How Do You Vet a Property Manager Before Buying Out-of-State?

Question

Hi BP community,

I’m new to investing and currently looking at out-of-state rentals in the $80–125K range. My biggest hesitation right now isn’t finding a deal — it’s making sure I can trust the people managing it once I buy.

I’ve read (and been told) that a good property manager can make or break the experience, especially for remote investors. That makes me wonder:

• What’s your process for vetting a property manager before you even close on a deal?
• Are there specific questions you always ask in the interview?
• Any red flags to watch out for that might not be obvious to a first-time investor?
• Do you usually get referrals through agents/contractors, or do you prefer to find PMs independently?

I know I’ll need to build the rest of my team (agent, contractors, etc.), but I feel like starting with the PM could help me move forward with more confidence.

Would love to hear from those of you who’ve been down this road already — what worked, what didn’t, and any lessons learned.

Thanks in advance,

CR

Michael Smythe · Answer

@Christopher Rubio

We’re a Property Management Company (PMC) and we’ve seen owners make the same mistakes, over & over again when looking to hire a PMC – which drives us nuts!.

In our experience, the #1 mistake owners make is ASSUMING all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY.

So, owners mistakenly think price is the only differentiator – and look for a PMC like they’d shop for groceries☹

We encourage you to learn from the mistakes of others by reading posts here on BiggerPockets from owners that picked a PMC solely by price and regretted it.

We recommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.

Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.

Even if someone gives you a referral, do NOT make the mistake of assuming that just because a PMC met their expectations, they’ll meet your expectations. We all have our own expectations and what works for someone else, may not work for you.

If you’re new to all of this, it's often a case of not doing enough research, as you don't know what you don't know!

So, ask more questions!

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings. Why do you think purchase contracts are so long and have such small print?

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Here’s some articles we’ve contributed to BiggerPockets about screening a PMC BETTER than you would a tenant!

20 Questions to Ask When Vetting a Property Management Company: Processes

13 Questions to Ask to a PMC: Communication and Documentation

24 Questions to Ask When Evaluating a Property Management Contract

Clare Pitcher · Answer

Hey Christopher!

Vetting a property manager is crucial for out-of-state investing. As a PM here in Milwaukee, we work with a large number of out-of-state clients, and since I often take the discovery calls, here are some of the key questions I encourage owners to ask any PM they’re considering:

• What are the terms of your management agreement? Is it month-to-month, or are you locked into a year-long contract even if things aren’t working out?
• What does the renewal process look like? Tenant turnover is usually the biggest cost for owners, so a clean and thorough renewal process is essential.
• How are maintenance requests handled? Is there an in-house team or are vendors outsourced? Are there coordination fees?

What are the terms of your management agreement? Is it month-to-month, or are you locked into a year-long contract even if things aren’t working out?

What does the renewal process look like? Tenant turnover is usually the biggest cost for owners, so a clean and thorough renewal process is essential.

How are maintenance requests handled? Is there an in-house team or are vendors outsourced? Are there coordination fees?

Other factors worth considering:

• Pricing: In property management, you often get what you pay for. The cheapest option isn’t always the best long-term partner.
• Reputation: Check Google reviews and their overall online presence.
• References: Ask to speak with a current client to hear their perspective on working with the company.
• Referrals: If you know people locally, see who they recommend—good PMs usually have a strong community presence.

Pricing: In property management, you often get what you pay for. The cheapest option isn’t always the best long-term partner.

Reputation: Check Google reviews and their overall online presence.

References: Ask to speak with a current client to hear their perspective on working with the company.

Referrals: If you know people locally, see who they recommend—good PMs usually have a strong community presence.

Hope this helps as you narrow down your options!

