Top 10 Questions to Ask When Hiring a Property Management Company

by | Apr 9, 2025 | Owner Education, Property Management Education | 0 comments

blocks with houses on them and one with a question markDon’t Hire the Wrong Property Manager

Hiring a property management company is one of the most important decisions you can make as a rental property owner. The right partner can protect your asset, boost your returns, and free up your time. But the wrong one? They can cost you thousands in missed rent, poor tenants, and preventable repairs.

So how do you separate the pros from the pretenders?

It starts with asking the right questions. Below are the top 10 questions every landlord should ask when interviewing a property management company. Use these to evaluate who’s truly equipped to care for your property—and your bottom line.

Table of Contents

 

1. What is your pricing structure, and what’s included?

One of the first things you should ask is how much their services cost—but don’t stop there. Dig into how their pricing & fee structure works and what you get in return.

Some property managers charge a flat monthly fee, while others take a percentage of the rent collected. Both models can work, but transparency is key. Ask what’s included in that base fee: rent collection, tenant communication, maintenance coordination? Then, ask what costs extra. Services like eviction filing, inspections, or court appearances may not be covered.

The goal is to understand your total monthly cost, not just the sticker price. And don’t be afraid to ask for a sample owner statement—it’ll show how they report income, expenses, and disbursements. That one document can reveal a lot about their communication, professionalism, and attention to detail.

2. How do you handle leasing, renewals, and vacancies?

Vacancies are one of the biggest profit-killers in rental real estate. That’s why it’s crucial to understand how a property management company handles the entire leasing cycle—from marketing to renewals.

Start by asking about their turnover process. What happens when a tenant gives notice? How quickly do they begin preparing the unit for re-rent? A strong PM should have a clear plan to minimize downtime, including proactive inspections and scope approvals before the tenant even moves out.

Next, ask about leasing fees, renewal charges, and how they incentivize tenants to stay. What percentage rent increase is typical? Do they offer multi-year lease options?

Also, clarify their marketing strategy. Where do they list properties? Do they use professional photos and pre-screen tenants before showings? How long, on average, does it take them to lease a unit?

These questions uncover whether the PM is reactive or proactive—and how committed they are to minimizing vacancy loss and maximizing rent continuity.

3. How do you price rentals and adjust rates over time?

A good property management company should be fluent in market dynamics. Pricing your rental correctly—at move-in and at renewal—directly impacts your bottom line.

Ask what tools and data they use to set rental rates. Are they looking at comparable listings? Recent lease signings? Vacancy rates in the area? A data-driven approach helps avoid the two major pricing mistakes: underpricing (which leaves money on the table) and overpricing (which leads to longer vacancies).

Also inquire about their renewal strategy. Do they automatically raise rents by a set percentage? Or do they reevaluate market conditions and tenant quality each time? A thoughtful, individualized approach protects tenant retention while still increasing returns.

Bonus tip: Ask how often they review rent prices across your portfolio, and how they communicate recommended changes. The right PM won’t just maintain your rents—they’ll optimize them.

4. What is your process for screening tenants?

Tenant/resident quality can make or break your rental experience. Poor screening leads to late payments, property damage, and costly evictions. So it’s essential to understand exactly how your PM evaluates applicants.

Ask what their screening process includes. Ideally, it should cover:

  • Background and credit checks
  • Income verification (typically 2.5x or 3x the rent)
  • Rental history and landlord references
  • Employment status

It’s also critical they follow fair housing laws to avoid legal risk. Ask how they ensure compliance and whether they use third-party software or in-house review.

Beyond the technicalities, ask how often they deny applications and why. Do they have clear standards? Are they firm but fair?

A great property manager doesn’t just fill vacancies—they place the right tenants. That means fewer headaches, more stable cash flow, and longer tenancies. In the long run, strong screening is one of the most important ways a PM protects your investment.

5. What maintenance services do you offer, and at what cost?

Maintenance is one of the most common pain points for landlords—and a major differentiator among property managers. Ask how maintenance is handled, who does the work, and how pricing is structured.

Some companies have in-house maintenance teams; others outsource to third-party vendors. Both can be effective if managed well, but you’ll want to know if labor is billed hourly, if there’s a trip fee, and whether there’s a markup on parts or materials.

Also ask about after-hours protocols. Who handles emergencies? Is there a 24/7 hotline for tenants? How quickly do they respond, and do they notify you?

