Once you have made the decision to hire a property management company to rent out your house, rather than do it yourself the first step is to find the best company for your property and purposes.

With many property management UK choices available, you will want some solid screening tools to help ensure you make the right choice, particularly if this is your first time venturing into the challenges of property management. You may even be asking yourself about the specifics of “what do property management companies do?”

The questions below will help give you an overview of what you, as a property owner, will want to know before signing a contract with any company.

With these seven question categories, you should be able to shine a light on every important aspect of selecting and hiring a property manager.

1. What are the Costs and Fees for Managing My Property?

This one is literally a “bottom line” question at its core. It is not uncommon for property management companies to charge a percentage of the rent income as their payment. Ten percent is a usual cut, although the specifics and terms may vary depending on the type and location of your property.

One advantage to a percentage approach is the fact that you know without a doubt that the property management company is invested in making your property pay out as high as possible.

If there are additional fees or administrative costs, make sure you have a clear accounting of what those are, as well as how and when they will be charged.

For example, is there a separate fee for the process of screening prospective tenants when it is time to let your property? How are the costs of service, maintenance, and repairs handled?

You might even inquire about seeing the accounting for one of their existing clients with a similar type of property. The management company should be able to show you those numbers (with the other client’s name redacted for confidentiality, of course) so you can see if anything raises questions for you or needs explanation.

In short, a complete detailed breakdown of what is included and, just as important – what is NOT included and why. So no nasty surprises.

2. How Does Your Company Handle Information Sharing and Communication with Clients?

Communication may be the most important component in the relationship between client and company, so ask how this company shares information with its clients. Remember, a successful business relationship depends on quick, clear and concise communication between all parties at all stages.

If you were to have questions about your property or tenants, or if you wanted to see the details of a maintenance job or the last few months’ accounting files, how easily could you get that information?

Some companies use online property management software, which can allow the client to do a remote check in and see the details of what might be going on with the property. If you do not have access to an information system like that, whom would you contact, and how are they with timely responsesss and helpful communication.

3. Specify the Certifications and Licensing and legal requirements that the industry requires of property managers, and how your company and team members meet those requirements. Describe the industry experience of the agents who are likely to be involved with my property, as well as the company’s overall track record with managing similar properties.

Addressing licensing and certification for your geographic area, you can easily double check what is required, so the real meat of this question is the second part regarding qualifications of team members, not to mention the company itself.

Don’t stop with licensing, though; you should also dig into experience:

How long has the company been in business?
How broad is its operation, and how many properties has it handled – specifically in your area? Regarding specific agencies who are likely to be working with you, what training and education and experience do they have in the industry?

4. What Services does your Company provide that my property could benefit from?

Most likely you will be asked specific questions about your property, and your plans and vision for that property. Once they have a feel for your needs, they should be able to outline all the services that will suit your individual account.

These may include items like employment of on-site staff or gardening and property maintenance, on top of the obvious aspects like attracting and interacting with tenants.

They may even offer relevant services that hadn’t yet crossed your mind, so prepare yourself to be pleased with the range of services they offer.

Are they regulated, and if so by whom?

5. Explain your Company’s process and procedures for handling tenants.

One of the most challenging aspects of property management is undoubtedly the issue of handling tenants.

The process begins with marketing and advertising the property to let, moving through screening, referencing and background checks of applicants, continues on to the legalities of terms and conditions, lease signing, together with the ongoing process of collecting rents and addressing any issues as they arise.

Inquire about the company’s protocol for the situations you hope not to face (non-payment of rent, evicting a tenant etc) as well as those you know you will face.

6. Describe MY obligations and responsibilities if I employ your company to handle my property.

You don’t want to be caught off guard by unexpected obligations regarding your property, any more than you would want to be surprised by unexpected fees on your account (see 1. above)

Ask about your involvement in the business of managing your property, and establish for yourself whether you are comfortable with the upcoming interactions.

Whether you hope to have direct input and be consulted as issues arise, or whether you hope to be able to let your property be handled without spending your own time to do so, make sure that your expectations match what this company can offer.

7. What guarantees and contracts do you employ?

Before you sign up, ask to see blank copies of the contracts this company uses. That includes not only the client contract that you would sign, but also the leases they use with tenants, contracts with service workers, and other related legal documents.

Reading through these can give you a good overview, and might even lead to questions you hadn’t yet thought to ask.