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Five Questions to Ask before Selecting a Property Management Company

Leadership and experience, coupled with a thorough understanding of the local market is essential to success. Select a property management firm that understands vital information like local market trends, census figures, employment rates, and where people are moving to and from. This knowledge affects rental rates, marketing strategies, and much more. In addition to local market knowledge, investors should also ask about the level of experience with the specific multifamily product type, such as senior housing.

You’ll want to know who will manage your asset, their knowledge of the market, and how close—or far—from the site they will be. At Lloyd Jones Multifamily Management, a regional manager is assigned to each asset and is responsible for successfully implementing the investment plan created at the time of acquisition. Each regional manager brings depth of experience in the local market, bringing “boots on the ground” expertise to every asset. In addition to our superior team of regional specialists, the executive vice president of the property management division is personally involved in each of the assets that we manage.

Ask how the company supports day-to-day work efforts and how that ties to the overall mission, vision and business plan of each asset. Lloyd Jones Multifamily Management uses the renowned Grace Hill training platform for industry standard training in addition to in-house courses and NAA and IREM courses. Our in-house marketing department supports our onsite teams with all the tools they need for resident lead generation, lease-up and reputation management. To ensure the timeliness and quality of property maintenance, we have a regional maintenance supervisor, which adds another level of oversight that builds investment value.

Hiring the right property management company that will provide accurate, detailed financial reports so that investors can track their financial goals is vital. You’ll want to know what information is provided, who prepares it, and how often you’ll receive financial updates. At Lloyd Jones Multifamily Management, every owner receives a CPA-prepared detailed monthly financial package. This comprehensive financial report includes an executive summary, monthly income and expense statement, general ledger, accounts payable, tenant receivables, and copies of monthly bank statements with reconciliation. We also use Yardi software, one of the most respected platforms in the industry, which connects to accounting, finance and other business units to provide detailed data on the daily operations and strategic performance of an investor’s real estate portfolio, property by property. In addition to our own monthly financial reports, each asset is audited annually by a third-party firm.

Ask what controls are in place to ensure budgets are on track, bills are paid in a timely manner, and costs are contained. Our purchase order system is tied to each property’s budget; any purchase that is outside the budget requires approval from either a regional manager or the executive vice president, depending upon the amount. All accounts payable are processed through a centralized billing system rather than onsite, which frees up our business managers to focus on property management, maintenance and resident satisfaction. In addition, we also have fraud banking controls in place that are monitored in-house daily.