Good property managers should also be proactive with seasonal maintenance, routine inspections, and cost-saving repairs. Don’t hesitate to ask for examples of how they’ve helped reduce repair costs or avoid major issues.

Transparency is key here. Maintenance should feel like a partnership—not a black hole of expenses.

6. How do you handle large repairs and owner approvals?

Not all repairs are equal. You need to know what happens when something big breaks—like a roof leak, HVAC failure, or plumbing issue. The question isn’t if it will happen, but when.

Start by asking what their approval threshold is. Most property managers will have a dollar amount (e.g., $300 or $500) above which they must get your consent before moving forward. That way, you stay informed and in control of large expenses.

Then, ask how they choose vendors. Are they licensed and insured? Do they collect multiple bids for bigger jobs? Do they require documentation and photos?

It’s smart to request a sample repair invoice or scope of work so you can see how thoroughly they document large projects. You’ll want to work with a PM who’s organized, transparent, and prepared for the unexpected.

Because when something expensive needs to be fixed, the last thing you want is to feel blindsided or out of the loop.

7. What kind of financial reporting do you provide?

Clear financial reporting is essential if you want to treat your rental like a business. Ask what types of reports the PM provides, how often, and whether you’ll have real-time access to your property’s financials.

At a minimum, you should receive monthly income and expense statements, cash flow summaries, and year-end reports for tax filing. Some companies also offer balance sheets, rent rolls, and delinquency reports—all helpful for tracking performance.

It’s also worth asking about customization. Can reports be filtered by property or date? Can you export data to share with your CPA or financial planner?

Most modern PMs offer an owner portal where you can log in and view these documents anytime. This kind of visibility ensures you always know how your property is performing.

If a company can’t show you exactly how they track and share financials, that’s a red flag. You deserve transparency and clarity every step of the way.

8. How transparent are you about fees and vendor charges?

Financial surprises are the fastest way to erode trust. Ask your property management company exactly how they handle billing for repairs, maintenance, and third-party services.

Do they mark up vendor invoices? If so, by how much? Do they provide copies of all receipts and labor breakdowns? Are materials billed at cost? These are the kinds of details that show whether a company is truly owner-focused.

Also, look out for hidden fees: charges for owner disbursements, utility transfers, or vague “admin” items. Ask to see a sample invoice and owner statement to assess how clearly things are itemized.

The best property managers treat transparency as non-negotiable. They document everything, communicate clearly, and help you understand where every dollar goes.

When you know exactly what you’re paying for—and why—you can make smarter decisions and build a long-term relationship based on trust.

9. What happens if I want to end the agreement early?

A good contract should be clear not just about what you get—but also how you can walk away if things don’t work out. Ask about the termination clause in the management agreement.

Important details include: how much notice you need to give, whether there are termination fees, and if you’ll owe any prorated or outstanding charges. If they require 60 or 90 days’ notice, make sure you’re comfortable with that timeline.

Also ask how they handle the handoff process. Will they transfer lease files, security deposits, and vendor contacts promptly and professionally? What about communicating the change to your tenants?

A truly professional PM company should make offboarding as seamless as onboarding. That speaks volumes about their integrity and long-term mindset—and it gives you peace of mind, whether you stay for one year or ten.

10. Can you share examples of how you’ve helped clients improve ROI?

This is your chance to separate managers who maintain properties from those who maximize investments. Ask for specific examples where the company helped clients reduce expenses, increase rental income, or stabilize long-vacant properties.

Look for data-backed stories: case studies, before-and-after numbers, or turnaround scenarios that show the company takes an active, investor-minded approach. For example:

  • Reduced vacancy rates by 30% through better marketing
  • Increased rents 10% at renewal by aligning to market data
  • Saved $2,000/year per unit by switching to preferred vendors

You want a partner who thinks strategically, acts proactively, and measures success by how well your property performs—not just whether the lights stay on.

A PM company that can speak to ROI improvement is one that aligns with your long-term investment goals.

The Right Questions Lead to the Right Partner

Hiring a property manager isn’t just about who sounds good on the phone—it’s a business decision that deserves thorough vetting. Think of it like interviewing a key team member. These 10 questions are your blueprint for finding a company that aligns with your goals, protects your property, and drives real results.

Use them in your conversations, compare answers, and trust your instincts.

Want even more guidance? Download our full list of 20 essential questions to ask a property manager for deeper due diligence.

Looking for a Columbus property management partner who checks all these boxes? Contact RL Property Management today to discuss benefits, pricing, maintenance, and more.