What to Look for When Hiring a Property Manager

Amber RandhawaHomeowner and Homebuyer Tips

Have you recently acquired an investment property, or are you considering making the jump into investment property ownership? If so, have you considered how you will manage the property? You can opt to take care of matters yourself, but most people find that contracting this service from a professional property manager can alleviate much of the stress that comes with owning a rental property. If you have just entered the landlord business, you may be wondering how to go about selecting the right property management company to oversee your investment. Should you work with an individual who can give your property specialized attention, or should you instead partner with a larger property management firm with a team of experts who can guarantee your investment experience will be easy and stress-free? We asked several experts in the investment property space what are the most important characteristics to look for when choosing the right property manager.


Do You Trust Them?

Ask to meet with any prospective property managers in person. If you are interviewing an individual this is easy, but you should also ask to meet with the specific person who will be in charge of your property at any firm you consider working with. Upon meeting them, ask yourself if you would trust that person to stay in or rent your home. If you have a negative impression of them and could not envision renting directly to them yourself, then this is not the person to oversee your investment. Trust is an important actor in any line of business, and likewise should not be overlooked when it comes to property management.


Just as important as trust is that your property manager possess good communication skills. All of the other aspects of the property management business can be taught, from legal expertise to accounting, but effective people skills and the ability to communicate effectively both with you as the owner and with tenants is more important than any other aspect of the business.

Have They Dealt with Properties Like Yours Before?

You should only considering hiring a professional who has experience with the type of investment property you have acquired. There are many small but distinct differences between commercial properties and residential investments, and their tenants and owners have very different needs. Even within the commercial property business, there are many nuances between managing an office park or a retail shopping plaza. Similarly in the residential property business, a company with vast experience overseeing vacation homes may not be the best fit for a small apartment complex filled with long-term residents. You’ll see a higher return on your investment if you make sure you are working with experts who can address the specific needs of you and your tenants.


Ask About Their Tenant Screening

Long gone are the days of simply accepting first and last month’s rent before having a tenant sign on the dotted line. You only want to hire a property manager who will do whatever it takes to protect your investment. The best property managers will screen all prospective tenants thoroughly, including a criminal background investigation, credit check and they will speak personally with at least two references.


If you have purchased a building or buildings that include multiple residential units, being able to market this type of in-depth screening will likely make your property more attractive to other renters, since there will be a better guarantee of both safety and property upkeep.

Make Sure They Have a Local Presence

If you have purchased one single family home, it might be possible for you to contract with an individual for your property management needs. However, your investment is a commercial strip mall or office space, or an apartment complex, you likely need a team of people working on behalf of you and your property. Even if you choose to work with a large regional or even national property management firm, make sure they have a physical local presence, whether through a local office or an individual account manager who is based near your property. It is extremely important that someone from your property manager’s office have boots on the ground and be able to check on your property in-person on an as needed basis. Your best bet is if someone can regularly drive by the location and even stop in, as this could enable them to catch any issues with the building or community before they become much larger problems. A local presence is also necessary when it comes to being aware of local laws regarding investment properties and the tenant rights process.


Are They Transparent in Their Costs?

You are going to pay a lot of fees to any property manager for the work they do in taking care of your investment. On top of the base rate charged to manage your property, it is important for you to find out the property manager’s policies for other charges including maintenance, leasing and other activities like marketing your property. Do they send bills from maintenance costs to you directly, or do they mark up these types of services? Or alternatively, does the property manager cover all maintenance expenses in exchange for a monthly fee that covers repairs whether any are needed or not?


Make sure you understand up front what all of the costs are when it comes to managing your property, and make sure everything is clearly laid out in any contracts or other documentation you will be signing as a part of the agreement. To check for this transparency, you’ll want to closely go over the property management agreement, which outlines the business relationship between you and the property manager. This agreement also delineates the property management team’s tasks and responsibilities. It is extremely important that you read the agreement carefully and make any necessary amendments before signing off. Confirm that the agreement covers everything you want, and that there are no disagreeable clauses.

Availability and Responsiveness

Do you want to be awakened at 2am by a tenant who is upset because their toilet is broken? Of course not – that’s one of the main reasons you are looking to hire a property manager in the first place. You should only consider property managers who have 24/7 availability for your tenants, so that after hours emergencies can be dealt with in a timely manner. Keeping your tenants happy is integral to your investment property workstream, so attentiveness and quick response time is absolutely necessary from your property manager. And its not just the tenants happiness you’re after. Your property can experience extensive damage if a leak or other maintenance issue isn’t dealt with quickly and thoroughly, no matter when the problem occurs. Ask for a guarantee that both your calls and those of your tenants will be answered no matter the time of day or night, and that all urgent requests will be dealt with in a timely manner.


Verify Their Professional Licenses

In some areas, you might find people managing properties with only a real estate license, and a few states don’t require a license of any type at all. However, proper licensing and professional certifications for property managers are available, so requiring your property manager to have these certifications is a wise move.  Numerous trade organizations offer such certifications, such as The National Association of Residential Property Managers (NARPM), which generally focus on single-family homes and small residential properties.


Property managers who complete their initial training and vetting process may receive the Residential Management Professional (RMP) designation, meaning they should be fully competent at handling your property. After taking additional classes, more experienced property managers can work toward obtaining the more prestigious Master Property Manager (MPM) designation. Property managers who have achieved this level are highly sought after, and if a firm you are considering has one or more Master Property Managers, they will likely be a good fit for you. Lastly, companies that have demonstrated the highest levels of professionalism in the property management industry may also apply for the Preferred Residential Management Company designation (CRMC).

To determine if a property manager you are interviewing is experienced enough to handle your property, ask the following questions:

  • Do you have a broker’s license?
  • What additional training and certifications have you received?
  • What certifications does your company overall have?

The Look of a Professional

All of the aforementioned items are vitally important when deciding on a property manager, but don’t discount impression you can get from the look and feel of a business. After all, your property manager will be representing you in the rental market, and you want to make sure they have the ability to represent your well. Key indicators of professionalism include:


  • A modern and aesthetically pleasing website with straightforward navigation and resources for both renters and property owners.
  • A clean and organized office space (or home office in the case of an individual).
  • Professional marketing materials
  • Professional attire (whether in person or video calls)
  • Always being punctual for meetings, whether in person or remote

As previously discussed, having a local presence is ideal, but even with someone located just across town, both you and renters will often need to meet via phone or video call. You can tell a lot about a person’s professional demeanor through such video meetings, and even in email communications. Your property manager should maintain a professional presence through any means of communication.