12 Questions to Ask a Property Manager Before You Sign

Most owners hire a property manager the way they'd hire a contractor: get a quote, compare the percentage, and pick the lowest number. Then they spend the next two years finding out what that number didn't include.

The management fee matters. But the questions that actually protect you are about process: who answers the phone, how tenants get screened, where your money sits, and how you get out if it doesn't work. Interview more than one company and ask every one of them the same questions, so you can compare the answers side by side.

Here are the 12 we'd ask, and what a good answer sounds like.

1. Are you licensed to manage property in this state?

A good answer is "yes," along with a license you can look up yourself. Don't take it on faith.

In South Dakota, the state real estate commission licenses property managers (SDCL 36-21A-47 provides for a restricted broker's license for them). You can check any company with the South Dakota Real Estate Commission's license lookup. Montana and Arizona have their own licensing rules. This isn't legal advice.

2. Can I see every fee in writing?

A good answer is a written fee schedule, handed over before you ask twice. If a company gets vague here, that tells you something.

Look past the monthly percentage. Ask about leasing or tenant-placement fees, renewal fees, setup fees, vacancy fees, inspection fees, and any markup on maintenance. Then total up what a full year would cost you at your rent. A lower percentage with a long list of add-ons can easily cost more than a higher one with none.

3. What does the management fee include, and what costs extra?

A good answer is specific: rent collection, owner statements, maintenance coordination, inspections, lease enforcement. You want the list, not a promise that "we handle everything."

This is where two companies quoting the same percentage turn out to be selling very different things. We've written before about what actually makes a property management company worth the fee.

4. How fast do you respond to owners and tenants?

A good answer is a real standard, not "as soon as we can." Ask how they handle both owner questions and tenant repair requests, and what happens after hours.

Poor communication is one of the most common frustrations in this industry. When you start typing "property manager not responding," Google autocomplete fills in the rest. We wrote about why property managers stop responding and what to do about it.

5. How do you screen tenants?

A good answer covers verified income, rental history, eviction history, and one standard applied to every applicant. "We run a credit check" isn't enough.

Screening is where most of the expensive problems are prevented, long before they show up. Here's what good tenant screening catches that a credit score doesn't.

6. How will you set the rent?

A good answer is based on current local comparables and competing listings, not on the number you're hoping for. Be a little wary of the manager who promises the highest rent.

A property priced too high sits vacant, and a vacant month is rarely made back. We've covered how to actually price your rental.

7. How often will you inspect my property?

A good answer is a regular schedule with written reports and photos, not "when there's a problem."

Inspections are how small issues get caught while they're still small. We inspect every property twice a year. Here's what actually happens during a routine inspection.

8. How do you handle maintenance and repairs?

A good answer explains who does the work, how quickly it's handled, how much they can spend without calling you, and whether they mark up vendor invoices.

Ask for the approval limit in dollars and ask what counts as an emergency. You want a manager who fixes things promptly without surprising you with a large bill you never approved.

9. Where are rent and security deposits held?

A good answer is a separate trust account, with deposits tracked tenant by tenant.

This matters most when a tenant moves out. In South Dakota, a landlord has 21 days after a tenancy ends (and after receiving the tenant's mailing address) to return the deposit or send a written statement of why part of it is being kept, under SDCL 43-32-24 as amended in 2026. Your manager should know that deadline cold. This isn't legal advice.

10. What will my owner statements look like, and when do I get paid?

A good answer includes a sample statement you can actually read, and a set date for owner payouts.

Ask to see one. If you can't tell from a sample statement what came in, what went out, and why, you won't understand your real ones either.

11. How do I get out of the agreement if it isn't working?

A good answer points you to a clear termination clause: the notice period, how notice is delivered, and any fees for leaving.

Read this clause before you sign, not after you're unhappy. It controls how easy it is to leave, and whether the manager keeps charging on tenants it placed. We walk through the whole process in How to Switch Property Management Companies.

12. Which properties or owners do you turn down?

A good answer is an honest list. A manager who takes every property at any price, in any condition, isn't being selective about anything.

It's a revealing question. We've written about why we turn down owners, including properties with known safety issues and ones that will lose money after real expenses.

How would we answer these questions?

Fair's fair. Here's how we'd answer some of them ourselves:

QuestionOur answerResponse timeWe respond the same day, to tenants and owners. Usually that's within an hour, sometimes within minutes.InspectionsEvery property, twice a year.RepairsOur public promise is that repairs are handled within seven days.FeesAsk us for our written fee schedule before you sign anything.Switching from another managerThere's no fee to switch to us. We ask for a $500 reserve per door. On average, the takeovers we do need about $800 in repairs and cleanup.Who we turn downOwners who won't fix known safety issues, insist on overpricing, or want to skip screening.

Want to know what your rental should actually be earning? Get a free rental analysis. We manage rentals in Rapid City and the Black Hills and Billings, as well as Sturgis and Huron.

Frequently Asked Questions

How many property managers should I interview?
More than one. Asking two or three companies the same questions is the easiest way to see real differences in fees, process and communication.

What are the biggest red flags when hiring a property manager?
No written fee schedule, vague answers about maintenance markups, no set inspection schedule, slow replies before you've even signed, and a termination clause that's hard to find or hard to exit.

Is the cheapest property manager the best deal?
Not usually. Compare the total cost of a year, including every add-on fee, and weigh what a vacancy or a bad tenant would cost you.

What should be in a property management agreement?
At minimum: every fee, what the management fee includes, the maintenance approval limit, where deposits are held, and how either side can end the agreement.

Should I ask for references?
Yes. Ask for current owner references with properties like yours, and ask them specifically about communication and owner statements.

Interviewing property managers right now?

Ask us all 12. We'll answer every one of them honestly, including the ones that don't make us look cheapest. Let's talk. Blair Allen Property Management serves owners across South Dakota and Montana.

Chris Twiggs
President, Blair Allen Property Management
📞 605-545-1218
✉️ chris@blairallen.com