9 Things You Must Know About a Property Management Company

Hiring a property management company can be one of the most important decisions you make as a real estate investor. Whether you own a single rental or a growing portfolio of multifamily properties, your property manager will directly impact your cash flow, tenant satisfaction, and asset value. That’s why it’s essential to know exactly what to ask before signing any agreements.
In this guide, we’ll cover the 9 key questions to ask before hiring a property management company, along with the most critical things to know about property management, key facts, and how to avoid common mistakes. If you’re researching what to know about property management or exploring the services of FM property management or similar firms, this article will help you make a confident, informed decision.
Start by asking: Where is their office located, and what neighborhoods do they serve? A local property manager will be more responsive and better equipped to handle tenant needs, property visits, and local vendor relationships.
Also ask:
Property management key fact: Managers with conflicting ownership interests may prioritize their own properties first. Choose a company that serves your area but doesn’t compete with your units.
Vacancy equals lost income, so understanding how the property manager finds and retains tenants is crucial.
Key questions:
You should also ask: What is your average turnaround time for filling a vacancy?
What to know about property management: Effective managers have streamlined processes for showing, screening, and leasing units quickly.
Finding reliable tenants reduces turnover, late payments, and damage. Ask:
Things to know about property management: Skipping thorough tenant screening often leads to bigger problems down the road. Make sure the company prioritizes quality over speed.
Also ask to review a sample lease. It should include all legal terms, occupancy limits, maintenance responsibilities, fees, and rules.
Repairs are unavoidable, and deferred maintenance can sink your ROI. Ask:
Get clarity on pricing and markups. Maintenance can be a hidden profit center, so insist on transparency and pre-approval for larger expenses.
FM property management and reputable companies should provide itemized breakdowns of maintenance activity and costs.
Reliable cash flow depends on effective rent collection. Ask:
Also ask: How often will I receive payment reports? Ideally, you should receive a detailed income and expense report monthly.
Property management key fact: A strong PMC enforces lease terms while maintaining professionalism with tenants.
As an owner, you need up-to-date financial and operational data to manage your investment.
Ask:
Standard reports should include:
What to know about property management: Lack of reporting is a major red flag. A good PMC is transparent and consistent.
Fees can vary widely based on location, property size, and services provided.
Ask:
Things to know about property management: Most charge 4–8% of gross monthly rent. Smaller properties may see higher percentages. Always compare total cost against services provided.
Property managers must be licensed in most states. Ask for proof of:
This protects both you and the manager in case of legal or financial issues.
FM property management, like other professional firms, should readily provide this documentation.
Before signing, ask to review a sample contract. Pay close attention to:
Property management key fact: Avoid contracts that lock you in or give the manager unnecessary control over your property.
Download our free ebook about “How to Hire a 3rd Party Property Management Company.”
Hiring the right property management company can be the difference between a high-performing investment and a financial headache. These 9 questions will help you uncover red flags, evaluate professionalism, and find a manager who aligns with your goals.
Whether you’re evaluating MF property management or another provider, remember this: Your manager is your partner. Choose wisely.
If you’re ready to grow your portfolio and want expert guidance, explore Rod Khleif’s multifamily coaching programs or download the free book How to Create Lifetime Cash Flow Through Multifamily Properties.
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