Property Management Costs
I have a property manager that is managing my first rental. They have found a tenant(s) and have already collected a security deposit from the tenants. I am happy that some tenants were found, but I was wondering If I had the right to look over the tenannts information i.e rental history, credit report ...etc. Are the property managers supposed to collect a depsoit from the tenants before seeking my approval? The reason why I am slightly worried is that these tenants are 21 and 22 years old and I am worried that they might be looking for a "party" house rather than a home. Believe me I am really glad to even get some tenants, but I have read numerous times on this forum that bad tenants are worse than no tenants.
Does anyone have any advice on this issue? Also, what do you think about the practice of a property manager doing work on a property and then saying that they would just take their fees out of the rent check? Is that a good idea or is it better to pay them directly for any woirk done and get a full rent check.
Thanks for your help.
JS. 
I've never heard of a PM getting permission before they selected a tenant or took a deposit. One of the main reasons for going with a PM is that you get to take advantage of their usually extensive experience interviewing and doing checks on potential tenants. As has been mentioned here before, you are almost certainly going to find things you won't like about any tenant. Often it is the reason they are renting and don't own. I would just go with whatever the PM says if he/she has a decent amount of experience. You would probably just offend them if it appeared you were double checking their work. Most PMs will let you handle paying for repairs however you choose.
On multidwelling you let the property manager handle it all. You just get your monthly report and deposits. Unless you elect otherwise. Depends on property in war zone or out.
On single family houses. I usualy take a look at the application and the credit report. Do not be too hard nose. Just go by your feel especialy in these days of two bedroom one bath houses in working class areas renting for $2,300, a month. First and Last and a Damage deposit of about two months rent. This in the Valley area of Los Angeles. Still a loss as such houses are now selling for about $400,000. Does it make sense? No it is symptomatic of a tremble in the market. After all the proper market sale price of a house in this rental amount would be close. To $230,000 with maybe lst and last but no damage deposit.
From which you deduce that on market correction the drop would be from $400,000 to $230,000. Now thats a big drop. I doubt if it will go that far. I think you will see the rental drops first and then the Present Market Price of the Property start its drop in little slides, a correction and then another slide.
Lucius