers or rental property managers.

Common questions for both association and rental property managers

• Review of property and documents: Did the manager review the property and its documentation before submitting the proposal?

• Staff numbers and workload: How many staff does the company employ, and how many units is each person responsible for?

• Dedicated contact and qualifications: Will there be a dedicated contact for the property, and what are their qualifications?

• Technical staff: Does the management company also employ staff with technical training?

• Digitalisation: How digitalised is the company in its day-to-day operations?

Questions for association managers only:

• Management contract and appointment: Can the management contract be tied directly to the appointment?

• Timing of the annual owners' meeting: By what date is the annual owners' meeting held?

• Meeting location: Where do the owners' meetings take place?

• Distribution of minutes: How long after the meeting are the minutes sent out?

Questions for rental property managers only:

• Probationary period: Can a probationary period be agreed in the management contract?

• Setting rent levels: How is the rent level determined?

• Letting and advertising: Do you handle the letting process, and where do you advertise vacant properties?

• Vacancy periods: How long do rental properties typically stand empty?