The property management industry has a low barrier to entry. That means for every excellent manager, there are five mediocre ones. Choosing the wrong one costs $5,000-$15,000 per year in inefficiencies, and you might not even realize it.
The 8 Questions That Reveal Quality
1. How do you determine rental pricing? A good answer involves comp analysis, submarket data, seasonal adjustments, and days-on-market monitoring. A bad answer: "I check Zillow and Rentometer."
2. What does your screening process include? You want to hear: credit check, income verification (3x rent minimum), employment verification, rental history with direct landlord contact, background check, and eviction search. If they skip any of these, they will eventually place a bad tenant in your property.
3. How do you handle maintenance requests? Look for: documented triage process, pre-vetted vendor network, pre-negotiated pricing, approval thresholds, and photo documentation of all work. "We call a guy" is not a system.
4. What does your monthly reporting include? Minimum: rent collected, expenses paid, maintenance invoices attached, net owner proceeds, and property status notes. If you have to ask for this information, the manager is not proactive enough.
5. How many properties does each manager handle? Industry average is 50-100 doors per manager. Above 150, response times and attention to detail decline significantly.
6. What is your vacancy rate across your portfolio? The national average is 5-7%. If they don't know this number, they are not tracking performance. If it's above 10%, their leasing process has problems.
7. Can I talk to three current clients? Any manager who hesitates here is hiding something. Call the references and ask one question: "Would you hire them again?"
8. What happens if I want to leave? Understand the contract terms, cancellation notice period, and any fees. A confident manager makes it easy to leave because they know you won't want to.
Red Flags That Should Disqualify Immediately
They can't provide a sample monthly statement. They don't carry E&O insurance. They commingle security deposits with operating funds. They don't have a dedicated maintenance coordinator. They charge fees you discover after signing.
The management fee is the least important number. What matters is the system behind it.
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