Genuine question: Picking an Out-Of-State Property
Member since 2021 · 14 posts · 1 vote
Genuine question: Picking an Out-Of-State Property
9 Replies
Hi David! I’d interview at least 2–3 property managers and ask how they handle vacancies, how often they send updates, and how quickly they respond to maintenance issues. I’d also ask for references from current clients who own rentals out of state. You could even ask them to walk you through how they’d handle a vacancy from listing to placing a tenant. That might give you a better idea of how they actually work before signing.
- Member since 2021 · 14 posts · 1 vote1d
thanks Min, good tips especially the walk through on a vacancy, appreciate it
- David
- 16hJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Hi David, a two-month vacancy with no updates is the exact thing worth screening for, so I'd add a few questions to Min's list. First, ask what their average days to lease has been over the last year, and how they handle showings in the first week. Anyone can say they market aggressively, but they should be able to give you real numbers. Second, ask for the full fee sheet in writing: leasing fee, renewal fee, any markup on maintenance and whether there's an approval limit before they spend your money. Hidden fees are where a lot of owners get surprised. Third, ask who does the repairs. A manager with their own vetted vendors and an owner portal with photos and invoices is a lot easier to hold accountable from a distance. Last, ask for two or three owners who live out of state and call them. I'd also run it like a trial: start with one property and watch the first vacancy and the first repair before you hand over more. Happy to connect and compare notes on what's worked for you.
Jimmy Lieu, Red 1 Realty4.9122 Reviews - 15hDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
We’re a Property Management Company (PMC) in Metro Detroit ONLY, with 25+ years of experience, 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 (), 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
Logical Property Management4.9469 Reviews - 15hJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 876 posts · 615 votes
Start by pricing your last bad experience, because that is the question behind your questions.
Two months vacant on a 3BR+ at my Section 8 rents of $1,395-$1,950 is $2,790-$3,900 gone, before the mortgage payment you still had to make. So my first question to any PM is not about fees. It is: what is your average days vacant, in writing, and how often do I hear from you while a unit sits?
Second: show me a real monthly owner statement, and walk me through one repair line. If the paperwork is vague, the management will be too.
Third: who answers when I call? At 236 properties I learned a PM is either a reporting system or a surprise machine. Hire the reporting system.
- Realtor · Memphis, Shelby County · Member since 2026 · 165 posts · 55 votes12h
I would judge a property manager by communication before I judge them by the pitch. Ask how often you will hear from them during a vacancy, how quickly they respond to maintenance, and what exactly happens when a unit sits empty, not just that they will market it. Ask for a sample owner statement and a sample lease, and for references from owners with properties like yours, then ask those owners how long they have stayed and how vacancies were handled. A manager who cannot describe their vacancy process clearly is telling you something. Before signing, I would also confirm the contract terms: length, termination clause, and what fees apply on leasing and renewals. The phone call is the sales pitch; the reporting and the vacancy plan are the service.
- Member since 2021 · 14 posts · 1 vote11h
thanks Jimmy, the fee sheet in writing and calling a couple out of state owners are both good ones, i didnt think about the maintenance markup and approval limit. starting with one property as a trial makes sense too, dont put all your eggs in one basket
- David
- 11hAmit PatelBusiness MemberProperty Manager · Bartlett, IL · Member since 2025 · 170 posts · 67 votes
Sorry that happened, 2 months of silence on a vacancy is exactly what makes owners nervous for good. An agent referral is a fine starting point, but I’d still interview at least 2 or 3. Agents often refer whoever sends them deals, not necessarily whoever manages best.
The 3 questions I’d always ask:
“What’s your average days to lease, and what happens if a unit sits past 30 days?” A good manager has a plan: price review, new photos, more marketing. And they tell you without you asking.
“How often will I hear from you during a vacancy?” Get it specific, like a weekly update with showings and feedback. Then put that expectation in writing.
“What are the termination terms?” If you can leave in 30 days without a big fee, they have to earn your business every month.
Bonus: ask to see a real owner report. If you can log into a portal and see showings, work orders, and statements yourself, you’re never left guessing again.
Happy to chat more by DM if it helps.
Casanomy Property Management564 Reviews - 10hRyan BrownPro MemberReal Estate Agent · Louisville, KY · Member since 2022 · 54 posts · 11 votes
@David Ghazaryan, sorry you went through that. Two months of silence on a vacancy is enough to make anyone gun-shy. I've worked with quite a few out-of-state investors and helped them set up the whole team: financing, the purchase, management and even accountants who understand the more sophisticated tax side of real estate. So I'll answer from the agent side of your question.
A referral from your agent can be a great starting point, but it depends on what kind of agent you're working with. Amit's point is fair. Some agents refer whoever sends them business. An agent who's looking at a single commission doesn't have much reason to care how the property manager performs after closing. An agent who intends to work with you to build a portfolio has a lot more skin in the game. If I connect an out-of-state client with a manager and that manager drops the ball, the client calls me, and they're not buying their second or third property through me. So I only refer managers I've seen perform for other clients, and I keep hearing from those clients long after closing, which tells me whether the manager is still doing the job.
So I wouldn't choose between the referral and interviewing. Do both. Ask your agent how many of their out-of-state clients use that manager, how long they've been with them, and whether anyone has left and why. Then interview that manager plus one or two others, using the questions people have already shared here. If your agent can't answer those questions, that tells you something too.
The one thing I'd add to the list is to ask the manager how they handle a tenant who stops paying. Get them to walk you through the timeline, the notices and the eviction process in that market. A vacancy costs you money, but a nonpaying tenant who stays costs you more, and how a manager handles that is a good test of whether they'll protect you when you're not there.
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