Choosing a property management company is an important business decision. Typically, you’re stuck with the contract with the company you choose for at least a year, if not longer. Therefore, it is important to ask the right questions.

Are they local? Dealing with a company that is too far away means your property could be in danger of taking a backseat. Also, the more local knowledge the management company has, the better they can market your property to local tenants and manage it the way tenants expect. This can help make your property more desirable, which in turn can lead to higher rental rates in the future.

Can you give references? If they can’t, there are probably a horror story or two lurking in their management wings. Make sure the references you receive are to similar properties of the same type. Be sure to contact references once you have them and ask them the kinds of questions that concern you the most.

How long have they been in business? A start-up is always a risk, and it may not be the kind of risk you want to take with your business. A start-up is less likely to have references to talk to and could be prone to costly mistakes. On the other hand, a newer company might be very attentive to the care of your property, because they are grateful that you gave them a chance. This is not a deal breaker, it is just a consideration to consider before moving forward.

What is your accountability and follow-up process? Does the property management company have a dedicated process to keep you informed so you don’t get a nasty surprise? What processes does the company have in place to make sure that no detail escapes? How do they ensure that the proper documentation is submitted on time, for example? What is your late payment process? How do you prepare the property for new tenants in a timely manner?

What is your tenant screening and marketing process? You have two tenant goals. First, you want to find tenants who will pay their rent on time and avoid vandalizing your property beyond recognition. Second, you want to minimize the amount of time the property sits idle, waiting for the perfect tenant. What proactive steps is the company taking to ensure that these two vital concerns receive the attention they deserve?

Remember, you are hiring the management company to save you time, money, and headaches. Make sure your property management company doesn’t cause you new kinds of headaches by putting these answers together before you end up stuck with a contract you’ll regret.