8 Questions to Ask Before Hiring a Property Manager

The dream of owning rental property is often one of passive income, i.e., money appearing in your bank account while you focus on other things. The reality can be quite different. It can feel like a second job filled with clogged toilets, tenant arguments, and chasing late rent checks. This is exactly why smart investors hire a property manager. But finding the right one is a job interview for a crucial business partner. To get it right, you need to ask the right questions.

What kind of properties are you used to?

Experience isn’t just a number; it has to be the right kind of experience. Someone who manages a 50-unit apartment complex might not be the best fit for your single-family home, and vice-versa. Get specific. Ask them to describe the portfolios they’ve managed in the past. Are they familiar with your city’s neighborhoods and what tenants there expect? You’re looking for a specialist who already knows the playbook for your type of investment, not a generalist who will learn on your dime.

How do you market vacant units to minimize downtime?

Vacancy is a cash-flow killer. Every day your property sits empty is money lost forever. You need to know specifically how the manager plans to attract eyes to your listing. Sticking a “For Rent” sign in the yard is not a strategy; it’s a wish.

Ask about their digital footprint. Do they syndicate listings to all the major platforms like Zillow, Trulia, and Apartments.com? Furthermore, ask about their presentation standards. Do they use professional photography and virtual tours, or do they upload blurry photos taken on a smartphone? High-quality listings attract high-quality tenants. Finally, ask about their response time to leads. A prospective tenant often rents the first place that responds to them. If your manager doesn’t have a system to answer inquiries on weekends or evenings, you are losing business to competitors who do.

How do you find and deal with tenants?

Bad tenants are a landlord’s worst nightmare, causing property damage and months of lost rent. Your first line of defense is a manager with a rock-solid screening process. Don’t just accept a “yes, we screen them.” Ask them to walk you through it.

• How do you verify income and rental history?
• What specific things do you look for in a credit or background check?
• Who is responsible for creating and enforcing a strong lease?

Finding good tenants is only half the battle. How do they handle the relationship afterward? Ask how they manage complaints or late-night emergencies. A manager who keeps good tenants happy is a manager who keeps your vacancy rates low.

How do you handle the money?

You need to know exactly how the manager’s financial process works. How do they collect rent, and what’s the protocol the moment a payment is late? What fees are charged, and when do they consider it time to start a formal eviction? Transparency is non-negotiable. Ask what kind of financial reports you’ll get each month. You should expect a clear, itemized statement of all income and expenses. Surprises are for birthdays, not for your investment’s balance sheet.

What is your full fee structure, including the “fine print”?

Many owners make the mistake of comparing property managers solely based on the monthly management fee (usually a percentage of the rent). This can be a costly error. A company charging 8% might actually be more expensive than one charging 10% once you factor in ancillary fees. You need to ask for a complete schedule of charges.

Common hidden costs include “lease-up fees” (a fee, often equal to one month’s rent, for finding a new tenant), lease renewal fees, and vacancy fees. Perhaps the most contentious is the “maintenance markup.” Some managers charge a percentage on top of the vendor’s invoice for coordinating repairs. If a plumber charges $200, and the manager adds a 10% markup, you pay $220. Over a year, these markups can devour your profits. Ensure you understand every single line item where money leaves your account.

What’s your plan for maintenance and repairs?

Things break. It’s a fact of life for any property owner. How a company approaches maintenance tells you everything about how they’ll handle the property management as a whole. Are they simply reactive, waiting by the phone for a tenant to report a problem? Or are they proactive, performing regular inspections to catch small issues before they become massive, expensive failures?

Ask about their network of professionals. Do they have reliable, vetted, and reasonably priced plumbers, electricians, and handymen they work with regularly? Or will they be scrambling and calling the first person they find on Google? Their answer reveals their strategy for either just managing problems or actively protecting the value of your asset.

How do you stay on the right side of the law?

This is the question that can save you from lawsuits. Landlord-tenant law is a minefield of local, state, and federal regulations. One misstep, even an unintentional one, can result in severe penalties. Ask about their qualifications. Do they have the necessary licenses for your state? More importantly, how do they stay updated on the constant changes in housing laws and building codes? A competent manager knows the rules around evictions, security deposits, and fair housing inside and out. This knowledge isn’t a perk; it’s your primary shield against legal trouble.

What are the terms for terminating our contract?

No one enters a marriage planning for a divorce, but in business, you must have a clear exit strategy. If the relationship sours (if the manager is unresponsive, fills your unit with bad tenants, or fails to maintain the property) you need to know how difficult it will be to fire them.

Ask to see the termination clause in the management agreement. Some contracts lock you in for a year or more with heavy penalties for early cancellation. Others require a lengthy notice period, such as 60 or 90 days. Ideally, you want a manager confident enough in their service to offer a flexible agreement that allows you to terminate with 30 days’ notice if you aren’t satisfied. Be wary of any company that tries to hold you hostage with a contract rather than keeping you loyal through great service.

Bringing in the Experts

Hiring a property manager isn’t just about offloading work. It’s about bringing in an expert to protect and grow your investment. By asking these direct questions, you move past the sales pitch and get a real sense of their competence and professionalism. You are looking for a partner you can trust to handle the property management so you can get back to the big picture.