Questions to Ask Property Management Company
Questions to put to a property management company before signing the agreement, covering leasing authority, deposit and reserve handling, indemnity clauses, the late-rent process, and what is billed separately.
The questions
Open any question for the note
Can I have the full agreement and fee schedule to read before I decide?
Why ask it
Send this first. A company that provides both without hesitation is used to owners who read. One that offers a summary and asks you to sign at the meeting is relying on you not reading the clauses about term, termination, and commission on sale.
Which services are included in the monthly fee, and which are billed on top?
Why ask it
Ask them to mark up their own list. Leasing, renewals, inspections, court appearances, and annual statements are the usual extras. Owners routinely discover a second fee only when the first statement arrives.
What authority does the agreement give you to act without asking me?
Why ask it
Signing a lease, agreeing a rent, serving notice, and starting an eviction are all decisions that may sit with the company by default. Find the clause and ask for the dollar and decision limits in writing.
Who is named as landlord on the lease, you or me?
Why ask it
This determines who a tenant sues, who must be served notice, and who appears in court. Both arrangements exist; the important thing is knowing which one you are agreeing to before a dispute starts.
Where are security deposits held, and who returns them?
Why ask it
Deposits are regulated in most places, sometimes down to the type of account and the deadline for return. Ask which entity holds them and who is liable for a penalty if a deadline is missed.
Does the agreement require me to indemnify you, and for what?
Why ask it
Broad indemnity clauses can leave you paying for the company's own errors, including regulatory penalties. Ask them to read the clause aloud and explain what it excludes. If they cannot, have a lawyer look at it.
What insurance do you carry, and what do you require me to carry?
Why ask it
Expect general liability and errors and omissions on their side, and a requirement to name them as additional insured on yours. Being added to your policy has premium and liability implications worth checking with your insurer.
What is your written process when rent is late, and on which day does each step happen?
Why ask it
You want dates: notice on day five, filing on day fifteen. A company that answers in principles rather than dates is deciding case by case, which usually means later filings and larger arrears.
How do you handle a fair housing or discrimination complaint?
Why ask it
Screening and advertising are where most exposure sits, and the owner is often liable alongside the agent. Ask what training the leasing staff have had and whether a complaint has ever been made against the firm.
What are your standing rules on pets, smoking, and subletting, and can I set my own?
Why ask it
Companies apply portfolio-wide policies for consistency, which can conflict with your preference or with a local ordinance about assistance animals. Establish now who wins where you disagree.
Can I place a tenant myself, and what happens to the fee if I do?
Why ask it
Some agreements charge the leasing fee regardless of who found the tenant, and some forbid it outright. Worth knowing if you already have a likely tenant, such as a family member or a returning renter.
How is rent set at renewal, and do I approve the figure?
Why ask it
Look for whether they run a market comparison and whether you see it. Firms paid on rent collected have a small incentive to renew cheaply for an easy life, and rent that drifts below market is hard to correct later.
What reserve do you hold from my funds, and when does it get topped up?
Why ask it
A few hundred dollars held back for small repairs is normal. What matters is whether the top-up comes out of the next rent payment automatically, which changes what actually arrives in your account each month.
How do you decide between repairing something and replacing it?
Why ask it
Ask for a recent example with the numbers. Companies that always replace are minimizing their own callbacks with your capital; companies that always patch leave you with a failing appliance and a frustrated tenant.
How often does someone physically go inside the property?
Why ask it
Exterior drive-bys are cheap and reveal nothing about a slow leak or an unauthorized occupant. Ask for the interior inspection frequency, whether photographs are provided, and whether it costs extra.
What do you need from me at handover?
Why ask it
Keys, appliance warranties, service records, lead or asbestos disclosures, gate codes, and any existing tenant file. A company with a proper checklist is one that has done this often. A vague answer predicts a messy first month.
What happens to the tenant, the deposit, and the records if I end the agreement?
Why ask it
Ask specifically whether files, ledgers, and the deposit transfer within a set number of days. Slow or partial handover is the most common way a departure turns into a genuine problem for the tenant as well as for you.
How is the agreement renewed, and what notice do I have to give to stop it?
Why ask it
Automatic annual renewal with a narrow notice window is common. Note the date in your calendar the day you sign, because missing it by a week can commit you for another year.
What do you not do that owners often assume you do?
Why ask it
Honest answers here include tax filing, insurance claims, capital projects, and dealing with a homeowners association. It is a short conversation that prevents a year of assuming someone else is handling something.
If this does not work out, what would the first sign be?
Why ask it
It invites them to describe the failure modes they have actually seen: slow approvals, disagreement over repair standards, unrealistic rent expectations. Their answer tells you what to watch in the first six months.
Before you sign the management agreement
Practical guidance for the conversation itself
Clauses worth finding yourself
- Term and renewal: how long, and whether it rolls over automatically
- Termination: notice period, fee, and whether you can leave for cause
- Fee basis: rent charged or rent collected, and every additional fee named
- Spending authority: the repair limit above which they must reach you
- Indemnity and hold-harmless: what you are agreeing to cover
- Commission on sale: whether they have a claim if you sell, including to the tenant
- Exclusivity: whether you may rent or sell the property through anyone else
Checks that take under an hour
Confirm the license yourself
Look the company up on your state or provincial licensing register rather than accepting a number on letterhead. The register also shows disciplinary history.
Ask your insurer about the additional insured requirement
One call establishes what it costs and what it changes about your cover. It occasionally reveals that the requested wording is unusual.
Have a lawyer read the indemnity and termination clauses
An hour of review on a multi-year agreement is proportionate, and these two clauses are where the asymmetry usually sits.
Get every verbal promise into the document
Response times, inspection frequency, and fee waivers offered in the meeting are only real if they appear in the agreement or an attached schedule.
Where owners get caught
Signing at the meeting
There is no version of this decision that improves under time pressure. Take the document away, and treat urgency as information about the company.
Comparing only the headline percentage
A seven percent fee with a full month's leasing fee, a renewal fee, and a ten percent repair markup can cost more than a ten percent all-inclusive one. Work out the first-year total.
Assuming local rules are handled
Registration, inspections, and deposit deadlines vary by city. Ask which of these the company files on your behalf, and confirm you are not the one legally on the hook for the rest.
Missing the renewal window
Automatic renewal plus a thirty-day notice requirement means one missed month costs you a year. Put the date in the calendar before you file the contract.