10 Questions to Ask Before Hiring a Property Management Company

If you are searching for questions to ask a property management company, start with the way it explains its process. For owners in Sioux Falls and eastern South Dakota, the right fit depends on more than a polished website or a low-looking fee. Before you sign, ask how the company handles the situations that affect your property, your tenants, and your day-to-day involvement as the owner.

These ten questions will help you compare providers. Pay attention not only to the answer, but also to how clearly the company explains its process.

1. Who answers the phone, and what happens after hours?

Ask who handles tenant calls outside normal business hours. What happens when the assigned person is unavailable? How are urgent maintenance issues identified and escalated? When will the owner be contacted?

A manager should be able to explain the after-hours process in plain language. You should not have to settle for a vague reference to “a 24-hour system” without learning what that means in practice.

Watch for: unclear responsibility, no backup plan, or an answer that does not distinguish emergencies from routine requests.

2. How many properties does each person manage?

This question gives you a better sense of the service model than the word “boutique” or “full service” on a website. Ask how work is divided, who would be responsible for your property, and how the team keeps your property’s details available when you have a question.

A smaller portfolio does not automatically mean better service. You are looking for a clear process and a person who can explain how your property will be handled without starting from scratch every time.

Watch for: unclear ownership, vague staffing answers, or a process that makes it difficult to identify who is responsible for your property.

3. What is included in the management fee, and what costs extra?

Ask for the complete fee schedule before you sign. The recurring management charge may not cover every service you need, so ask specifically about:

• Tenant placement
• Lease renewals
• Inspections
• Reporting
• Maintenance coordination
• Any other separate charges

Do not compare companies using the headline percentage alone. Compare what each fee includes, what it excludes, and when an additional charge applies.

Watch for: a fee explanation that changes from one conversation to the next, missing line items, or pressure to sign before you can review the agreement.

4. How do you handle maintenance from start to finish?

Maintenance is one of the clearest tests of a property manager’s process. Ask who receives the request, how the issue is assessed, who selects the vendor, and when the owner is contacted before work is authorized.

Also ask how after-hours emergencies are handled and whether vendor charges are passed through or marked up. The goal is to understand the decisions that happen between a tenant reporting a problem and the owner receiving the final invoice.

Watch for: a general claim about a vendor network without a clear explanation of authorization, communication, or billing.

5. What does your tenant screening process look like?

Ask the company to explain its screening process and the information it considers. You may want to ask about:

• Credit and background checks
• Income and employment verification
• Rental history
• Landlord references
• How applications are reviewed

You should also ask whether the company uses written criteria and applies them consistently. Screening standards can involve fair-housing and privacy considerations, so a prospective manager should be able to explain its process without relying on informal or subjective judgments.

For general background on federal fair-housing protections, review HUD’s overview of the Fair Housing Act. This article is educational, not legal advice. For questions about the laws that apply to your situation, consult a qualified South Dakota attorney. You can also learn more about Equity Property Management on our About page.

Watch for: “gut feel” as the main screening method, criteria that are not documented, or an answer that does not explain how the process is applied consistently.

6. How will I know what is happening with my property?

Ask how often owners receive statements or reports, what those reports include, and who to contact with a question about a line item. A useful report should help you understand the property’s activity rather than simply confirm that a statement exists.

Ask how the company communicates about repairs, tenant issues, and other matters that require your attention. You should leave the conversation knowing what information you will receive and through which channel.

Watch for: a reporting process that is described only as “monthly” without any detail about the information included or how questions are handled.

7. How many owners have you lost in the last two years?

This is a direct way to ask about client retention. It is not the only measure of a good property manager, but the answer can give you useful context about the company’s relationships with owners.

Ask whether owners typically leave because of changes in their circumstances, a property sale, a service concern, or another reason. A straightforward answer is more useful than a claim that every client is satisfied.

Watch for: refusal to discuss retention at all, a number without context, or a response that avoids explaining why owners have left.

8. What happens when a tenant stops paying rent?

Ask the company to describe its general process when rent is missed. Who communicates with the tenant? When is the owner contacted? Does the company handle the legal work itself, or does it coordinate with an attorney?

You can also ask how partial payments, notices, and security-deposit questions are handled. These matters can depend on the lease, the facts of the situation, and current South Dakota law. A property manager’s answer should make clear where its management process ends and where legal advice is required.

This article provides general information, not legal advice. Consult a South Dakota attorney about the law that applies to your property and situation.

Watch for: confident promises about legal outcomes, a process that does not identify when an attorney becomes involved, or an answer that treats every situation as identical.

9. Do you inspect properties, and can I come along?

Ask what inspections the company performs, when they occur, what the inspection is meant to identify, and how the results are documented. Do not assume that every company uses the same inspection schedule or process.

You can also ask whether owners may participate in a walk-through when appropriate. The point is to understand how the manager and owner will share information about the condition of the property.

Watch for: an inspection answer with no defined purpose, no explanation of documentation, or no clear way for you to review the findings.

10. What happens if I want to cancel?

Read the contract’s exit terms before you sign. Ask about the initial term, notice requirements, renewal language, and any fees or responsibilities that apply when management ends.

The goal is not to assume that every contract should be month-to-month. It is to understand the commitment you are making and what the transition would involve if the arrangement no longer fits your needs.

If a company will not give you enough time to read the agreement or answer questions about the exit clause, treat that as useful information.

FAQ

How much does property management cost in South Dakota?

There is no single price that applies to every property or management company. Ask for a complete fee schedule that separates the recurring management charge from leasing, renewal, maintenance, inspection, and other possible fees.

Compare the total service and fee structure rather than one percentage in isolation. Ask the company to explain when each charge applies before you sign.

Is property management worth it for a single rental?

It depends on the work you want to keep handling, the needs of the property, and the cost of managing it yourself. Compare the management fee with the time involved in tenant communication, maintenance coordination, rent collection, reporting, and other routine tasks.

A conversation with a property manager can help you identify which responsibilities would actually be transferred and which would remain yours.

Can I hire a property manager for tenant placement only?

Some companies offer tenant placement without ongoing management, while others focus on full-service arrangements. Ask whether tenant placement is available separately and exactly what that service includes, such as marketing, application processing, screening, and lease-related work.

Get the arrangement in writing so you understand what happens after the tenant moves in.

Ready to compare?

If you are comparing property management companies in Sioux Falls or eastern South Dakota, use these questions as a starting point. Equity Property Management is a small, homegrown, customer-focused team. Contact us to discuss your property and the questions you want answered before you make a decision.