How to Screen a PMC BETTER Than a Tenant – Part 2: Communication & Documentation
Communication and documentation form the backbone of a good working relationship between property owners and their Property Management Company (PMC).
When mismanaged, these areas can lead to unnecessary frustrations, misunderstandings, and costly mistakes.
This article dives into why you should screen PMCs for strong communication and documentation systems and provides insights on how to do it effectively.
The Importance of Communication in Property Management
When a PMC fails to proactively and consistently communicate, it often forces property owners to chase down information or rectify misunderstandings.
This not only wastes time but also creates unnecessary stress.
A good PMC should prioritize clear, timely, and transparent communication to avoid confusion and ensure owners feel informed and confident.
For example, effective communication will keep you updated on tenant-related changes, maintenance needs, or financial situations without you having to micromanage them. A well-communicated relationship also means resolving unexpected issues efficiently, minimizing the potential for major disputes.
Key Communication Questions to Ask a PMC
To ensure a smooth working relationship, ask these questions to evaluate a PMC’s communication approach during the screening process:
- How do you track communication (calls, emails, texts) to avoid misunderstandings?
- Do you provide access to an online platform where owners can monitor property updates?
- Are phone calls recorded for reference?
- When and how will you update me about the following:
- Progress in leasing vacant properties
- Maintenance issues and milestones
- Missed rent payments
- Evictions and legal issues
- Serious tenant complaints
Consistency matters here, too.
Consider how communication breakdowns could lead to unresolved maintenance problems, missed deadlines for lease renewals, or even legal troubles.
A good PMC will be comfortable discussing their communication Standard Operating Procedures (SOPs) and providing clear answers, not vague reassurances.
Why Documentation is a Deal-Breaker
Just as with communication, proper documentation ensures that you’re never left in the dark or scrambling for important reference materials. A well-organized PMC should be able to provide you with comprehensive, timely documentation regarding your properties.
For example, think about the last time you needed a copy of a lease for tax or insurance purposes.
What happens if your PMC can’t locate it or tells you they’re unorganized? You could face costly delays or issues.
This is why hiring a PMC with strong documentation processes is critical to safeguarding your rental portfolio.
Documentation Essentials Every PMC Should Provide
Here are some must-have documentation processes to evaluate when screening a PMC.
- Organized Document Storage:
- Ask how they store and categorize documents, such as lease agreements, inspection reports, and maintenance invoices.
- Ensure this system allows for easy access when you need information quickly.
- Delivery Methods:
- Confirm how they send you documents (email, online portal, etc.) and in what format.
- Ensure the delivery method is convenient and allows easy review or retrieval later.
- Routine Reports:
- Ask for a list of the documents they automatically provide (e.g., monthly statements, tax summaries, rental ledgers) versus ones you need to request.
- Tech Capabilities:
- PMCs still relying on outdated, paper-based systems may struggle to deliver consistent information. Look for companies who use modern technology, such as 24/7 online portals for instant document access.
Key Documentation Questions to Ask a PMC
To assess a PMC’s documentation processes, ask these essential questions during your search for the right fit:
- How do you organize and store property-related files and documents?
- What documents will you provide regularly without request?
- How do you deliver documents to owners (email, physical mail, online access)?
- Do you have an online portal where I can access leases, applications, or financial statements anytime?
- How quickly can you provide reports or financial breakdowns when requested?
- Can you share a sample of the monthly owner statement or income report for review?
- What financial formats do you provide for tax purposes?
These might seem like small details, but poorly executed documentation can lead to frustration, especially in urgent situations.
A top-tier PMC will provide you with consistent, reliable access to all necessary files to give you peace of mind.
Why Tech-Savvy PMCs Are a Must
Reliance on outdated systems is a red flag.
PMCs without robust digital tools struggled during the disruptions of COVID-19, leaving property owners stranded during critical times. Forward-thinking PMCs, however, use technology to stay consistent—even during remote operational challenges.
Opt for a company that is 100% paperless and offers instant access to information such as live financial reports, recent maintenance logs, tenant histories, and more. This level of service streamlines operations and ensures you’re always up-to-date on your property’s status.
Stay Tuned
Your search for the perfect PMC doesn’t stop here. Watch out for Part 3 of this series, where we’ll focus on evaluating management agreements to ensure you know exactly what you’re signing up for.
What are your tips for evaluating a property management company’s communication and documentation systems? Share your experiences in the comments below!