Questions to Ask Before Hiring a Property Manager

Choosing a property manager is one of the most important decisions you will make as a landlord. A good manager protects your investment, finds quality tenants, and makes your life easier. A poor one can cost you thousands through vacancies, poor tenant selection, or mishandled maintenance.

Before signing a management agreement, interview several companies and ask the right questions. Here is what you need to know.

How Many Properties Per Manager?

Start with the basics. Ask how many properties each property manager handles. The industry average is around 100-120 properties per manager, but this varies widely.

If a manager is responsible for 150 or 200 properties, response times will suffer. They simply cannot give adequate attention to each property. On the other hand, a manager with only 30 properties might lack experience or their company might be struggling financially.

Look for companies where managers handle 80-120 properties each. This allows for responsive service while indicating a sustainable business model.

What Is Your Tenant Selection Process?

This question reveals more about a property manager than almost any other. Poor tenant selection is the root cause of most landlord problems.

Ask specifically about their screening process. Do they verify income independently or just accept what applicants tell them? Do they call previous landlords, and what questions do they ask? Do they run credit checks, and how do they interpret the results?

Good managers will describe a thorough, systematic process. They will talk about income verification (typically requiring rent to be no more than 30-35% of gross income), reference checks with specific questions about payment history and property care, and credit checks that look for patterns rather than single incidents.

Be wary of managers who seem to prioritise filling vacancies quickly over finding the right tenant. Speed matters, but not at the expense of quality.

How Do You Handle Maintenance?

Maintenance handling significantly affects both your costs and tenant satisfaction. Ask how they manage maintenance requests from initial contact through to completion.

Some property managers have in-house maintenance teams. Others use networks of preferred tradespeople. Some get multiple quotes for larger jobs while handling minor repairs through trusted regular contractors.

Find out their policy on approval thresholds. Most managers will handle minor repairs up to a certain value (often $200-500) without seeking owner approval, to avoid delays. Larger jobs typically require your sign-off.

Ask whether they mark up maintenance costs. Some managers add a percentage on top of tradesperson invoices. Others charge a flat coordination fee. Some include maintenance management in their base fee. Understand the full cost structure.

Finally, ask about their approach to preventive maintenance. Good managers think ahead about issues like heat pump servicing, gutter cleaning, and Healthy Homes compliance, rather than just reacting to problems.

What Are Your Fees and What Do They Cover?

Get a complete breakdown of fees in writing. The headline management percentage (typically 7-10% plus GST) is just the starting point.

Ask about letting fees. Most managers charge for finding new tenants, usually one to two weeks rent plus GST. This covers advertising, viewings, tenant screening, and lease preparation.

Ask about inspection fees. Some managers include regular inspections in their management fee. Others charge separately, typically $50-100 per inspection.

Ask about lease renewal fees, Tribunal attendance fees, and any other charges that might apply. Some managers have lengthy fee schedules with charges for activities you might expect to be included.

Calculate the total annual cost across different scenarios. A manager with a lower percentage but higher individual fees might cost more than one with a higher percentage but inclusive pricing.

How Will You Communicate With Me?

Communication style matters, especially if you are new to property investment or live far from your rental.

Ask how often you will receive reports and what they include. Monthly statements are standard, but some managers provide more detailed quarterly reports on property condition, market rent assessments, and recommended maintenance.

Ask how they handle urgent issues. If something goes wrong at 10pm on a Saturday, how will you find out? Good managers have after-hours systems and clear escalation processes.

Ask about their technology. Many managers now use owner portals where you can see statements, inspection reports, and maintenance records online. This transparency is valuable.

Consider communication preferences. Some managers are excellent on email but hard to reach by phone. Others prefer calls. Make sure their style matches yours.

What Is Your Vacancy Rate?

A manager's vacancy rate indicates their effectiveness at tenant retention and re-letting. Ask for their average vacancy rate across all properties they manage.

The national average hovers around 2-3% in most markets, meaning properties are vacant about 1-2 weeks per year on average. Significantly higher vacancy rates suggest problems with tenant selection, property presentation, or pricing.

Also ask about their average re-letting time. When a tenant leaves, how long does it typically take to find a new one? Two to three weeks is reasonable in most markets. If they regularly take six weeks or more, that costs you real money.

How Many Tenancy Tribunal Cases Have You Had?

This question reveals a lot. Some Tribunal cases are unavoidable, but excessive numbers suggest either poor tenant selection or poor relationship management.

Ask how many Tribunal applications they have made in the past year, and how many applications tenants have made against properties they manage. A good manager should know these numbers and be willing to discuss them.

Ask about the outcomes. Tribunal cases they have won suggest they know the law and document properly. Cases lost might indicate problems with their processes or understanding of tenancy law.

What Happens When We Part Ways?

Relationships do not always work out. Before signing, understand what happens if you want to change managers or take over self-management.

Ask about the notice period required to terminate the management agreement. Thirty to sixty days is typical. Longer periods reduce your flexibility.

Ask what documentation and information they will provide on handover. You should receive copies of all tenancy agreements, condition reports, keys, bond records, and maintenance history.

Ask about any termination fees. Some agreements include fees for early termination, particularly if they found the current tenant. Understand what you might owe.

Do You Have Professional Indemnity Insurance?

Professional indemnity insurance protects you if the property manager makes a mistake that costs you money. This might include errors in tenant screening, failure to conduct proper inspections, or mishandling of bond disputes.

Any reputable property manager should carry this insurance and be willing to confirm coverage amounts. If they are evasive about insurance, that is a red flag.

Can I Speak With Some of Your Other Landlords?

References from existing clients are valuable. Ask if they can put you in touch with two or three landlords whose properties they manage.

When you speak with these references, ask about responsiveness, communication quality, and how problems were handled. Ask whether they would recommend the manager and whether they have considered switching.

Be aware that managers will provide their happiest clients as references. But the conversation still reveals useful information about how the relationship works in practice.

Making Your Decision

After interviewing several managers, compare them across all these dimensions. The cheapest is not always the best value. A manager who charges 9% but finds excellent tenants and minimises vacancy costs you less than one charging 7% with higher turnover.

Trust your instincts about professionalism and communication. You will work with this person for years. Choose someone you are comfortable with and who demonstrates genuine knowledge of the industry.

Finally, read the management agreement carefully before signing. Have a lawyer review it if you are unsure about any terms. The relationship starts before the first tenant moves in.