Zeke Liston · Answer

You’re asking the right questions — the PM really can make or break your experience, especially from out of state. A few things I’ve learned:

• - I like to see if they think like an investor. Do they own rentals themselves? Do they talk about tenant retention, vacancy, and expenses — or just “collecting rent”?
• - Ask about their systems: reporting, software, average vacancy time, tenant screening. If they can’t give you numbers, that’s usually a red flag.
• - Maintenance is a big one — how do they handle after-hours calls, and do they mark up repairs? Get specifics.
• Referrals are good, but I always ask for references from current out-of-state owners they work with.

- I like to see if they think like an investor. Do they own rentals themselves? Do they talk about tenant retention, vacancy, and expenses — or just “collecting rent”?

- Ask about their systems: reporting, software, average vacancy time, tenant screening. If they can’t give you numbers, that’s usually a red flag.

- Maintenance is a big one — how do they handle after-hours calls, and do they mark up repairs? Get specifics.

Referrals are good, but I always ask for references from current out-of-state owners they work with.

If they’re slow to respond while you’re interviewing them, or they’re vague about fees/screening, trust your gut — it only gets worse once they have your business.

Christopher Rubio · Answer

@Zeke Liston

This is really helpful — thank you for breaking it down so clearly. I like the idea of making sure the PM actually thinks like an investor and not just a rent collector. That distinction feels huge, especially for me being out of state.

My biggest concern has been how to make sure I’m working with someone trustworthy before I commit, and the points you listed (vacancy times, tenant screening specifics, maintenance procedures, and references from other out-of-state owners) give me a great framework to start with.

I’ll definitely keep those red flags in mind — better to walk away early than be stuck with the wrong PM later. Appreciate you sharing this!

Christopher Rubio · Answer

@Clare Pitcher

This is super helpful — thank you for laying it out so clearly. Those discovery call questions (especially about contracts, renewals, and maintenance) are exactly the kind of things I wouldn’t have thought to ask until it was too late.

My biggest hesitation with out-of-state investing is making sure I’m working with a property manager I can really trust, and your advice about digging into reputation, references, and even local referrals makes a lot of sense. I can see how the cheapest option upfront could end up being the most expensive mistake in the long run.

I’ll definitely keep these questions handy as I start interviewing PMs. Appreciate you sharing your perspective from the other side of the table.

Charles Clark · Answer

@Christopher RubioGreat questions , you’re spot on that the right property manager can make or break your deal, especially out-of-state. Personally, I always ask about their tenant screening process, average days-on-market, and how they handle maintenance requests. Red flags: poor communication, vague fees, or no clear process for evictions. Referrals from trusted investors are gold, but I also interview a few independently to compare. Trust your gut — if communication isn’t solid before you hire them, it won’t get better later.

Bob Lachance · Answer

You’re on the right track by not just hiring based on recommendations but taking steps to vet your options thoughtfully. BiggerPockets has great resources, but before interviewing property managers, first make a list of the specific tasks you want help with—like tenant placement, rent collection, or handling emergencies. Many investors skip this and end up unhappy simply because they hired without clarity.

Once your list is clear, develop interview questions that directly relate to those tasks.

Red flags include poor communication, vague or hidden fees, lack of thorough tenant screening, and a weak maintenance process. Always check reviews and ask for documentation of processes (not just verbal promises). Referrals from agents or contractors are helpful, but always do your own due diligence—independent research is key to real peace of mind.

Christopher Rubio · Answer

@Michael Smythe

Thanks for sharing this perspective — really helpful for someone like me who’s just starting out and especially looking to invest out of state. My biggest hesitation has been figuring out how to build a trustworthy team, and the property manager seems like the cornerstone of that.

You make a great point about not assuming all PMCs operate the same way or that cheaper is better. I hadn’t thought about comparing management contracts line by line, but that makes a lot of sense — what’s left out could be just as important as what’s included.

I’ll definitely check out the resources you shared, especially the vetting questions. It sounds like the key is asking detailed questions up front and making sure expectations are aligned before signing anything.

Appreciate you breaking this down — it’s exactly the kind of insight I need to avoid rookie mistakes.

How Do You Vet a Property Manager Before Buying Out-of-State?

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