Start With Licensing and Credentials
In most states, property managers are required to hold a real estate license. Before signing any agreement, verify that the company and its managers are licensed in your state. Ask whether they carry errors and omissions insurance and general liability coverage.
Understand the Fee Structure
Property management fees vary widely. Most companies charge a monthly management fee of 8% to 12% of rent collected, plus a leasing fee when they place a new tenant. Get a complete fee schedule in writing and ask specifically about maintenance markups, renewal fees, and early termination penalties.
Ask About Their Tenant Screening Process
Your property manager’s ability to place qualified tenants is one of the most important factors in your investment’s performance. Ask what credit score thresholds they use, how they verify income, and whether they check court records for prior evictions.
Review Their Communication Standards
How often will you receive financial reports? What is the response time for maintenance requests? Do they use an owner portal where you can review income, expenses, and work orders? Consistent communication prevents small issues from becoming large ones.
Check References and Reviews
Ask for references from current clients with similar property types. Read Google reviews carefully, paying attention to how the company responds to negative feedback. A pattern of unresolved complaints is a warning sign.
What Lux Management Group Offers
Lux manages residential properties across Arizona and Alabama with transparent fees, responsive communication, and a documented leasing and maintenance process. Contact us to learn whether we are the right fit for your portfolio.
