Questions to ask a property manager before you hire

A good property manager acts as a liaison between you, the homeowner, and your tenants. Depending on the scope of your agreement with a property manager, they can handle numerous landlord responsibilities such as:

• Fielding maintenance requests and handling repairs.

• Collecting monthly rent and security deposits.

• Filling vacancies (including reviewing rental applications, screening tenants, and drawing up lease agreements).

• Handling evictions.

• Addressing any routine upkeep of your property.

If you choose not to hire a property manager, all of these tasks will fall to you. This is something to consider. Think about if you have the skills and bandwidth to handle these tasks, or if you (and your investment) would be better off delegating management to a professional.

Should you decide to proceed with hiring a property manager, it’s important to understand what they can and can’t offer, so an interview is an essential part of your search. We’ve gathered sample questions to ask during a property manager interview. Here are some of the most important topics to touch upon:

Portfolio

Consider the manager’s current portfolio of properties they manage to get a sense of their workload and level of experience. 

• How many properties do you manage in this same city?

• What’s the average occupancy rate of your properties?

• How long have you been managing properties or working in the real estate sector in this city?

• What kinds of properties do you manage? (Commercial vs. residential short-term vs. long-term; single-family vs.  multifamily)

• Do you manage properties in other real estate markets?

• How do you market your properties?

• Are you licensed? (In some states, like California, property managers must be licensed real estate professionals.)

Rent

The property manager will likely be in charge of collecting rent and may also set the rent on your property if you’d like them to, so ask about their experience with those responsibilities.

• How do you set rent amounts for each property? 

• What type of rental market analysis do you use to do so?

• How do you collect monthly rents?

• Do you have automated/digital systems for collecting rent?

Tenant management

The property manager will be dealing with tenants regularly, so ask questions to get an understanding of how they approach that relationship, from the first screening of prospective tenants to the day-to-day routine property tasks.

• How do you screen tenants?

• Do you use credit checks and background check services?

• How do you handle maintenance requests?

• Have you ever evicted anyone? If so, how did you go about it?

• How long does it typically take you to prepare a vacant residence for move-in between tenants?

• How long does it typically take you or your hired contractors to handle repairs and maintenance?

Fees

There are assorted property manager fees, so make sure to ask about any additional management fees that could pop up (i.e. for filling a vacant property or carrying out an eviction) so you have a sense of what you’ll need to budget for.

• How much do you charge and what is your fee structure? Is it a flat fee or a percentage of the monthly rent collected?

• Do I still pay you if a unit is vacant?

• Is there an extra cost associated with filling vacancies?

• Is there an extra cost associated with carrying out an eviction?

• How big is your team? (If you are interviewing a rental management firm vs. an individual property manager)

Reports

Since a property manager acts as an intermediary between you and the tenant(s), you’ll need them to communicate with you in the form of financial review reports. It’s good to ask about how often they plan to report back to you, and what they’ll cover in the finance reports.

• What can I expect in terms of reporting?

• Clarify any specific reports you will want to see and tailor your follow up questions accordingly.

Finally, ask for references and call them. Look at reviews online, including at the local Better Business Bureau and any local real estate associations. And when it comes time, make sure you review the management contract carefully (with a lawyer) so that you and your prospective property manager start your property management service partnership with a clear understanding of your agreement and expectations.

Bungalow offers tenant placement and property management services that keep your property fully occupied and well managed—helping you earn more rental income from your investment property. With Bungalow, homeowners earn up to 20% more rental income. Learn more about Bungalow.