Hiring a Property Manager? Avoid These Costly Mistakes!

Hiring the wrong property manager can cost you thousands, but hiring the right one can transform your portfolio into a well-oiled machine. In this post, I’ll walk you through the top questions to ask when interviewing a property manager and explain what their answers reveal about their ability to support your real estate goals. I’ll also share the key question at the end that separates amateurs from seasoned pros. If you’re ready to protect your investments, minimize headaches, and grow your portfolio with confidence, keep reading!


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Hiring the wrong property manager can cost you thousands, but hiring the right one can get your portfolio running like a well-oiled machine. In this video, I’m going to share the top questions you should ask when interviewing a property manager and what their answers mean for your future success. And the number one question that separates amateurs from the pros is coming at the end, so make sure to stick around till then.

If you’ve decided to hire a property manager, your goal is to maximize returns and minimize headaches with their help. But here’s the thing—not all property managers are created equal. Based on my experience and conversations with countless real estate investors, issues with property managers are probably the number one complaint. A great property manager is incredible, but a bad one is a total waste of money. That’s why today, I’m giving you a roadmap to properly vet property managers so you can avoid costly mistakes and headaches.

Let’s start by looking at tenant turnover and the leasing process. This area is where you can lose or make a lot of money. One of the first questions I’d ask a potential property manager is: How long is the downtime between tenants? Ideally, I’d like to hear in two to four weeks. A shorter downtime signals efficiency in marketing and tenant placement. A longer downtime could mean disorganization or lack of care for the owner’s best interests. When a property is sitting empty, you’re not making money.

Seasonal variation is, of course, a factor. Spring and early summer are typically times when turnover moves quickly while finding tenants over the Thanksgiving or Christmas holidays tends to take longer. But in an ideal rental market with strong demand, I’d expect that two-to-four-week window.

Next, I’d ask if they visit the property before the lease is over to plan for turnover work. Ideally, the property manager would walk the rental two weeks before the lease ends to assess the necessary repairs or touch-ups. This way, they can schedule the contractor or handyman to come in the day after the tenant moves out. Without this kind of planning, there could be unnecessary delays. Even if the property manager has their own team, it’s unlikely they can jump in immediately without advanced scheduling.

Another key question is: Where do you list properties for rent? I want to hear that they’re listing the property on as many platforms as possible. Most property managers use systems that automatically push listings to sites like Zillow and Apartments.com, but I also want to hear they’re putting in the extra effort to post manually on platforms like Facebook Marketplace and the local MLS. Facebook Marketplace, while it comes with its fair share of inquiries like, “Is this still available?” is a goldmine for finding tenants.

The second major area to evaluate is maintenance and repairs. This is a part of property management where costs can spiral if not handled properly. A key question to ask is: Do you handle maintenance requests in-house, or do you use contractors? An ideal scenario is one where they have a handyman to handle simple tasks in-house, which typically ensures faster resolutions and happier tenants. For larger repairs or projects, they should have a vetted list of licensed contractors they work with regularly.

If they rely solely on contractors, I’d dig a little deeper and ask about typical costs, hourly rates, and response times compared to other property managers in the area. Another critical question here is: What’s your typical markup on contractor repairs? Industry standards usually range between 10–15% for their time and effort coordinating with contractors. If it’s significantly higher, that’s a red flag. Conversely, if they charge nothing, you might want to explore how they’re sustaining their business model.

The final area I focus on is financial transparency and reporting. Transparency isn’t just important—it’s a non-negotiable. A question I always ask is: What property management technology do you use? AppFolio is a popular, industry-standard platform that provides excellent transparency, allowing landlords to track rent payments, expenses, and owner distributions in real time.

If they’re not using AppFolio, it’s important to find out what they are using and how they maintain transparency. Boutique firms or newer property managers might not use high-end platforms, but they should still have a clear and consistent way of reporting.

I also ask: What does your financial reporting look like, and how often do owners receive it? Whether it’s monthly reports or real-time updates, you want to ensure the information you need is provided on time and in an easily digestible format.

Finally, I’d ask: When and how are owner distributions handled? I’ve seen property managers take anywhere from two weeks to over a month to send owner payouts. Anything longer than 45 days is concerning and worth investigating further.

Another aspect of hiring a property manager is gauging their professionalism and experience through referrals and communication. Always ask if they can provide two or three references from other investors they’ve worked with. I like to reach out to these references and ask: What do you love about this property manager? What do you not love? A balanced response gives you insight into whether the property manager aligns with your needs.

I’d also ask: What makes a landlord successful in your opinion? This open-ended question provides a glimpse into their values, their experience, and how they approach partnerships with landlords. I want to hear that they value good communication, as this often means they’ll provide the same. I also like to hear that they value maintaining the property and spending what’s necessary to keep it in good condition.

If you’ve stuck around to the end, here’s my top tip for vetting a property manager. Always ask: Can you share an example of a time when something went wrong with a tenant or property and how you handled it? This question reveals their problem-solving skills, their experience, and their professionalism. If they claim nothing has ever gone wrong, they’re either inexperienced or not being truthful. Listen carefully to their response—how they communicate, their level of respect for others, and their willingness to take responsibility all speak volumes.

The choice of a property manager can make or break your real estate portfolio. I hope these questions empower you to conduct thorough interviews and choose a property manager who will make your life easier, maximize your returns, and help you scale with confidence. Thank you for reading, and I look forward to sharing more real estate investing tips with you soon!

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