5 Essential Questions to Ask a Property Manager Before You Sign

Choosing the right property manager can make the difference between a thriving, stress-free investment and a frustrating, underperforming one. While every company may highlight their commission rate or promise strong occupancy, property owners should dig deeper. The key is to ask smart, practical questions that uncover how your property will actually perform, how you’ll be supported, and how transparent the financials will be.

Below are five essential questions every property owner should ask before hiring a property manager with insight into why each question matters and what kind of answers you should expect.

When considering a property manager, it’s crucial to know the essential questions to ask a property manager to ensure you’re making the right decision.

Essential Questions to Ask a Property Manager

1. What Can I Expect for Gross Revenue?

One of the key questions to ask a property manager is about their expectations for gross revenue. This is essential when evaluating potential property management partnerships.

Too often, owners get caught up in the percentage commission a management company charges. While commission rates are important, the bigger question is: What will my property actually earn? Gross revenue is the true indicator of performance.

A company charging a low commission might seem appealing, but if they underperform on revenue, you’ll end up making less overall. Conversely, a company with a slightly higher commission but stronger marketing, pricing, and guest service strategies may put significantly more money in your pocket.

When you ask this question, a professional property manager should provide realistic revenue projections based on:

• Comparable properties in your building or neighborhood

• Historical performance data for similar units

• Seasonal occupancy trends in your market

• Pricing strategies (dynamic pricing, high/shoulder/low season adjustments)

Red flag: If a manager hesitates to share data, gives vague estimates, or guarantees unrealistically high returns, that’s a sign to proceed with caution.

Look for transparency and detailed breakdowns. You want a partner who measures success by owner profitability, not just filling nights at the lowest rate.

2. What Are You Doing to Market My Property?

Another significant question to ask a property manager is related to their marketing strategies. Understanding how they promote your property can make a big difference.

Your property is only as profitable as the visibility it receives. In today’s competitive short-term rental market, simply listing on Airbnb or VRBO is not enough. Marketing is where strong property managers separate themselves from average ones.

When asking this question, listen for strategies such as:

• Multi-platform distribution: Ensuring your property is listed on Airbnb, VRBO, Booking.com, Expedia, and direct-booking websites.

• Search engine optimization (SEO): Driving traffic to their management website and showcasing your property in local “things to do” content.

• Professional photography and videography: High-quality visuals dramatically increase booking conversion rates.

• Social media and paid advertising: Highlighting properties on Facebook, Instagram, and targeted Google Ads campaigns.

• Dynamic pricing tools: Adjusting nightly rates daily based on demand, events, and competition.

• Email marketing: Reaching past guests with promotions to encourage repeat bookings.

A property manager should also explain how they build trust and credibility with guests. For example, showcasing consistent reviews, maintaining Superhost status, and offering direct-booking incentives like avoiding platform fees.

Red flag: If a manager’s answer stops at “we list on Airbnb,” that’s not a marketing strategy; it’s the bare minimum.

3. What Is Your Commission?

Don’t forget to ask a property manager about their commission structure as this can directly impact your profits.

While revenue potential should come first, commission rates are still an important part of the equation. Property managers typically charge anywhere from 20% to 40% of gross revenue, depending on the services included.

When discussing commission, clarify:

• Does the percentage cover full-service management (marketing, guest communication, cleaning coordination, maintenance oversight, accounting, tax remittance)?

• Are there hidden fees—such as credit card fees, booking fees, linen charges, or marketing surcharges—that reduce your take-home profit?

• Does the manager offer different commission structures (e.g., lower rates for long-term rentals vs. short-term vacation rentals)?

Remember: the lowest commission does not always mean the best deal. A well-run property manager who charges a bit more but maximizes gross revenue often leaves owners with a higher net income.

Red flag: Companies that avoid discussing additional fees up front, or managers who focus solely on their low commission rate without addressing marketing and revenue performance.

4. Do You Remit My Sales Taxes Each Month?

Asking a property manager if they remit your sales taxes can clarify important financial responsibilities.

This is one of the most overlooked questions—but one that can save you serious headaches. Short-term rentals are subject to state and local lodging taxes, which must be filed and remitted monthly or quarterly depending on your jurisdiction.

Some platforms, like Airbnb, collect and remit certain taxes automatically. However, this doesn’t always cover every local requirement, and VRBO/Booking.com may handle taxes differently. If your property manager does not remit taxes on your behalf, you may be left scrambling to file them yourself—or worse, facing penalties for non-compliance.

When asking this question, a reliable property manager should explain:

• Which taxes are collected by booking platforms and which must be remitted separately.

• Whether they handle monthly filings with your state and municipality.

• How they ensure compliance and keep detailed records in case of an audit.

Red flag: If the manager says “the platforms handle it all” without clarifying the details. Tax laws vary by city and state, so it’s crucial that your property manager demonstrates a thorough understanding of your specific market.

5. Please Walk Me Through One of Your Statements

It’s beneficial to ask a property manager to walk you through one of their statements to ensure transparency and understanding of how revenue is managed.

Clear, transparent accounting is one of the strongest indicators of a professional property manager. Owners should always know exactly how much money their property is generating, what expenses are being deducted, and what their net payout is.

Ask your prospective manager to show you a sample statement. Look for:

• Gross revenue line items (nightly rates, cleaning fees, app fees, and pet fees, etc.)

• Commissions and management fees clearly deducted

• Operating expenses (cleaning, maintenance, supplies, taxes, utilities if applicable)

• Net payout amount (what hits your bank account each month)

• Supporting documentation such as receipts for repairs or invoices for cleanings

A transparent, easy-to-read statement not only builds trust but also helps you track your property’s performance over time.

Red flag: Managers who can’t provide a sample statement or offer vague explanations about how payouts are calculated. If the statement looks overly complicated, confusing, or padded with unexplained charges, it’s a sign that transparency is lacking.

Final Thoughts

Finally, be sure to consider all the questions to ask a property manager so that you can make an informed decision.

Hiring a property manager is one of the most important decisions you’ll make as a real estate investor. The right partner will maximize your revenue, protect your property, and handle the details so you can enjoy passive income without the stress of day-to-day management.

Remember, the questions to ask a property manager can significantly affect your investment strategy and success.

To recap, make sure you ask:

1. What can I expect for gross revenue?

2. What are you doing to market my property?

3. What is your commission?

4. Do you remit my sales taxes each month?

5. Can you walk me through one of your statements?

These five questions will give you a clear picture of how a property manager operates, whether they’re focused on your bottom line, and if they’re equipped to deliver long-term results.

These essential questions to ask a property manager will guide you in selecting the right partner for your investment.

At the end of the day, remember: you’re not just hiring someone to manage a property—you’re hiring someone to protect your investment and maximize your returns. Choose wisely, and your property can become a reliable source of income for years to come.

Ultimately, knowing the questions to ask a property manager will empower you in your real estate journey.