10 Ways to Keep Your Property Manager Honest

When you entrust your property to a manager, you want to feel confident they’re acting in your best interest. Unfortunately, just like any industry, property management can have its share of oversights, misunderstandings, or even dishonest behavior. Here are ten practical ways to keep your property manager honest, so you can protect your investments and maintain peace of mind.

1. Clearly Define Responsibilities in a Written Contract

A thorough contract that outlines responsibilities, fees, and expectations leaves little room for ambiguity. Include details about rent collection, maintenance schedules, reporting frequency, and how expenses will be handled. Having these details spelled out can help prevent “he said, she said” disputes.

Tip: Have an attorney review your contract to ensure you’re protected and that local regulations are followed.

2. Perform Background and Reference Checks

Before hiring anyone, research the company and the individual property manager. Check for any complaints or disciplinary actions through local business bureaus, real estate licensing boards, or property management associations. Request and verify references from current and past clients to confirm the manager’s track record.

3. Request Regular Financial Reports

Staying on top of your property’s financials is key. Ask for monthly or quarterly statements that detail income, expenses, and any reserve funds. Cross-reference these statements with bank records and receipts to catch inconsistencies early.

Tip: Use accounting software or property management platforms (e.g., Buildium, AppFolio) to streamline reporting and facilitate audits.

4. Keep Open Lines of Communication

Encourage your property manager to keep you updated on key events—vacancies, major repairs, new leases, and changes in local regulations. Aim for a set meeting or call each month to review the property’s performance and address potential issues.

5. Visit Your Property (or Send a Representative) Regularly

Whether you can visit in-person or arrange for a representative, routine property visits help verify maintenance work and assess the overall condition. It also shows the manager you’re engaged and paying attention, minimizing the likelihood of mismanagement.

6. Require Multiple Bids on Major Repairs

Whenever a major expense arises (e.g., roof replacement, HVAC upgrades), ask your manager to gather quotes from multiple contractors. This not only helps you get the best price but also ensures your manager isn’t steering you toward preferred contractors for personal kickbacks.

7. Use Technology for Transparency

Technology can be a game-changer in property management. Online portals allow landlords to track rent payments, work orders, and leasing activities. Some apps even provide real-time updates, so you always have an up-to-date snapshot of your property.

8. Ask for Receipts and Supporting Documentation

In addition to financial reports, request copies of invoices and receipts for repairs, maintenance, and utilities. A credible property manager should be happy to provide these, and it serves as a simple way to confirm spending aligns with your budget.

9. Consider Auditing the Books Periodically

Just like corporations undergo audits, your property management finances can benefit from a professional review. A qualified accountant or auditor can uncover discrepancies and help tighten financial controls.

Tip: Even a quick spot audit can deter dishonest activity if your property manager knows you’re watching closely.

10. Understand your Business

Keep a ‘Temperature Check’ on Major Expenses & Understand Tenant Qualification

Property managers who belong to professional organizations (such as the National Association of Residential Property Managers or the Institute of Real Estate Management) are often guided by ethical codes and industry best practices. This professional affiliation provides an added layer of accountability and oversight.

Keep a ‘Temperature Check’ on Major Expenses & Understand Tenant Qualification

Major Annual Expenses to Monitor:

1. Utilities – Electricity, water, gas, trash, etc.

2. Insurance – Property, liability, and any specialty coverage (e.g., flood insurance).

3. Interest Expense – If you have a mortgage, keep an eye on fluctuations in interest rates.

4. Repairs & Maintenance – Routine upkeep, emergency fixes, and periodic improvements.

5. Property Taxes – Typically rise over time; challenge them if you feel assessed improperly.

6. Tenant Qualification:

   
   

   Properly screening tenants is crucial for steady cash flow and minimal hassles. Make sure your property manager runs credit checks, verifies income, and looks into rental history. A reliable tenant reduces the risk of late payments, property damage, or costly evictions—ultimately safeguarding your bottom line.

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