How to Screen a PMC BETTER Than a Tenant – Part 1: Services & Processes
Making the wrong decision on a potential tenant can cost thousands in lost rents, damages and legal fees. Making the wrong decision when selecting a Property Management Company (PMC) can cost even more.
That’s why picking the right PMC requires diligence, precise questioning, and a critical eye for services and processes.
This guide will explore what to look for in a property management company’s procedures and how to effectively screen for the best fit.
Why Procedures Matter
Exceptional service starts with a well-defined company culture that focuses on operational excellence.
This foundation leads to pursuing industry expertise, continually improving processes, documenting experiences, and learning from them.
But for owners, the primary focus should be on processes & procedures, since they reveal how well a PMC can deliver on its promises.
What makes a procedure good?
A solid procedure simplifies complex problems and ensures clear, actionable solutions. It’s born from experience and knowledge, designed to consistently deliver positive outcomes.
The challenge for a property owner is to evaluate not just what the PMC promises, but how they plan to execute those promises.
Evaluating a PMC’s Tenant Screening Processes
Screening tenants can make or break your rental property investment.
A good PMC should have comprehensive Standard Operating Procedures (SOPs) tailored to ensure only reliable tenants are selected.
Questions to Ask About Tenant Screening:
- Application Process: What information must applicants provide?
- Employment & Income Verification: How do they confirm income stability? Is it the standard “income must be 3x the rent,” or do they have a more robust method?
- Rental History Checks: How do they verify leasing history, and what red flags do they consider unacceptable?
- Fraud Detection: What systems are in place to identify fraudulent application materials?
Why This Matters:
A strong tenant screening process minimizes defaults, evictions, and tenant-caused damages. A DIY landlord might rely on surface-level checks, but a professional PMC should go deeper, ensuring you avoid preventable future headaches.
Maintenance Management
Property maintenance is a frequent pain point for landlords. Transparency and documentation in maintenance processes are critical to avoid unnecessary expenses and tenant dissatisfaction.
Questions to Ask About Maintenance:
- Approval Process: When is your approval required for repair work?
- Proof of Necessity: How will they document that a repair is needed?
- Cost Options: When do they provide alternative solutions (e.g., a short-term fix vs. a longer-term investment)?
- Bidding Requirements: At what price threshold are multiple bids required, and how are they presented to you?
- Completion Verification: How do they prove work was completed correctly?
- Tenant-Caused Damages: How do they assess and document if a tenant is responsible for damages?
Why This Matters:
Transparent, well-documented maintenance procedures allow owners to make informed decisions and avoid being blindsided by unexpected costs or poor-quality repairs.
Handling Past Due Rent Balances
Late rent payments and past-due balances can disrupt cash flow, making their efficient management essential. A PMC’s processes for addressing this directly impact your bottom line.
Questions to Ask About Past Due Payments:
- Payment Updates: How will you be notified when payments are made?
- Past-Due Tracking: Where can you view tenant balances?
- Eviction Notices: When are eviction notices issued, and what is the process?
- Payment Plans: Do they have a formal system for establishing and managing payment plans?
- Eviction Follow-Up: How will they update you on legal processes?
- Eviction Costs: What are the fees for eviction processes?
- Collection of Unpaid Balances: If a tenant leaves with unpaid rent, how does the PMC handle collections?
Why This Matters:
An organized, proactive approach to delinquent rent ensures you aren’t left holding the bag when tenants fail to pay.
Rental Marketing Strategies
A property sitting vacant for too long drains profits, so your PMC’s approach to marketing the property significantly affects your income.
Questions to Ask About Marketing:
- Advertising Channels: Where will they advertise your property?
- Rent Justification: What data do they use to determine the rental amount?
- Owner Input: Can you review or adjust the rent amount and listing before publication?
- Proof of Marketing: How do they prove the property is actively advertised?
- Update Frequency: How often do they report on rental activity?
- Activity Insights: What specifics do updates include (e.g., inquiries, views, showings, applications)?
- Contingency Plans: What happens if the property remains vacant too long?
Why This Matters:
Promising to rent a property quickly is easy; delivering on that promise requires a solid marketing strategy and measurable updates.
Final Thoughts
Managing rental properties is demanding, and the right PMC makes all the difference. Processes and procedures form the backbone of good property management, offering consistency and clarity during challenging situations.
That’s why asking a PMC for specifics about their SOPs during the interview process is critical.
Your work doesn’t stop here, though. Procedures are just one aspect of a PMC’s overall performance. Stay tuned for Part 2 of this series, where we’ll explore how PMCs should approach communication and documentation.