Why the Right Manager Matters
A competent property manager does more than just collect rent—they respond quickly to emergencies, screen tenants thoroughly, manage maintenance transparently, and ensure you stay legally compliant. For busy investors, expatriates, and first-time landlords, the right partner turns stress into predictable cash flow and fewer headaches.
11 Must-Check Criteria (and How to Test Them)
1. Contract Pitfalls: Rent-Due vs. Rent-Collected
Why it matters: If a company charges fees on rent due (what was billed) instead of rent collected (what actually reaches you), you could be billed even when a tenant hasn’t paid.
Action: Request the exact contract clause in writing. Prefer companies that charge based on rent collected or explicitly promise not to bill you for uncollected rent.
2. Fee Transparency & Hidden Charges
Why it matters: Leasing fees, renewal fees, maintenance markups, eviction fees, and invoice processing fees can quickly add up.
Action: Request a full fee schedule and sample invoices. Ask specifically about maintenance markups and ensure they’re clearly listed in the contract.
3. Emergency Handling & Responsiveness — Test It
Why it matters: Slow emergency responses put your property and tenants at risk.
Action: Perform a vetting test: call after-hours, send an urgent email or text, and time the response. Ask for their service-level agreement (SLA), such as emergency response within 1 hour and non-emergency within 24–48 hours, and request a sample incident report.
4. Communication Before Hiring
Why it matters: Consistent, clear communication reduces surprises and stress.
Action: Evaluate responsiveness during the sales process. Request a demo of the owner portal and assess how timely, clear, and professional their replies are.
5. Tenant Screening & Placement Quality
Why it matters: Proper screening reduces evictions, late payments, and tenant turnover.
Action: Review their screening policy: credit score minimums, income-to-rent ratios, criminal and eviction checks, and sample rejection reasons.
6. Vendor Transparency & Maintenance Oversight
Why it matters: Conflicts of interest or undisclosed markups cost you money.
Action: Ask how vendors are selected, whether the company marks up invoices, and request a redacted maintenance invoice and vendor list.
7. Local Law Knowledge & Compliance
Why it matters: Landlord-tenant laws differ by location—mistakes can be expensive.
Action: Confirm local licensing and ask how the company has handled recent changes in local laws or eviction timelines in your jurisdiction.
8. Reporting, Accounting & Tech Stack
Why it matters: Clear monthly financials and access to an owner portal reduce disputes.
Action: Request sample monthly P&L statements, ledgers, and work order reports. Confirm how quickly you can access statements and tax-ready documents.
9. Inspections & Property Oversight
Why it matters: Regular inspections catch problems early and support dispute resolution.
Action: Ask about inspection frequency, the checklist used, and request example inspection photos and reports.
10. Portfolio Fit & Local vs. National
Why it matters: Experience with your property type and market matters.
Action: For single-family homes, choose managers who specialize in that portfolio. National companies can help with scale, but local teams often offer better vendor relationships and faster on-site responses.
Ask, How many similar properties do you manage locally? and Who will be my point of contact?
11. Exit Strategy & Termination Tips
Why it matters: A poor exit clause can trap you in an ineffective partnership.
Action: Review notice periods, automatic renewals, early termination fees, and tenant handover procedures (security deposits, open leases). Insist on a fair exit clause and request a sample termination workflow.
How to Compare Proposals Side by Side
Create a simple comparison chart using these fields:
- Management fee (%)
- Leasing/placement fee
- Rent basis (collected vs. due)
- Maintenance markup and approval thresholds
- Emergency SLA & after-hours contact
- Inspection frequency & sample reports
- Owner portal & reporting features
- Termination notice & penalties
- References & local experience
Score each item 1–5 and weigh the top three items for your priorities (e.g., cash flow-focused owners should weigh rent basis highest).
High-Impact Interview Questions
- Do you charge on rent due or rent collected? Show the contract clause.
- Provide an example of an emergency you handled and the timeline for resolution.
- How do you vet and bill vendors? Can I see a sample invoice?
- Can you show sample monthly reports and inspection photos?
- What are your termination terms and notice periods?
- How do you handle non-payment and evictions locally?
- Who will be my day-to-day contact, and who handles after-hours emergencies?
Request redacted documents and at least three recent owner references.
Red Flags (Deal-Breakers)
- Refusal to provide sample contract pages or invoices
- Charging on rent due without proof of collection
- No after-hours emergency contact or vague SLA
- Vague vendor policies or refusing to name vendors
- Long automatic renewals with penalties
- No local presence or references for your property type
Decision Checklist & Next Steps
- Request a full written fee schedule and sample contract clause
- Run the responsiveness test (call/email after hours)
- Get sample reports, inspection photos, and a maintenance invoice
- Compare proposals using the criteria above and score them
- Confirm fair termination terms before signing
Want a ready-to-use comparison sheet? Download our Free Property Manager Comparison Checklist or request a complimentary management audit and sample contract review to see how your options stack up.
Frequently Asked Questions
How do I choose the right property management company for my rental property?
Look for experience with your property type, transparent fees, strong tenant screening, responsive communication, and expertise in local landlord-tenant law.
What questions should I ask when interviewing a property management company?
Ask about fee structure, rent collection process, emergency response time, tenant screening, reporting, and contract termination terms.
Should I hire a local or national property management company?
Local companies often know the market and vendors better, while national firms may provide standardized systems. Choose based on your property type and location.
How much do property managers typically charge?
Most charge 8–12% of collected rent, plus possible leasing or setup fees. Confirm whether fees are based on rent due or rent actually collected.
What red flags should I watch out for in a property management contract?
Watch for hidden fees, charges based on 'rent due' instead of 'rent collected', vague maintenance terms, strict termination penalties, and lack of transparency.
How quickly should a property manager respond to emergencies?
A reliable manager should have 24/7 emergency protocols and respond within hours, not days. Test responsiveness before hiring.
What reports should my property manager provide monthly?
Expect income/expense statements, a rent roll, maintenance updates, and inspection reports via an owner portal or email.
How does a property manager handle rent collection and late payments?
They should use clear systems, enforce late fees consistently, and follow legal processes for delinquent tenants.
What level of involvement should I expect with maintenance and vendors?
Managers should use vetted vendors, provide invoices, and proceed with repairs above pre-approved limits only after your consent.
Can I switch property management companies if I’m unhappy?
Yes — but review your contract for notice periods and termination fees. A fair contract allows a 30–60 day exit without heavy penalties.
Choosing the right property management company can be the difference between a stress-free investment and constant headaches. By looking beyond fees and evaluating how a company handles emergencies, communication, maintenance, and contracts, you’ll be better equipped to find a true partner—not just a service provider. Ask the right questions, compare options carefully, and trust your instincts. With the right management team, your rental property can thrive while you enjoy peace of mind.
