Property Manager: Tips Landlords Should Know When Hiring

There will come a time in nearly every investor’s career when hiring a property manager makes more sense than managing the property on your own. While you can have a lot of success managing your own properties, there are circumstances when bringing in a professional is the better move.

The thing is, when you choose to hire a property manager, you are entrusting them with the outcome of your success or failure. It’s imperative you take appropriate steps to protect yourself and your asset. This is one area you do not want to cut corners on.

Where to Find a Property Manager

The internet has made finding what you are looking for easier than ever, but there’s a new hurdle many overlook. Most people use a search engine to start their search, but it’s not uncommon for the entire first page to be paid advertisements. Just because a company paid Google to appear first doesn’t mean they’re good at what they do.

It is still a good idea to use Google as a starting point, but as an added resource, check the National Association of Realtors (NAR) Directories. Not every property manager falls under the NAR umbrella, but it is a great way to refine your search and cut through the advertising noise.

Traits to Look for Before Hiring

It’s nearly impossible to guarantee that someone will be a good fit for your company or property. However, being diligent during the interview process can minimize the chance of a bad hire. Here are key traits to evaluate:

1. An Investor’s Mindset

Make sure your property manager has an in-depth understanding of management from an investor’s perspective. Many property managers know how to market and find tenants, but few know how to build a business strategy to improve your bottom line. If they can’t provide you with a solid investment strategy that you can stand behind, they’re probably not a good fit.

2. Stern

Disputes and issues will arise with tenants. If your property manager isn’t firm, you’ll be the one dealing with the repercussions. For example, if a tenant is consistently late on rent and the property manager doesn’t put their foot down, the tenant will continue to be late with every future payment. People test limits — your property manager needs to enforce them.

3. Patient

This may sound contradictory to being stern, but they work hand in hand. A successful property manager needs patience during times of chaos. Property and people create plenty of it. Look for someone who is willing to listen, has strong customer service skills, and can handle complaints and high-stress situations gracefully.

4. Strong Communication Skills

There is nothing worse than hiring a property management company only to discover they’re impossible to reach. During the initial connection, note how quickly they respond. In the interview, pay attention to whether they interrupt you while you’re speaking. A company that won’t listen to you when they’re on their best behavior definitely won’t listen later.

5. Timely

Finding a property manager who respects deadlines is invaluable. Countless moments require timelines to be met. If you have a manager that isn’t devoted to staying on schedule, their neglect could cost you thousands.

6. Creative

There is no one-size-fits-all when it comes to managing a property. Each property is different, and every investor’s goals are different. Sometimes it takes ingenuity to get a property out of a tough spot. Look for someone who doesn’t have a problem thinking outside the box.

7. Organized

Real estate has many moving parts. At any given time, a property manager may be renewing a lease for one building, finding a tenant for another, and scheduling maintenance for a third — all in one day. Ask them what techniques they use to stay organized. Their answer will reveal how they handle competing priorities.

8. Tech-Savvy

Technology has revolutionized real estate. There are countless investment and management tools that can greatly improve overall returns. Ask what tools and technology they have at their disposal. Platforms like Compass give you institutional-grade budgetary planning, expense tracking, and proforma generation — all in one place. Make sure you are capitalizing on new technologies to maintain a competitive advantage.

9. Transparent

This is by far one of the most important traits. Find someone who is extremely transparent and will tell you bad news as soon as it arises. A good method for testing this: ask them to tell you something they’re embarrassed about. It may not seem work-related, but how honest they are with their answer reveals a lot about how transparent they’re willing to be.

List Your Expectations

Before the interview, make a list of expectations you have for the management company. This will help avoid unexpected surprises down the road because you’ve already outlined what is expected of each other.

Ask multiple questions to ensure consistency in their answers. Here are some questions to consider:

How do you advertise and fill a rental vacancy?
Who is accountable for advertising fees?
What is your management fee?
Are there property management fees if my property is vacant?
Do you charge an additional commission for finding a new tenant?
Do you charge a fee if a tenant renews?
How do you determine a fair market rental rate?
Do you prioritize tenant retention or highest rent — and why?
Do you provide a lease agreement, or do we provide our own?
What methods will you implement to improve our bottom line?
How do you screen new tenants?
How long, on average, does it take to fill vacancies?
Do I need to be involved in the tenant selection process?
How do you handle tenant maintenance requests and emergencies?
How are delinquent rents handled?
Will you handle evictions if needed?

Check Their Sources

Before hiring, take your due diligence a step further. When anyone asks for references, they typically share contacts they have good relationships with. Instead, ask for two specific things:

Past Client References

When you ask for past client references, observe their reaction. They will respond in one of three ways:

Defensive or pushback: They resist providing contacts to former clients. This is a red flag — it suggests no good prior relationships and a combative nature. Stay clear.
“No past clients”: They claim they don’t have any. If they’ve been in the industry for a while, this is unlikely and worth pressing on. People move, sell, and change managers — the odds of zero past clients are low.
Happy to provide: They’re willing or eager to share references. Even if they don’t have contacts on hand, their willingness shows character. Make sure they follow through.

Vendors List

Ask for a list of all their vendors. This isn’t about gauging their reaction — it’s about reviewing the vendors themselves.

When something breaks, your manager will call a vendor from their list. Typically, it’s someone they have a long-standing relationship with. But that relationship doesn’t guarantee ethical service.

Example: The A/C unit goes out. The HVAC vendor comes and says the entire unit needs to be replaced — thousands of dollars. In reality, it may have only needed a $200 relay switch. The management company doesn’t care about your expenses because their income is based on effective gross income, which is calculated before expenses.

Getting the vendor list lets you check Google reviews for every vendor they use, helping you assess the quality of their service partners.

Review The Contract

Finally, put time into reviewing the contract between you and the property management company. Assume that whoever wrote the contract wrote it to protect themselves. Review everything carefully. If anything doesn’t make sense or is vague, ask questions — and ask through email so you leave a paper trail.

Once you’ve finalized everything and you’re comfortable with the terms, you can hand over the reins and watch them work.

FAQs

How much does a property manager typically charge? Most commercial property managers charge 4–10% of effective gross income, depending on property type, size, and services included. Some charge flat monthly fees for smaller assets. Always clarify whether leasing commissions, maintenance markups, or renewal fees are separate.

Should I self-manage or hire a property manager? It depends on your portfolio size, proximity to the property, and expertise. Self-management works for hands-on investors with 1–3 local properties. Once you scale beyond that, or invest out-of-state, a professional manager typically pays for itself through better tenant retention and lower vacancy. See our tips for real estate investment success for more on scaling strategies.

What’s the biggest red flag when interviewing property managers? Defensiveness about sharing past client references. A manager unwilling to let you speak with former clients likely has relationship issues you want to avoid. Also watch for slow communication during the interview process — if they’re slow when trying to win your business, expect worse after signing.

How does property management affect my returns? Directly. Good management minimizes vacancy, controls expenses, and preserves property value — all of which flow into your NOI, cap rate, and cash-on-cash return. Poor management can turn a solid investment into a money pit.

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